The basic principle in the remuneration policy is that Providence Capital benefits from a stable and high-quality workforce rewarded with a fixed, market- conform salary.
A number of Providence Capital employees, including most partners, receive a (fixed) management fee for the services they provide. Other employees are employed by Providence Capital and receive a fixed salary.
In certain cases, a limited variable remuneration may be awarded in addition to the fixed remuneration. This is always done on a discretionary basis and an allocation is based on the performance of the relevant employee.
In assessing a performance, both financial and non-financial performance indicators (such as customer satisfaction or responsible risk behavior) are taken into account. In this way, the remuneration policy does not provide an incentive for employees to take irresponsible investment risks (including irresponsible sustainability risks) when making investment decisions.
If a variable remuneration is awarded, it will in principle not exceed a ‘cap’ of 20% of the fixed remuneration as is specified by the legislator. Under certain conditions, the legislator allows a variable remuneration to be awarded to an employee that is higher than 20%. Providence Capital keeps the possibility open to make use of this and will comply with statutory conditions in these cases.