Solvay’s board of directors cites several arguments in shareholder documents as to why Kadri deserves that huge bonus. This praises her “commitment to the completion of the partial demerger project”, but also “years of exceptional performance at the head of the group in volatile times of high inflation, geopolitical tensions and macroeconomic uncertainties”.
Baeten and his colleagues at the Executive Remuneration Research Center have calculated that Kadri has created more than 20 percent (worth 1.8 billion euros) in shareholder value for Solvay since she took office in 2019. This is evident from calculations based on the so-called “adjusted stock price”. “The most reliable pillar in this area,” Baeten explains.
“For comparison: the BEL20 has fallen by 4.6 percent in the same period. Solvay has indeed done very well in recent years. People sometimes wonder whether high bonuses are also accompanied by good performance: that is absolutely the case here .”