EU Sustainable Finance Disclosure Regulation
In alignment with Article 5 of the Sustainable Finance Disclosure Regulation (SFDR), ensures transparency in how sustainability considerations are integrated into our remuneration structures. This policy outlines how we embed sustainability risks and principles of responsible investing into our compensation practices, reinforcing our commitment to long-term value creation and stakeholder alignment.
Integration of Sustainability into Remuneration
Our remuneration policy supports a responsible, transparent, and performance-driven culture that motivates our team while addressing environmental, social, and governance (ESG) risks.
Given the long-term nature of private equity investing, our approach considers the future orientation of each investment and the lasting impact on subsequent owners or stakeholders. This future-focused mindset is inherently tied to our remuneration framework.
Our guidance relating to risk taking
Cleon Capital considers sustainability as well as other ESG aspects to be integral parts of our Due Diligence, risk valuation and as such, our entire investment decision process.
The identification and monitoring of sustainability indicators is of upmost importance as it protects our portfolio, positively impacting performance and consequently remuneration.
Remuneration Structure
We employ a structured remuneration framework aimed at aligning the interests of our employees with those of our investors and shareholders. Key components of our approach include:
Fixed Compensation: A base annual salary reflective of the role and market benchmarks.
Variable Bonus: An annual performance-related bonus, influenced by individual contributions, team performance, and financial outcomes.
Long-term Incentives: A forward-looking component designed primarily for investment professionals, rewarding sustained contributions over a 5–10 year horizon. This mechanism promotes deeper alignment with our strategic priorities and reinforces a sustainability-oriented culture.
Our Remuneration Committee—comprising representatives of our principal shareholders—reviews and approves these packages to ensure fairness, competitiveness, and alignment with our values.
Principles of Fairness and Equality
We are firmly committed to equitable compensation and uphold the UN Sustainable Development Goal (SDG) of Gender Equality. Our compensation practices actively prevent gender-based pay disparities and reflect our dedication to fairness and inclusivity across all levels.
Risk Considerations and ESG Alignment
Sustainability and ESG factors are integral to our investment philosophy and decision-making. These dimensions are carefully assessed during due diligence and influence our risk management processes. Our compensation structures reward those who contribute to strengthening these areas, fostering a culture that values risk-aware, responsible investing.