CEOs & Executive Performance and KPIs
GC evaluates the performance of CEO, Executives and Employees annually using Corporate Key Performance Indicator (KPI). The performance is assessed based on: Initiatives (70%), which support corporate KPIs and special assignments and core behavior (30%), which is evaluated based on four core behaviors of GC-SPIRIT.
This four core behaviors fosters the employees’ behaviors to support company’s sustainability performance.
|2017 - 2027 Corporate KPI||CEO||Executives||Employees|
|1. Step CHANGE||Strengthen Competitiveness|
|2. Step OUT||Leader in Global petrochemical industry|
|3. Step UP||Sustainability Role Model (Global & Local)|
|4. Enabler and Governance||Strengthen internal drivers for efficient business operation|
GC has set the KPIs in short-term and long-term as evaluation criteria to assess the performance CEO and Executives. The KPIs are inclusive of financial return performance indicators (e.g. EBITDA, Net Profit, Return on Invested Capital: ROIC), relative financial performance indicators (e.g. Divided Paid, Dividend Per Share, Total Shareholder Return (TSR), Tobins Q/Q ratio, Behavior and Individual Goals), external perception performance indicators (e.g. social satisfaction rate, etc.), environmental performance indicators (e.g. energy efficiency, GHG emissions reduction, etc.), and social performance indicators (e.g. Process Safety Event – Tier 1, etc.).
The success of these KPIs are reflect to short-term and long-term remunerations for CEO and executives which GC has transparency and reasonable process to determine their compensation. The short-term remuneration comprises salary, bonus and other benefits. The long-term remuneration (e.g. bonus based on long-term performance, etc.) will be awarded to the CEO and executives over a four years vesting period.
GC discloses the fixed and variable compensation of the CEO and executives in the below table
|2020 Executive Compensation||Executive|
|CEO||Other Top Executive1
(4 persons excluding CEO)
|Provident Fund (THB)||1,020,000||4,326,349|
GC’s Top Executives consists of: 1) President; 2) Chief Operating Officer - Center of Excellence; 3) Senior Executive Vice President - Upstream Petrochemical Business; and 4) Senior Executive Vice President - Downstream Petrochemical Business.
Furthermore, GC discloses the mean and median of the annual compensation of all employees and the ratio between the mean and median employee compensation and the total annual compensation of the CEO in the table below
|Employee Compensation (in THB)||Median Employee Compensation||Mean Employee Compensation|
|Median/mean annual compensation of all employees, except the CEO||1,584,000||1,960,000|
|Ratio of the mean or median employee compensation and the total annual compensation of the CEO||10||8|
GC applies Clawback Provision, which is referred from Section 85 of Limited Public Company Act, B.E.2535 (1992) and Section 89/7 and 281/2 Securities and Exchange Act, B.E. 2551. The Act has stipulated that the executives shall perform their duties with fully responsibility, strictly comply with the laws and corporate rules, and respond to the board’s and shareholders' agreement throughout the business operation. In case any director or executive fails to perform their duties and involve in misconduct according to these Sections, they will be required to return their bonus and compensation and may be subject to civil penalty and/or criminal punishment.