Compensation
Copel’s structured compensation, recognition and incentive model is based on two pillars: fixed compensation (Career and Compensation Structure) and variable compensation (Profit Sharing and/or Results – PLR and Copel Performance Bonus – PPD).
The fixed remuneration is established in the document Career and Remuneration Structure, based on market practices for the position, function and level of education and qualification. The benefits, on the other hand, are established in the Collective Bargaining Agreement, negotiated annually between the unions and Copel.
The human resources area is responsible for the management of the Career and Remuneration Structure, which aims at identifying positions and functions required for the development of the Company’s activities; to define required training to perform the activities of each position and function; to establish levels of maturity and complexity of the positions and functions to meet the demand of job positions; to establish rules for functional (vertical) and salary (horizontal) movement of the employees; and to evidence opportunities of growth and development in careers.
Moreover, variable remuneration is a Copel practice, complementary to fixed remuneration, which, by means of management by objectives, involves all employees and contributes to the Company’s cultural change with a focus on meritocracy and on encouraging the appreciation of the professionals according to their deliveries. Thus, employees are encouraged to work with challenging goals, to achieve differentiated levels of results and to receive variable remuneration according to their achievements.
Fixed Compensation of Employees
Copel does not disclose its employees’ compensation, preserving the confidentiality of personal information that may compromise their safety and ensuring the confidentiality of the company’s strategic information that has the potential to harm its competitiveness in the market. The position is based on the understanding adopted by Copel/DRI Legal Opinion No. 025/2019.
Details on total, average and proportional remuneration can be found in the Integrated Report.
Employees’ Variable Compensation
Employee Participation in Profits and/or Results (PLR)
The Profit and/or Result Sharing (PLR) is annual and is defined through negotiations with the unions.
The PLR is composed of corporate targets and indicators and the amount, up to 2022, was distributed equally to all employees, in accordance with Federal Law 10.101/2000, State Law 16.560/2010 and State Decree 1.978/2007, as amended by State Decree 6205/2020.
As of 2023, the distribution of the amount became proportional, contemplating a linear and a variable part.
Performance Bonus (PPD)
The Performance Bonus (PPD) is a practice of management by objectives and was created to reinforce the meritocracy culture in the Company, besides recognizing the achievement of goals and extraordinary results obtained in the different organizational levels of the company.
The program is an incentive adopted at the discretion of the company, provided for in article 457 of the CLT, and has specific characteristics:
It is variable – the premium payment depends on the achievement of goals, i.e., in addition to the values varying from one cycle to another, if the goals are not achieved there is no premium payment.
Annual frequency (short term) – the goals and the bonus amounts are defined in each one-year cycle, and the payment, if any, will occur only once a year.
Linked to extraordinary performance – the payment of the premium is conditioned to the verification of a performance higher than normally expected.
Fixed Compensation of Executive Directors
Details on the fixed compensation of officers are available on the Transparency Portal.
Variable Compensation of Directors
For officers, the variable compensation, as a performance bonus, is linked to the achievement of targets and conditional on approval by the Annual General Meeting – AGO, as stated in the Reference Form.
Fixed Compensation of Board of Directors Members and of Committees Members
Details about the fixed remuneration of directors and committee members are available at Transparency Portal..
Variable Compensation of Board of Directors Members and of Committees Members
The Company does not apply variable compensation to the Executive Board and to the Audit Committee.
Collective Bargaining Agreements
Copel maintains a close relationship with all 18 entities representing employees: unions of basic categories (electricians) and professional and/or differentiated categories. Under the terms of the labor legislation (art. 543 of the CLT), union leaders are guaranteed the exercise of union activities, with access to employees for the necessary communications and disclosures, including maintaining a direct communication channel with the human resources area.
