Compensation Report

Introduction by the Chairwoman of the Compensation Committee

Dear Shareholders,

On behalf of the Board of Directors of GF and of the Compensation Committee, I am pleased to present the 2021 Compensation Report.

In the past two years, the Compensation Committee conducted a thorough review of the compensation system applicable to the Executive Committee. As announced in the 2020 Compensation Report, the changes to the short-term- and long-term incentive plan of the Executive Committee were implemented in 2021. These changes were discussed in detail with investors and proxy advisors already in 2020 and were received very positively, which was also confirmed by the high approval rate of the Compensation Report at the last Annual Shareholders’ Meeting.
In addition and to increase transparency, you will find a more detailed disclosure of the short-term incentive achievement as well as information about the vesting of the long-term incentive plans.

In 2021, the Compensation Committee reviewed the Board remuneration structure and levels. Based on the outcomes of this analysis, the Compensation Committee proposed to the Board of Directors to adjust the fees for the Board Chairmanship, for the Chairmanship of the Compensation Committee and for the Chairmanship of the Nomination & Sustainability Committee. The adjustments were approved by the Board of Directors and have been effective as of the 2021 Annual Shareholders’ Meeting. Further details can be found in this Compensation Report.

While business in 2020 was significantly impacted by the COVID-19 pandemic, in the year under review, the business in major market segments of the company recovered and remarkable progress was achieved toward the strategic targets. We will explain in this report how GF’s performance in 2021 impacted the compensation awarded to the members of the Executive Committee in the incentive plans.

This Compensation Report includes all relevant information concerning the compensation policy and programs, the governance around compensation decisions, and the compensation awarded in the reporting year. You will be asked to approve the maximum compensation amount for the Board of Directors for the period until the next Annual Shareholders’ Meeting and the maximum compensation amount for the Executive Committee for the next financial year (prospective binding votes) at this year’s Annual Shareholders’ Meeting. In addition, your valued opinion will be sought with regard to the Compensation Report through a consultative retrospective vote.

We trust that the adjustments made to the compensation system will help us to achieve the ambitious strategy and we thank you for your valuable feedback and your continued support. We are looking forward to continuing this constructive dialogue with you as our shareholders and stakeholders.

Sincerely,

Eveline Saupper

Chairwoman of the Compensation Committee

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