Executives Compensation and Ownership
CEOs & Executive Performance and KPIs
GC evaluates the performance of Chief Executive Officer (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. These four core behaviors foster employee behaviors to support company’s sustainability performance.
These four core behaviors foster employee behaviors to support company’s sustainability performance.
| 2017 - 2027 Corporate KPI (Long-term Performance Metrics) |
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 | Strengthen internal drivers for efficient business operation | |||
GC has set short-term and long-term KPIs, in line with the corporate indicator index 2017-2027, as evaluation criteria to assess the performance of CEO and top Executives. The KPIs are inclusive of financial return performance indicators (e.g. EBITDA, Net Profit, Return on Invested Capital: ROIC, etc.). GC has also monitored relative financial metrics (e.g. Dividend, Dividend per share, Total Shareholder Return (TSR), Tobins Q/Q ratio, key behavioral and personal performance indicators, etc.), 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 is reflected in short-term and long-term remunerations for CEO and top executives which GC has transparency and reasonable process to determine their compensation. The short-term remuneration comprises salary, bonus and other benefits, while long-term compensation is granted to the CEO and senior executives based on performance over the duration of their tenure, with a four-year time vesting period for variable CEO compensation.
Executive Compensation
GC discloses the fixed and variable compensation of the CEO and top executives in the below table. (as of December 31, 2024)
| 2024 Executive Compensation | Executives | |
|---|---|---|
| CEO (1 person) |
Other Top Executives1 (4 persons excluding CEO) |
|
| Salary (THB) | 13,522,000 | 34,544,000 |
| Bonus (THB) | 3,844,000 | 16,170,000 |
| Provident Fund (THB) | 1,180,000 | 4,988,000 |
| TOTAL (THB) | 18,546,000 | 55,702,000 |
Note:
- GC’s Top Executives consists of 1) President 2) Chief Operating Officer - Value Added Products 3) Chief Operating Officer - Base and Intermediate Chemicals and 4) Chief Operating Officer - Center of Excellence
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: (as of December 31, 2024)
| Employee Compensation (in THB) | Median Employee Compensation | Mean Employee Compensation |
|---|---|---|
| Median/mean annual compensation of all employees, except the CEO | 1,694,000 | 2,005,000 |
| Ratio of the mean or median employee compensation and the total annual compensation of the CEO | 10.95 | 9.25 |
In cases where an executive is found to have failed to perform their duties with responsibility, due care, and integrity, GC may take appropriate action, including claiming damages, withholding benefits, or reclaiming benefits that have already been paid. These may include salary, bonuses, or other entitlements, based on the executive’s performance not meeting GC’s established criteria and regulations. The executive may also be subject to civil and criminal liability. These measures are aligned with the clawback provision in Section 85 of the Public Limited Companies Act B.E. 2535 (1992) and Sections 89/7 and 281/2 of the Securities and Exchange Act B.E. 2535 (1992), as amended in B.E. 2551 (2008).
Stocks Holding of Executives
GC clearly incorporates good practices of management ownership for the board and top executives into the Corporate Governance and Business Code of Conduct Handbook, in order to allow our CEO and top executives to own stocks of the company in compliance with laws and other regulations. The management ownership will create a long-term benefit, which includes creating motivation for executives to effectively drive the organization towards goal’s achievement as well as to raise a corporate loyalty. CEO and top executives must strictly comply with best practices on stock trading as stipulated by the Securities and Exchange Commission (SEC) by not using internal non-public information to facilitate his/her stock trading (insider trading). Additionally, they must not disclose internal non-public information to others for the benefit of trading the company’s shares to ensure compliance with the Securities and Exchange Act, B.E. 2535 (1992) and best practices issued by the Stock Exchange of Thailand and SEC.
The shares held by the CEO and top executives as of December 31st, 2024 have been disclosed as shown in the below table and in Form 56-1 One Report 2024.
| Position | Name - Last Name | Multiple of Base Salary |
|---|---|---|
| CEO | Mr. Narongsak Jivakanun* | 0 |
| Average shareholding for top executives | Mr. Toasaporn Boonyapipat* Mr. Pirun Krimwongrut* Mr. Pornsak Mongkoltrirat* Mr. Saroj Putthammawong* Mr. Thitipong Jurapornsiridee* |
0.48 |
Remark: *executives in accordance with Securities and Exchange Commission (SEC)’s definition