Overview on the Compensation Policy

Clariant’s compensation policy supports its ambition to be an employer of choice and strives to attract, motivate, and retain committed employees.

Compensation Report

This short overview summarizes some aspects of compensation that are particularly relevant for integrated value creation at Clariant. For more detailed information, see the separate

1. Compensation concept

To attract, motivate, and retain qualified and committed employees throughout the organization, Clariant’s remuneration policy is based on the following main principles: remuneration components are aligned with and designed to support the Clariant business strategy; regular benchmarking studies are conducted to ensure compensation levels are competitive and in line with market practices; compensation practices always comply with local regulations, such as laws and collective union agreements; compensation policy and practices ensure consistency and a fair treatment of employees working for Clariant; remuneration components incentivize business and individual performance through performance-based pay; and remuneration components are made transparent to the individual and the organization.

Clariant considers six main remuneration principles

  • Alignment with business strategy
  • Competitiveness
  • Internal fairness
  • Performance-based pay
  • Transparency

The structure of total remuneration is highly performance and success-oriented to ensure that shareholder and management interests are aligned. While Long-Term and Short-Term Incentives for management are based on Group Performance Indicators only, individual performance – measured through a consistent, global Performance Management system – is a determining factor in career development and the annual salary review process. Within the Global Performance Management System, each manager’s or employee’s performance is assessed and discussed on a yearly basis. This process includes regular 360-degree feedback for all management levels (ML).

2. Linking compensation to sustainable value creation

Short-term incentive plans (cash bonus) include the Group Management Bonus Plan, the Group Employee Bonus Plan, and the Global Sales Incentive Plan. Long-term incentive plans offer equity-based compensation for approximately 240 senior managers worldwide ( and Management Level 1 – 4). SEE FIGURE 001

The Group Management Bonus Plan (GMBP) is anchored in the overall Performance Cycle at Clariant, which ensures a challenging business-specific target agreement for each Business Unit and Service Unit.

001 Clariant Incentive Scheme Landscape

Clariant Incentive Scheme Landscape (graphic)

Number of positions as of 31 December 2019
2 ML: Management Level

The individual GMBP amount of bonus payments generated in a year is determined by the results achieved by the Clariant Group measured against defined objectives. The achievement is calculated based on three elements: financial result of the Group; financial results of the Business Unit or Service Unit; and defined top priorities (Group Performance Indicators and strategic projects). In addition to financial indicators, the Group Performance Indicators include, for example, inventory targets, benefits, innovation sales, and occupational health and safety (lost time accident rate).

The Group Employee Bonus Plan (GEBP) is a globally aligned and standardized bonus plan for non-management levels for all legal entities around the world that apply (where legally compliant and possible) the global Group Achievement or a combination of Group Achievement and local Top Priorities as the basis for bonus payouts. For the sales force, the Global Sales Incentive Plan incentivizes premier sales performance and growth by focusing on the individual sales performance in the areas of sales, margin, and trade receivables.

After five years without any plan changes, the Compensation Committee decided to amend the Long-Term Incentive Plans for senior management starting in 2019 to better reflect Clariant’s strategic targets, more closely align shareholder and management interests, and to ensure the remuneration package for senior management is competitive and reflects market best practices. Based on intensive benchmarking, this revised Long-Term Incentive is now based on the two key performance indicators relative shareholder return and economic profit reflecting both the external and internal view. The new Clariant Long-Term Incentive Plan (CLIP) was granted for the first time in April 2019. Participation in the CLIP is limited to the Executive Committee and senior managers of Management Level 1 – 4 (approximately 1.4% of employees). The CLIP implementation eliminated the bonus deferral with matching shares and resulted in a shift from short-term incentive remuneration to long-term incentive remuneration.

The two previous Long-Term Incentive Plans, the Performance Share Unit (PSU) Plan and the Group Senior Management-Long-Term Incentive Plan (GSM-LTIP/Matching Share Plan), were discontinued and granted in 2018 for the last time.

3. Compensation of members of the Executive Committee

The Executive Committee participates in the same compensation elements as Clariant’s senior managers, receiving a fixed annual base salary, an annual cash bonus, and Long-Term Incentives. The annual bonus is based on achieved results for the particular financial year according to the criteria mentioned above with respect to the Group Management Bonus Plan. For further information on the compensation of the and the Board of Directors, see the separate .


Compliance is a key element of Corporate Governance. It refers to compliance with the law and directives as well as with voluntary codes within the company. View entire glossary

Executive Committee

Management body of joint stock companies; at Clariant the Executive Committee currently comprises four members. View entire glossary

Clariant Excellence (CLNX)

Clariant Excellence is an initiative launched in March 2009 with the aim of establishing a culture of continuous improvement. The initiative is based on a change in mindset among all employees and at all levels of the company. It aims to improve competitiveness through gains in efficiency and to create added value. The four elements of Clariant Excellence are: Operational, Commercial, People, and Innovation Excellence. View entire glossary

Executive Committee

Management body of joint stock companies; at Clariant the Executive Committee currently comprises four members. View entire glossary