Investor Presentaiton
Compensation Policy
GRI 2-19, 2-20, 2-21
59
The Administrator Appointment and Compensation
Policy lays down the compensation of the members
of the Board of Directors, Fiscal Council, Advisory
Committees and Executive Board. The document
outlines the criteria for assessing the skills required
from the candidates to comprise these groups, which
include: reputation, commitment to our culture and
values, academic background, professional experience,
and freedom from conflicts of interest with AES Brasil.
To set the compensation of the Board of Directors and
Executive Board members, we rely on salary surveys
contracted from specialized independent consultants.
These surveys take into consideration benchmark studies of
positions with similar duties and responsibilities in companies
of the same industry or companies that have good human
resources and/or corporate governance practices. The
results are compared to our practices and evaluated
by the Compensation and Personnel Committee, which
is responsible for making recommendations to the
Board of Directors, which approves possible changes or the
maintenance of the proposal. The proposal for management
overall compensation is annually approved by the Board
of Directors and the Annual Shareholders' Meeting.
The statutory and non-statutory executive board
compensation includes fixed monthly payments, short-
term bonus and benefits in line with market practices for
executive level, e.g., designated vehicle, healthcare plan,
dental plan, life insurance, meal voucher, annual checkup
and private pension plan. The Statutory Executive Board
is eligible to Long Term Incentives (LTI). The variable
compensation (bonus) considers three performance
indicators: safety, financial results, and strategic results.
Different weights are applied according to the targets
achieved/ exceed in each of these items
In the case of termination without cause and that was
initiated by the Company, statutory executive officers
will be entitled to the payment of compensation
equivalent to six times their monthly salary minus
withholding income taxes and social contribution (INSS)
and to continue with their medical health plan, extensive
to their legal dependents, for a period of up to six
months. They will also be entitled to receive, at no cost,
executive outplacement consulting services, for a period
of six months, through a contract with a specialized
company of recognized quality in the market, to be
chosen by us. The contractual arrangements and
Variable compensation
Resulting from our commitment to sustainability,
in 2022, the individual management contract for
the CEO and the Executive Board included targets
related to the performance of ESG practices,
which vary for each Executive Officer. In 2022, the
CEO's variable compensation, in particular, had the
following breakdown:
40% of the CEO's variable compensation was
linked to ESG criteria, divided into:
5% Diversity
5% Organizational climate
30% Growth in renewables
insurance policies do not provide for compensation or
indemnity mechanisms for cases of retirement.
We have relationships with nine labor unions,
recognizing their role as official representatives of
our employees, and have established collective
bargaining agreements that are annually discussed on
their base dates.
2022 Integrated Sustainability Report > Responsibility
aes BrasilView entire presentation