Compensation of executives, responsible for planning, direction and control of OI activities
At the Annual and Extraordinary General Shareholders’ Meeting of April 30, 2020, shareholders approved by majority of vote the management’s proposal that establishes the Management’s compensation for next fiscal year, as follows:
- The annual overall compensation of the Board of Directors totaling up to R$ 8,249,008,80;
- The annual overall compensation of the Company’s Management totaling up to R$69,610,656,90; and
- The annual compensation of the Fiscal Council, in the minimum amount established in Paragraph 3 of Article 162 of the Brazilian Corporations Law.
Employees’ Bonus Plan
Profit Sharing Plan
The profit sharing plan was created in 1999 to encourage employees to accomplish the goals laid out by the Company and to align employees’ interests to the interests of shareholders. The rules of the profit sharing program are negotiated with the union through a specific collective bargaining agreement and payment depends on accomplishing the indicators’ goals annually defined by the Company’s Board of Directors. The financial and quality indicators are Operational Cash Flow, Revenue, Expenses and Quality of service.
Long Term Incentive Plan:
The current long-term share-based incentive plan for Key Executives was submitted and approved at the Extraordinary General Meeting held on April 26, 2019. Such plan allows the granting of Shares to Beneficiaries, aiming at promoting high engagement of executives and keep them committed to ensure the achievement of the Company’s medium and long-term strategic goals.
Having the performance of the Company’s shares as its main indicator, the program aims to provide executives with a share in the development of the company, aligning their interests with those of shareholders, in addition to enabling the Company to attract and retain top professionals, offering them the opportunity to be rewarded for generating shareholder value.