For the third consecutive year, Siemens Gamesa (SG) will once again change the remuneration policy of the board of directors and the executive team. The news will have to be approved by the shareholders’ meeting that will take place in 2021, as happened in 2019 and 2020.
The changes apply by law after the aforementioned previous stage and will be applied to the salaries of directors and executives during the period from 2022 to 2024. With a charge to the year 2021, starting on October 1 according to the accounting calendar of SG, Andreas Nauen , CEO since last June, will receive a fixed amount of 715.00 euros plus an equivalent variable amount if he reaches his objectives.
If the “performance is extraordinary”, according to the documentation sent by SG to the National Securities Market Commission (CNMV), Nauen could enter twice as much through the variable channel, with which his emoluments would exceed 2.1 million.
Nauen and his team are focused on returning profitability to SG, which in 2019 lost 918 million. It has an order book of 30,248 million from which the renewable group wants to make the most of it.
An objective that involves internal adjustment (a factory has already closed in Spain and another two in the rest of Europe), especially in the onshore wind division. Nauen has commented that “you have to opt for profitability over volume.” He has already sent the message of cost reduction to suppliers.
The CEO of the renewable corporation has obtained 175,400 shares as part of his salary in the last three years. A package of securities that has a market value that exceeds five million, according to the current price level of SG (above 29 euros per share).
Nauen will have to keep those titles without selling them, according to the conditions of the Siemens subsidiary. Regarding the remuneration of the members of the board of directors during the year 2021, the president will pay 250,000 euros, in addition to another 140,000 euros for their participation in the different commissions of the group and an additional 5,800 euros for per diems.
The annual remuneration of non-executive directors will be set at 80,000 euros. To which must be added the income if they participate in the audit commission (60,000 euros) and another 40,000 for the rest of the commissions. The allowances for each session of the commissions will be 2,000 euros. If the participation is telematic, the allowances are reduced to 50%. Three SG directors, who sit on other SG affiliate boards, have waived the above amounts.
SG signed Garrigues and Willis Towers Waber as advisers in 2020. The former participated in the remuneration policy approved at this year’s shareholders’ meeting and in the promotion of Andreas Nauen, who was previously head of the offshore wind division. He also assisted in the removal process of the former CEO, Markus Tacke.
The former CEO received 1.6 million in severance pay, one of them for failing to meet the notice deadlines by SG and another for the agreement not to work for a year in companies of direct competition to the wind turbine manufacturer.