Annual and
Sustainability Report
2010
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The main purpose of CCR’s senior management compensation policy is to attract, retain and integrate the best professionals in the market – but without jeopardizing or creating discrepancies between the company’s performance and the salaries paid to members of the company’s management team. In 2010, the huge differential was planning, whereby beginning the following year, socioenvironmental matters are to be included in the criteria for defining the variable compensation paid to management.

Each company management group has a compensation structure. In the case of board members, whose function is one of supervision and guidance, it is 100% fixed and aligned with the market average, while annual adjustments depend on the index defined on the base date. The compensation of the Fiscal Council is also fixed, but cannot be less that 10% of that attributed to the executive officer of the group.

Since it deals with achieving results that reflect the company’s strategic planning and ensure its future, the compensation of the executive board of CCR is structured into four categories, so as to share rewards with each director and repay them for exceeding targets. These are: fixed, variable, indirect and situational. The first is represented by the base salary, which is set in line with market values and the professional’s position and representativeness.

In 2010, socioenvironmental matters are to be included in the criteria for defining the variable compensation paid to management.

Variable compensation comprises the profit sharing plans (PPR), mechanisms for sharing the wealth created by fulfilling or exceeding targets. Indirect and situation compensation, in turn, are social benefits (medical and dental assistance, life insurance, meals, vehicles, etc) and occasional allowances for housing and re-equipping (for beneficiaries who have transferred their families or residence to another location as a company requirement).

A further benefit, although one that does not qualify as compensation, is the Long-Term Incentive Plan, or ILP, a value-creation policy that enables some CCR Group executives to acquire rights with the company, based on share price appreciation, cash generation and dividends distributed.