In conversation with our chairman
Remuneration Committee Chairman Ad Melkert reflects on 2023.
How do you look back on 2023 as chairman of the Remuneration Committee?
2023 was a year with many faces due to the ongoing challenging macroeconomic developments. On the one hand, we outperformed on free cash flow, climate impact reduction and kept our leading position in the market. On the other hand, normalised EBIT, employee engagement and quality levels ended up lower than expected. Furthermore, at the beginning of 2023, two collective labour agreements were agreed with the trade unions. From a Remuneration Committee perspective, 2023 was earmarked for the evaluation of the remuneration policy of the BoM and the SB in order to keep attracting, rewarding and retaining qualified Board members in the future.
Can you elaborate on the evaluation of the remuneration policies as mentioned in the previous question?
The evaluation process started with a review of the remuneration policies’ guiding principles (which for the BoM are alignment, transparent, compliant, simple, and sustainable, and for the SB alignment, independence, transparent, compliant, and simple). We considered the guiding principles as still fit for purpose and reflective of our view on remuneration. Subsequently, we reviewed the peer group to ensure the composition is aligned with PostNL’s current business profile. Based on the guiding principles and updated peer group, we performed a market assessment. In this process, we thoroughly considered PostNL’s internal perspective and the societal context we operate in. This resulted in our proposal, which we have discussed extensively with shareholders (representatives), (proxy) advisors and our Central Works Council. Taking into account their valuable input, we have agreed upon new remuneration policies which will be put forward to be voted on at the 2024 AGM.
Which other topics have been discussed in the Remuneration Committee in 2023?
At the start of the year we discussed, amongst other topics, the general base salary adjustment and the realisation of the variable remuneration. This involved an assessment on the remuneration outcomes for the BoM, but given the current remuneration policy structure and governance framework, the assessment did not result in any adjustment to the BoM's variable remuneration outcome. Furthermore, we discussed the remuneration-related impact of the new Corporate Governance Code and the newly installed ESG Committee. Lastly, taking into account the 99.39% votes for the remuneration report 2022 and the positive feedback received from the stakeholder engagement, no material adjustments were implemented in the remuneration report 2023.
On behalf of the Remuneration Committee, I want to thank all stakeholders for their valuable discussions and look forward to presenting updated remuneration policies at the 2024 AGM.