ArcelorMittal’s board of directors receive a fixed remuneration approved every year by the annual general meeting of shareholders. Our senior managers' remuneration policy aims to achieve a financially responsible balance between attractive fixed salaries, equity-based incentives and performance-related bonuses.

Our remuneration policy for senior managers aims to:

• provide total compensation at a level that is competitive with other industrial companies of a similar size and scope or specific peer group;
• promote internal equity and total direct compensation (base pay + bonus + long-term incentives) levels for our executives at the 75th percentile of all industrial companies of a similar size and scope or a specific peer group;
• motivate managers towards the achievement of group-wide and personal goals, including efficiency and growth and;
• retain those individuals who consistently perform at or above expected levels and contribute to the success of our business.

The appointments, remuneration and corporate governance committee considers detailed remuneration proposals for senior managers, which are approved by the board of directors. Compensation to be paid to the board of directors is approved by our shareholders every year. The board of directors approves the remuneration of the individual members of our CEO office and executive officers. Such proposals comprise fixed annual salaries, performance-related bonuses and equity-based long-term incentives such as performance share units (PSUs) and other benefits. These annual proposals apply to:

• the CEO office;
• the executive officers.

Decisions on short-term and long-term incentive plans may apply to a larger group of employees. The appointments, remuneration and corporate governance committee receives updates about the application of these plans on a regular basis.

Fixed annual salary

Base salary levels are reviewed annually and compared to the market to ensure that ArcelorMittal remains competitive with market median base pay levels.

Performance-related bonus

ArcelorMittal has a discretionary bonus plan. The performance of the group as a whole or of the relevant business units, the achievement of specific objectives and the individual’s overall performance determine the outcome of the bonus calculation. The bonus is calculated as a percentage of the individual’s base salary. Different percentage ranges are used depending on the hierarchical level of the individual. Performance-related bonuses are paid only if certain minimum performance thresholds are exceeded by ArcelorMittal as a whole or the relevant business units. This global performance bonus plan is applicable to more than 2,000 executives worldwide.

Equity-based incentives

The Executive Office benefits from a long term incentive which grants Performance Share Units to the Executive office members. The PSUs vest based on performance targets linked to EPS, TSR and ESG. The ESG targets include progress over the grant period, towards achieving the Company’s 2030 climate target of reducing CO2e intensity by 30% by 2030 next to the achievement of specific health and safety targets, as well as an improvement target of the gender diversity level of management across the company.

Other benefits

In addition to the main compensation elements described above, other benefits may be provided to executives, such as company cars, contributions to pension plans or insurance policies. There are no agreements concluded with the CEO or with executive officers for change-in-control related severance pay.

Disclosure

The remuneration of individual members of the board of directors and the CEO is published in the company’s statutory annual report and its US annual report on Form 20-F. Remuneration of the CFO and executive officers is disclosed on an aggregated basis.