IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 to be attributed will result from an annual performance evaluation that will take into account quantitative indicators - in line with the strategic objectives and business plans approved by the Company’s Board of Di- rectors and qualitative indicators considered fundamental for the sus- tainability of the business in the long term; (III) quantitative objectives weigh 50% in the calculation of individual performance and reflect performance related to the company’s real growth and the return generated for shareholders. Financial perfor- mance indicators will be weighted in accordance with the Company’s strategic priorities, the business context and the evolution of results; IV) qualitative individual objectives weigh 50% in the performance calcu- lation. The Committee assesses the actual implementation of transversal projects to the Group’s companies that ensure future business competi- tiveness and long-term sustainability. The measurement indicators are as follows: strategic vision and allocation of resources/investments; or- ganizational health, talent agenda and multi-stakeholder relationships; (V) the allocation of the annual variable component must meet the fol- lowing criteria: a) if the individual performance does not meet any of the objectives set (quantitative or qualitative), there will be no allocation of the annual variable component; b) if the individual performance is equal or superior, in all or some of the objectives, the variable remuneration may fluctuate between 50% and 100% of the maximum value foreseen for the variable remunera- tion. (VI) the performance evaluation process of the executive directors is annual, based on concrete evidence that are made available to the Re- muneration Committee for regular monitoring of the level of compliance with the approved targets. In accordance with established procedures, the annual performance cycle is concluded with the attribution of the variable component in the first half of the year following the one as- sessed, after the results for the year have been determined. The total remuneration (fixed and variable) must ensure a competitive amount in terms of the market and serve as an incentive for individual and collective performance, through the definition of ambitious goals with a view to guaranteeing growth and adequate levels of return for shareholders. 307