2. Compensation Concept

To support the attraction, motivation, and retention of qualified and committed employees throughout the organization, Clariant’s remuneration policy is based on the following main principles:

• Alignment with Business Strategy: Remuneration com­ponents are designed to support the execution of Clariant’s Business Strategy.
• Competitiveness: Clariant conducts regular benchmarking studies to ensure compensation levels are in line with market practices.
• ComplianceComplianceCompliance is a key element of Corporate Governance. It refers to compliance with the law and directives as well as with company codes and ethical business practices and behaviors.View entire glossary : Clariant’s compensation practices always follow local regulations, such as laws and collective union agreements.
• Internal Fairness: The compensation policy and practices ensure consistency and a fair treatment of employees working for Clariant.
• Performance-based Pay: Clariant’s remuneration co­mponents incentivize business and individual performance.
• Transparency: Remuneration components are made transparent to the individual and the organization.

In order to uphold these principles, the Compensation Committee analyzes and discusses market developments at regular intervals and considers the implications of these developments for Clariant. The Articles of Association (Art. 26 ss; www.clariant.com/en/Company/Corporate-Governance/Articles-of-Association) of Clariant Ltd therefore reflect Clariant’s commitment to market practice.