Paying for sustainable performance
Winterthur, February 22, 2024
Dear Shareholder,
On behalf of the Board of Directors and of the Remuneration Committee (RC), I am pleased to present the 2023 Compensation Report.
2023 has been a successful year for Sulzer. Against the backdrop of a challenging global economic and political development, Sulzer has met and exceeded its ambitious financial objectives. In July 2023, Sulzer even significantly increased its guidance to the financial markets. Also, these even more ambitious targets were met in the upper range of the target bands. In 2023, Sulzer conducted an in-depth analysis of markets, economic and technology trends. Sulzer mapped these trends with its portfolio of products, services, and competencies. As a result, Sulzer has decided to adjust its strategy for the entire Group. This evolved strategy is comprised of two main pillars:
- Organic growth in current and adjacent markets with a focused portfolio of products and services
- Operational excellence across the entire Sulzer value chain
Our Executive Committee has come together in the current set-up relatively recently and mainly through internal promotions. The total compensation for 2023 was entirely within the maximum compensation approved by the AGM 2022. Given our excellent performance in 2023, coupled with our ambition for Growth and Excellence through our “Sulzer 2028” strategy, we must ensure that our Executive Committee is compensated in a way that both rewards and stimulates growth and value creation for our shareholders. This entails reflecting on growing roles and responsibilities as well as evolving market trends, consistent with company performance.
The AGM 2023 elected three new members to the Board of Directors and increased the total number of members on the Board of Directors to seven. The Board of Directors work focused on accompanying and guiding the strategy work as well as assuring the correct oversight and governance. Sulzer established a Governance Committee chaired by Markus Kammüller, who also serves as Lead Independent Director (LID). The Remuneration Committee is chaired by myself.
The compensation paid to the Board of Directors in 2023 was well below the amounts previously approved by the AGM for the period in question. Going forward, the Board of Directors compensation should also stay aligned with the ambitious long-term growth and value creation for shareholders.
Following an excellent 2023 and based on a clear and compelling strategy that points Sulzer toward a prosperous future, I thank you on behalf of Sulzer, the Board of Directors and the Remuneration Committee for your continued trust in our company.
Sincerely,
Dr. Hariolf Kottmann
Chairman
Remuneration Committee