This AB Linas Agro Group Remuneration Policy (hereinafter referred to as the Remuneration Policy) establishes requirements and guidelines in determining the remuneration of the Managing Director and the Board members of AB Linas Agro Group (hereinafter referred to as the Company).
The Remuneration Policy shall be reviewed on a regular basis to be consistent with the Company’s long-term strategy.
1. General provisions
1.1. The Company’s remuneration system is aligned with the Company’s strategy, short-term and long-term objectives, as set out below:
1.1.1. The Remuneration Policy reflects the tasks formulated by the Company and the balanced short-term and long-term goals set, as well as the responsibilities undertaken.
1.1.2. The Remuneration Policy seeks fair representation and value creation for all stakeholders – employees, shareholders, partners, consumers.
1.1.3. The Company uses the remuneration system with the object to attract talented employees, motivate and retain them, while implementing the Company’s long-term strategy.
2. Remuneration of the Board
2.1. Members of the Board, who are also employees of the Company, get remuneration according to the signed employment contracts.
2.2. Members of the Board may be remunerated with the payments for their activities (tantiems).
2.3. The Company does not pay any other additional benefits to the Members of the Board for their work as Members of the Board.
2.4. Members of the Board may be granted shares of the Company or remunerated with share options only in accordance with the rules of granting shares of AB Linas Agro Group, which are approved by the General Meeting of Shareholders of the Company.
3. Remuneration of the Managing Director
3.1. The remuneration of the General Manager shall be in line with financial results of the Company, market conditions, competence, as well as reflect the requirements and responsibilities that the position entails.
3.2. The remuneration package of the General Manager consists of a fixed and a variable parts; share option programs may also be applied.
3.3. The fixed part is determined and approved by the Board and paid in accordance with the rules applicable in the Company.
3.4. The variable part is paid after closing of the financial year by the decision of the Board, taking into account the approved strategy, financial and non-financial objectives, such as: Company’s financial activity, annual results, budget execution, strategic business development, performance of transactions and projects that contribute to implementation of the Company’s strategy, goals and mission, achievement of relevant financial ratios or specific financial objectives. At the initiative of the Board, the General Manager may be additionally granted an incentive payment to encourage a well-done work or well-performed important project that ensures the implementation of the Company’s strategy. The incentive payment is not guaranteed and/or not binding on the Company.
3.5. The General Manager may be granted shares of the Company or remunerated with the share options only in accordance with the rules of granting shares of AB Linas Agro Group, which are approved by the General Meeting of Shareholders of the Company.
3.6. The Company may provide other benefits to the General Manager, which are subject to market conditions and may change from time to time. Additional benefits may include entitlement to the Company’s car, health and medical services, pension schemes, other.
3.7. The allocated annual variable portion of the remuneration shall not be deferred. However it might be recovered within 12 months after allocation, if it transpires that allocation was calculated on the basis of false or misleading information provided by the General Manager. The decision is taken by the Board.
3.8. In the event of termination of employment, voluntarily or on the initiative of the Company, there is no agreed compensation, yet in each case the redundancy pay may not exceed the sum of 24 fixed salaries. Other conditions are determined by the effective legal acts.
4. Final provisions
4.1. The Remuneration Policy enters into force after its approval by the General Meeting of Shareholders of the Company.
4.2. The Remuneration Policy and information on the implementation of the Remuneration Policy are published on the Company’s website.