Remuneration policies for the next financial year

In 2020, the Supervisory Board evaluated the remuneration policies for the Board of Management and Supervisory Board. The Supervisory Board considered input from stakeholders, the requirements of the EU Directive on the encouragement of long-term shareholder engagement (SRD II), and the Dutch regulation implementing this directive. As a result, a new policy was prepared for the remuneration of the Board of Management, to be submitted for approval at the AGM in April 2021.

Remuneration Policy for the Board of Management

Since 2017, AkzoNobel has been focused on its Winning together: 15 by 20 strategy to deliver 15% ROS (excluding unallocated cost) in 2020. The company’s new Grow & Deliver strategy, including ambitions for 2021-23, balances growth (at least in line with relevant markets) and profitability improvement (an average 50 basis points increase in ROS per year). The Supervisory Board has concluded that the Remuneration Policy for the Board of Management should provide adequate and balanced remuneration in support of the new company strategy. For that purpose, a revised Remuneration Policy will be submitted to the AGM. The updated Remuneration Policy seeks to:

• Attract and retain high caliber people to the Board of Management by offering competitive remuneration against a European peer group
• Incentivize realization of the company’s Grow & Deliver strategy and the short- and long-term ambitions through aligning metrics and targets around growth and delivery in STI and LTI
• Deliver sustainable value creation for shareholders and other stakeholders, by setting focused LTI metrics and simplifying share matching

Remuneration Policy for the Supervisory Board

The Supervisory Board has concluded that the Remuneration Policy for the Supervisory Board – adopted by the AGM in 2014 and approved with some limited changes in 2020 – is in line with the objectives of the company, but a proposal is made to use a European peer group going forward to benchmark the remuneration levels it provides. This change in the Remuneration Policy will be submitted to the AGM in April 2021.