4.6. Remuneration policies and incentive systems

GRI 102-38, GRI 102-41

Elia group’s remuneration policy focuses on attracting and retaining the best talent, rewarding performance and supporting a culture of feedback and continuous development where possible.

Staff remuneration is aligned with job requirements and performance, regardless of gender, and is supplemented by extensive social benefits and a company pension scheme.

We ensure equal pay for equal work via a mechanism of reference salaries that are market benchmarked. Every job description is related to a salary category (which are discussed during “weighing committees”).

In accordance with local legislation, Elia Group subsidiaries are obliged to prepare a report which transparently outline staff remuneration. The aim of this legislation is to ensure staff receive equal amounts of remuneration when they carry out equal amounts of work and, more specifically, it aims to ensure that the gap is avoided.

The remuneration of employees includes success and performance-related elements that provide them with incentives to achieve our collective corporate targets as well as their individual targets. All employees receive regular performance reviews and career development sessions. Some collective targets also relate to the environment of sustainable corporate governance, such as compliance with occupational health and safety and, at 50Hertz Transmission Belgium, successful social dialogue. In addition, with the Elia Group share programme, employees have the opportunity to benefit from the business’ success during the previous financial year. For the ninth time in 2021, every employee was offered shares at a preferential price. Elia Group SA/NV transparently discloses the total remuneration of each of the members of the Board of Directors and of the Executive Management Board in its consolidated financial statements; these include the fixed and variable total remuneration of management staff as well as their company pensions and other benefits. The basic features of the remuneration system are explained and detailed in the corporate governance statement included in the 2021 Financial Report.

ELIA IN BELGIUM

Elia negotiates collective agreements for its ‘non-exempt’ staff11 with other organisations across the energy sector. For ‘exempt’ staff members, their salary is based on internal equity combined with market competitiveness, their level of maturity, their respect for corporate values and safety leadership, and performance – all irrespective of gender.

In 2021, the Sustainalytics risk rating score has been added as a new sustainability-related collective target to the variable remuneration of the staff and Executive Management Board of Elia Transmission Belgium SA/NV.

Elia transparently discloses the total remuneration of the members of the Board of Directors and of the Executive Management Board of Elia Transmission Belgium SA/NV and Elia Asset SA/NV in its consolidated financial statements; these include the fixed and variable total remuneration that management staff receive as well as company pensions and other benefits.

Elia is willing to disclose its annual total compensation ratio (as is carried out by 50Hertz). We are working internally on the calculation method and making every effort to achieve this soon.

11 non-exempt staff are entitled to be paid for the overtime work they carry out; exempt staff are not paid for this overtime - they are compensated through other means

50HERTZ IN GERMANY

Fair remuneration for all employees is a matter of course for 50Hertz. Additional offers for retirement benefits and health round off the offer they provide to staff as an attractive employer. The remuneration policies will be further developed in line with future requirements in order to ensure it remains as an attractive employer. The Mining, Chemical and Energy Industrial Union (IG BCE) negotiates collective agreements with the Employers’ Association of Energy and Utility Companies (AVEU). For the first time since 2013, a separate collective agreement was negotiated for 50Hertz in 2020 and the relevant parties decided to continue discussions surrounding general working conditions (skeleton wage agreement). Remuneration in line with requirements and performance is supplemented by extensive benefits and a company pension scheme.

50Hertz discloses the total remuneration of its management in its consolidated financial statements in a transparent and voluntary manner; these include the fixed and variable total remuneration of management staff, as well as their company pensions and other benefits.

The pay ratio (which expresses the relationship between the remuneration paid to the highest-paid employee and the median salary of all employees) is 7.7.