Remuneration report

At Holcim, it is the employees who create value and success of the company. Holcim therefore wants to be an attractive employer in the competitive employment market worldwide. The Group’s compensation system has proven robust, and forms a solid basis for compensation and motivation at the various hierarchical levels in line with the main objectives of Holcim.

Financial compensation of the governing bodies of Holcim Ltd

This part of the Annual Report covers the financial compensation of the Board of Directors and Senior Management, as well as compensation of former members of governing bodies of Holcim Ltd. This part of the Annual Report has also been prepared in compliance with the applicable regulations, including the rules of the SIX Swiss Exchange. No payments were made to close persons.

Architecture of the pay-setting process

The Nomination & Compensation Committee advises and supports the Board of Directors, among other things, in determining the compensation policy and the compensation of the Board of Directors and Senior Management. It holds ordinary meetings at least three times a year: at the beginning of the year, in the middle of the year and in autumn.

At the beginning of the year, the degree of achievement of objectives for the previous year is assessed and objectives are set for the current year. The CEO makes proposals for the assessment of the members of the Executive Committee and assesses the performance of the other members of Senior Management. On the basis of these proposals, the Nomination & Compensation Committee decides on the assessment of the members of the Executive Committee and takes due note of the assessment of the performance of the other members of Senior Management. Also at the meeting at the beginning of the year, the Nomination & Compensation Committee determines the total financial compensation of the Executive Committee on a yearly basis, with the Board of Directors taking due note. On a yearly basis, the CEO determines the financial compensation of the other members of Senior Management, with the Nomination & Compensation Committee taking due note. In autumn, the Nomination & Compensation Committee reviews the financial compensation of the Board of Directors for the coming year. If necessary, it proposes adjustments to the Board of Directors.

The Chairman of the Nomination & Compensation Committee may invite members of the Executive Committee, other officers of the Group or third parties to attend the meetings. After each Nomination & Compensation Committee meeting, the Board is informed of the topics discussed, decisions taken and recommendations made.