Jerónimo Martins considers 100% cash short-term bonus aligns the executives' interests with those of the shareholders in the long term

The remuneration policy of Jerónimo  Martins is defined by the Remuneration Committee, the members of which are not Directors and are elected by the Shareholders' Meeting for a period of 3 years.  All current members are independent from the Company and its major shareholders.

ECGS discovers that the variable component is defined by the Remuneration Committee each year, upon proposals of the Chairman of the Board, who is also the CEO. The executive variable remuneration is exclusively made of a short-term incentive, fully paid in cash and linked to the annual results in terms of: EVA, share market price and implementation of the Group's Strategic Plan.

The executive remuneration does not include any long-term incentives, deferred variable components, malus clauses or claw-back mechanisms. The Remuneration Committee also decided not to set any limits to the maximum bonus payable to the executive Directors.

Even more surprisingly, the Remuneration Committee, based on a study conducted in 2011, considers that the current remuneration structure is adequate to align the executives' interests with those of the Company in the long term.

ECGS has serious concerns over the executive variable, as it is exclusively paid in cash and entirely based on annual performances, so that the executives' interests are not aligned with those of the shareholders over the long term. Furthermore, there are no limits to the potential annual bonus and performance criteria are not quantified.

As the Company did not achieve the minimum targets (not disclosed), the Remuneration Committee approved not to pay the bonus in 2014.