Variable Compensation
INTRODUCTION
Variable compensation is the part of total cash compensation that will vary in amount from year to year considering the performance of the employee individually, the Entity and the Group.
There are multiple types of variable compensation and recognition programs that can be short term (evaluation of achievements and performance less than or one year) or long term (evaluation cycle longer than one year) as well different considering the type of program – is it local or group-wide.
VARIABLE COMPENSATION: Locally Graded Employees (S14 and below)
Locally Graded Employees (S14 and below) are eligible to participate in the Global Performance Sharing program intended to provide a motivational element that recognizes employees' contributions by involving them in the Group's results at the global level, thereby strengthening their sense of belonging to the Syensqo Group.
Besides that, specific Short Term Incentive programs at local (country) or GBU level can be prevalent and are intended to recognize individual or team achievements, similar to the objectives of the Syensqo STI plan (see below).
To learn more about these programs, please contact your local HR representative.
VARIABLE COMPENSATION: Globally Graded Employees (S15 and above)
A) Short Term Incentive (STI) plan
All S15 and above graded employees (except employees on Syensqo's Sales Incentive Plan - see below) are eligible to participate in the Syensqo STI program, which is designed to reward employees for the results delivered by individuals, by teams, and by the Group as a whole, thus reinforcing our purpose and working as ONE Team.
The STI Bonus Target is determined as a percentage of annual base salary for positions graded at S15 and above and has been set by region and grade. For grades S23 and above, the @Target percentage of annual base salary is set globally and is the same in all countries.
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STI Targets for eligible participants as a percent of Annual base salary:
The payout of Syensqo STI plan is based on the achievement of predetermined annual Group and Entity specific goals as well as individual objectives. The weight of these elements varies by the grade of the employee.
Individual performance is rewarded in accordance with the outcomes of the Performance Cycle (performance rating). The payout of STI varies from 0-200% of the @Target percentage based on the achievement of these goals and allocated budget.
B) Sales Incentive Plan (SIP)
Syensqo is customer obsessed and your role, as part of the Commercial team, is key to bond with our clients, ensuring that we create long-term shared value and top line growth. To support and reward those efforts, the leadership and the significant contributions, a new Syensqo Global Sales Incentive Plan (SIP) has been recently implemented for the professional development and personal motivation of Syensqo's Commercial teams.
Recommended reading documents:
The plan applies solely to all Customer facing sales/account owners and sales-force/sales managers below leadership team level who spend more than 50% of their time in customer-facing sales responsibilities. For example, positions like Key Account Managers, Account Managers, Inside Sales, Distribution Managers, and Sales Managers. Exceptions to this require Executive Leadership Team approval.
Your SIP plan payout is 100% based on your individual contribution to the Group.
Payout for each of those elements can range from 0% to 200% of the @Target percentage. Bonus Targets are defined by region and grade as shown in the table below, which is determined as a percentage of your Annual Base Salary:
The KPIs of the SIP are selected by the GBU’s from a menu, approved by the ExCo.
C) Long Term Incentive plans
The purpose of the Long Term Incentive plans is to align compensation, decisions and interests of our senior leaders with Syensqo's long term strategy and the company’s sustained performance. Currently, these plans are applicable to grades S23 and above.
RECOGNITION PROGRAMS
Recognition programs are periodical or ad-hoc (as needed, "spot") award programs that can be monetary or non-monetary programs to formally recognize an achievement, a performance, a behavior or celebrate the success of a particular initiative, project or individual contribution.
There is a wide spectrum of recognition programs in Syensqo that are usually GBU or country specific, with the exception of the Syensqo Special Recognition Award program, which is consistent around the globe in multiple GBUs/Functions.
The Syensqo Special Recognition Award program is designed to provide a cash vehicle for recognizing individual employees or small teams for outstanding achievement that clearly demonstrates elements of Syensqo Management and People Models.
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