ThaiBev Group CEO and executives are fully aligned with the long-term performance of ThaiBev. With PASSION 2025 as our strategic goals, variable remuneration is determined by a broad set of indicators, financials and relative financial metrics including but not limited to:
Financial Metrics
- Return on Capital Employed
- Return on Equity
- Volume Growth
- Net Sales Values
- Net Income
Relative Financial Metrics (as comparison to benchmarking companies, and specific industry performance and Singapore Exchange (SGX)):
- Relative Total Shareholder Returns
- Issuer credit ratings by credit rating agencies
Non-financial Metrics:
- Predefined sustainability target
- Sustainability score and global ranking score
- Net zero emission by 2040 (scope 1 and scope 2)
- 100% water replenish by 2040 (water used in finished goods)
Additional strategic goals, PASSION 2025 goals, are set to be evaluated by September 2025 including but not limited to:
- Market share in five main geographical markets
- Proportion of revenue from new businesses and channels
The Group CEO, Mr. Thapana Sirivadhanabhakdi, has been in senior management position since the incorporation of the company and was appointed President and CEO of ThaiBev in 2008. He initiated Vision 2020 and PASSION 2025 to achieve long term vision as the stable and sustainable ASEAN leader. He currently holds 107 million shares since the incorporation of the company or 40.59 times of his current annual salary base and is fully aligned to the long-term performance of ThaiBev.
Share ownership guideline for CEOs as well as variable compensation follow the mandate from the Remuneration Committee and Long Term Incentive Plan Committee (LTIP Committee). The incentive plan determined by LTIP Committee lay out the performance metrics, amount of share bonus, performance period and conditions as well as vesting time.
For Group CEO, the share bonus in 2023 were determined by the LTIP Committee. Up until 2020, Mr. Thapana Sirivadhanabhakdi as the person who initiated the program and serves on the committee voluntarily declined to participate and accept the shares to avoid conflict of interest. Starting from 2021, the share bonus to the Group CEO was granted by the LTIP Committee with full acknowledgement of his commitment to protect against the conflict of interest. The share grant to Group CEO is linked to highly ambitious strategic goals and are administered as shadow or synthetic shares. Performance condition for Group CEO is set as for subsequent financial year and PASSION 2025 goals. Therefore, the longest performance period for the 2023 grant for Group CEO is 5 years. The vesting period for Group CEO is determined to be 5 years with claw-back provisions in line with LTIP.
For Product Group CEOs, the share amount granted are determined from 2 performance years, where thereafter the shares are vested over the span of 5 years with claw-back provision based on pre-defined targets. As a result of performance condition and claw-back, the final amount for Product Group CEOs range from 0% to 120% of the initial grant.
The proportion of deferred bonus in 2023 as percentage of total bonus for the Group CEO is 20% and 18% for Product Group CEOs.
The minimum requirement to build up shareholding value for the position of Group CEO were considered and determined to be at least 15 times of annual base salary (share ownership). As he currently holds 107 million shares since the incorporation of the company or 40.59 times his current annual salary base, it is considered that such target has been well achieved. According to the figure as of end of fiscal year 2023.
Additional guideline has been put in place to strengthen the alignment through shareholding of executives who are members of the Executive Committee. A target has been set for members of Executive Committee who are eligible to participate in the Long-Term Incentive Plan to build up shareholding value to at least 5 times of annual base salary (share ownership).
ThaiBev conducts our business on a global scale while operating our business with significant insourcing of activities. Accordingly, the Group CEO’s compensation is based on international standard and influenced by the global scale of our business, while the mean of all employee compensation, THB563,473, is influenced by the minimum wage of the country, we operate in.
Also, for the purpose of understanding the pay multiples of the Group CEO, and our staff, the pay ratio of the Group CEO to employees is categorized into three relevant groups, which are the Group CEO to all employees, the Group CEO to white-collar employees, and the Group CEO to management-level employees.
Three groups of the pay ratio are as follows:
The pay ratios for the 3 groups are as follow:
- The ratio between average of the Group CEO and mean of all employees: 234.31
- The ratio between average of the Group CEO and mean of white-collar employees: 214.60
- The ratio between average of the Group CEO and mean of management-level employees: 36.44
