Strengthening of a high-performance culture and well-being of our employees based on integrated and dynamic people management processes that take into account aspects such as meritocracy, career development, knowledge management, diversity, inclusion, quality of life and human rights, among other factors.
The company’s compensation policy aims to attract and retain professionals who are in line with its principles and values and with the shareholders’ objectives.
To this end, Suzano bases its policy on monitoring the external environment and annually compares its salary scale with the benchmark markets, composed of companies competing in the segments in which the company operates, Brazilian multinationals, publicly traded companies, or companies whose compensation strategy is similar to Suzano’s.
The strategy of Suzano’s compensation policy is to constantly seek to attract and retain talent that can add value to its activities, generating greater profitability for its shareholders. The compensation proposed by the company to the Executive Board is based on a compensation plan linked to the market value of its shares. This strategy not only makes it possible to remunerate such talent in a way that is competitive with the market, but also generates in the executives a greater feeling of ownership, since the appreciation of the shares represents a personal gain. On the other hand, any depreciation in the value of the shares on the market can have a significant impact on their personal compensation, in order to ensure greater alignment, within a value-creation strategy in the medium and long term.
Regarding short-term variable pay, Suzano also conducts profit sharing distribution based on targets that are in line with its strategy and that are suitable for each portion of its employees.
Certain employees who have direct or indirect and active responsibility in the company’s long-term strategy are also offered the possibility to participate in a long-term incentive program linked to the appreciation of the company’s shares, such as phantom shares.
For eligible executives, Suzano offers a Common Stock Option Program, with pre-defined conditions that are in line with the company’s long-term goals.
The purpose of both programs is to stimulate the expansion of the company and the achievement of the business goals established, based on the creation of incentives that aim at a greater alignment of executives, administrators, and employees with their goals.
Long-term goals are cascaded down to the Executive Directors according to their responsibilities, always including short-term actions (expected evolution and priorities). These goals impact the Variable Pay of these directors by at least 10%, and may achieve higher percentages depending on the number of goals cascaded to the executive.
Process for determining remuneration
Suzano has a salary scale based on the labor market, competitors, sectors, leading companies, etc. In addition, it offers equal salaries for operational positions according to the unit in which they are located. The positions are evaluated using the Korn Ferry (Hay) methodology and placed within our salary scale, thus defining their salary range.
For Executive Directors and above, there is a Compensation Committee formed by two external and independent members (consultants) and one executive from the Board of Directors who are responsible for approving their remuneration. For Functional Directors and below, all approvals are granted by the corresponding competencies together with the compensation area.
The committee is responsible for approving the salary scales, raises and definitions of compensation for the group of executive directors, presidency and board members. In addition, the compensation area conducts salary surveys with several external consultants to support the decision-making of all audiences (board members, presidency, executive board, and below). Proposals and revisions are approved by the Compensation Committee and submitted to the Ordinary General Assembly (AGO) each year.