DSM • Annual Report • 2016 • Governance

  • Value creation

Key observations:

In order to illustrate “how remuneration and incentives are linked to value creation in the short, medium and long term” (International <IR> Framework, para. 4.9), in its Integrated Annual Report 2016 Royal DSM describes, through narratives, its remuneration policy. In particular, to continue its ability to “attract, reward, motivate, incentivize and retain qualified and expert individuals” (p. 114) the remuneration package for the Management Board is designed to balance short-term operational performance objectives with medium and long-term ones of “creating sustainable value within the company, while taking into account the interests of its stakeholders” (p. 114). A base salary is combined with a mix of short and long-term incentives, equal in nature and linked to financial as well as to sustainability targets.