Remuneration report for 2022

Remuneration policy

The current remuneration policy for the members of the Board of Management was adopted by the General Meeting of Shareholders of Stedin Group in 2020 and is aligned with the general maximum remuneration laid down in the Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act. The remuneration comprises a fixed annual salary (12 monthly salaries plus 8% holiday pay) and a package of other elements of remuneration composed in part in accordance with the wishes of individual Supervisory Board members. Those other elements include participation in the ABP pension scheme, 30 days of leave annually, the option of participating in the group health insurance and invalidity insurance, an untaxed monthly expense allowance and a 100% electric lease car. The fixed annual salary is determined with effect from 1 January of each year by the Supervisory Board, taking into account the current maximum remuneration under the WNT.

The general maximum remuneration under the WNT also provides the basis for the remuneration of the members of the Supervisory Board. In the remuneration policy for the Supervisory Board, it is laid down in accordance with the WNT that the remuneration for the chair and for the members of the Supervisory Board is 15% and 10% of the general maximum remuneration under the WNT, respectively.

Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act (Wet normering topinkomens, WNT)

The WNT is applicable to the grid manager Stedin Netbeheer B.V. The members of the Board of Management, as the highest executive body of Stedin Netbeheer, qualify as senior executives of Stedin Netbeheer B.V. pursuant to the WNT. Since they are in the service of Stedin Groep Personeels B.V., they qualify as senior executives without employment. Koen Bogers entered the employment of Stedin Groep Personeels B.V. upon the start of his contract on 1 May 2021. The contracts of the other three Supervisory Board members were transferred to Stedin Groep Personeels B.V. effective 1 July 2021.

Under the WNT, the members of the Supervisory Board of Stedin Group qualify as senior supervisory directors of Stedin Netbeheer N.V.

The WNT transitional rules do not apply at Stedin Netbeheer B.V. The reporting on the WNT remuneration of Stedin Group is part of the Notes to the consolidated financial statements, 6.2 WNT compliance for 2022 by Stedin Netbeheer B.V.

The WNT does not apply to other employees of Stedin Group. Like the Supervisory Board members, all employees are in the service of Stedin Groep Personeels B.V. The requirement to report on other executives who receive remuneration exceeding the individually applicable threshold amount (the WNT standard of €216,000, calculated in proportion to the scope of the employment) only applies to employees of Stedin Netbeheer N.V. As disclosing this information on an individual basis regarding employees of Stedin Groep Personeels B.V. may constitute a breach of their privacy pursuant to the General Data Protection Regulation (GDPR), we do not report this information. The maximum salary, including 8% holiday allowance, for positions reporting to the Board of Management was €167,500 in 2022. Stedin Group also applies the maximum hourly rate under the WNT as the maximum rate for external staff hired to temporarily fill senior management positions. In 2022, that was €206 per hour.

No rights to subscribe to or acquire shares in the capital of the company or a subsidiary have been granted to members of the Board of Management or Supervisory Board of Stedin Group. Nor have any loans, advances or guarantees been provided to the members of the Board of Management or Supervisory Board of Stedin by the company, its subsidiaries or the companies whose financial information is consolidated by Stedin.

Remuneration ratio

The ratio between the highest remuneration and the median remuneration increased for the first time in 2022. The ratio was 3.34 in 2022, which is 4.2% higher than in 2021 (3.29). This increase was mainly attributable to the 2.1% decrease of the median remuneration. The ratio between the increase of the highest remuneration and the decrease of the median remuneration was -15.5%. The decrease of the median remuneration is due in part to the large group of people from other professions entering employment and being trained as fitters.

The remuneration ratio was determined by reference to the annual pay for pension purposes of employees working at the business units that were part of Stedin Holding N.V. as at 31 December 2022. The annual pay for pension purposes is a uniform and objective remuneration concept that includes 12 months’ full-time salary, 8% holiday allowance and variable payments, such as payments for on-call shifts and emergency repair shifts, one-off payments for service anniversary bonuses and payments at the end of the employment, among other things.