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, Copel Performance Bonus – PPD and Long-Term Incentive – ILP).

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

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.

Fixed Compensation of Executive Directors

Details on the fixed compensation of officers are available on the Transparency Portal. 

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 Remuneration

Employee Participation in Profits and/or Results (PLR)

Profit Sharing and/or Results (PLR) is applicable to employees, has an annual frequency and is defined based on negotiations with unions.

The PLR ​​is made up of corporate goals and indicators and the amount, until 2022, was distributed equally to all employees, in accordance with Federal Law No. 10,101/2000, State Law No. 16,560/2010 and the State Decree No. 1,978/2007.

As amended by State Decree No. 6,205/2020, as of 2023, the distribution of the amount became proportional, comprising a linear part and a variable part.

Performance Bonus (PPD)

The Performance Bonus (PPD) is a management practice based on objectives, applicable to employees and directors,
and was created to reinforce 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.

Long-Term Incentive Plan (ILP)

Reinforcing Excellence and Commitment to Sustainable Success

In the continuous search for excellence and sustainable success, Copel improved the compensation structure to reflect core values ​​and drive the long-term strategic vision. The Long-Term Incentive (ILP) is a tangible manifestation of this commitment, designed to align the interests of executives, leaders and key position holders with the strategic objectives that shape the Company’s future.

Clear Objectives, Concrete Results

The Long-Term Incentive (ILP) approach seeks to achieve multiple strategic objectives: aligning compensation with the company’s lasting success; value performance by linking a significant part of remuneration to value creation; promote a culture of merit and continuous excellence; and attract and retain talent through a competitive package that recognizes and rewards value creation.

This strategy aims to not only encourage goals aligned with the long-term vision, but also celebrate exceptional results and drive the maximum potential of each team member.

Ongoing Commitment

The Long-Term Incentive (ILP) represents more than a simple remuneration policy, it is a tangible demonstration of the commitment to excellence, innovation and long-term sustainability. By aligning financial interests with the company’s strategic objectives, Copel solidifies a promising future for all interested parties.

Furthermore, Copel remains committed to constantly strengthening and improving the ILP program, ensuring that it continues to be a crucial source of motivation, growth and success for everyone in the organization.

Thus, we seek to build a path to new levels of excellence and achievement, establishing a lasting legacy of prosperity and success.

Long-Term Incentive Plan (ILP) Details

  • Administration and Goal Setting – The ILP will be managed by the Board of Directors, with support from the People Committee, which will establish challenging goals aligned with the company’s performance and the established risk limits.

  • Eligibility of Beneficiaries – Statutory and non-statutory directors, employees in managerial positions or key positions and members of the Board of Directors are eligible. Types of shares include Restricted Shares and Performance Shares, with members of the Board of Directors only being eligible for Restricted Shares.
  • Performance Goals – These are related to performance and may include criteria such as Absolute TSR, share appreciation, declared earnings, participant and company performance metrics, among others.

  • Minimum Valuation of Restricted Shares – Restricted shares must reach a specific minimum appreciation during the grace period, guaranteeing the generation of value for the company.

Limits and Specific Rules:

  • Performance Restricted Shares – Limited to up to 0.8% of the share capital, subject to acquisition conditions, a 3-year grace period and a restriction period determined by the Board.

  • Restricted Shares – Limited to up to 0.2% of the share capital, subject to a grace period and restriction period defined by the Board, and for Board Members the minimum term is 2 years for both.

These are the main guidelines of the Long-Term Incentive Plan, designed to recognize and reward the exceptional performance of employees and board members, driving the Company’s growth and sustainable success.

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.