Management and engagement of professionals

The compensation practices have the following objectives:

– align the interests of employees with the strategy of the Company and shareholders;

– allow the compensation of the employees to be competitive and attractive when compared to the market;

– recognize Klabin’s high-performance professionals, stimulating a merit-based culture, in addition to attracting and maintaining talent;

– ensure that executive compensation reflects the short- and long-term results, in addition to their individual performance.

The Company's fixed and variable compensation policies do not distinguish between gender, race, religion or any other aspects that are not related to individual or corporate performance. In addition, the executives have targets related to the KSDGs (Klabin Sustainable Development Goals), that is, they are related to one of the four thematic axes proposed (renewable future, sustainable economy, prosperity for people, and technology & innovation).

Klabin relies on the expertise of renowned consulting firms such as Korn Ferry do Brasil and Willis Towers Watson to conduct its annual salary surveys. These surveys are comprised of companies with similar characteristics and recognized in the market.

Management's overall compensation and the compensation plan are approved by the Board of Directors and the General Shareholders' Meeting. Complete information about their approval can be accessed here: https://ri.klabin.com.br/governanca-corporativa/assembleias-e-reunioes/

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Defined benefit plan obligations and other retirement plans

The pension plan is managed by a private and independent entity, in which there is no obligation for the company to hold reserves to ensure pensions. All professionals, regardless of position, can participate by making voluntary contributions. The company's contribution has the following modalities: – positions whose salary is less than BRL 4,736.00 and age over 55: payment of up to 6x the salary, made when there is a need. The employee does not pay the benefit; and –positions with salaries over BRL 4,736.00: employees can contribute percentages of 1% to 9% of their salaries. Klabin’s match varies from 100% to 150% of the employee contribution, according to their length of employment.

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Ratio of the organization's lowest salary to the local minimum wage, by gender​

Notes: In these operating units, the lowest wages correspond to different positions in each gender, which justifies the difference in proportion in relation to the minimum wage.

* for Administrative Assistant I and Receptionist

** for Production Assistant I and Storekeeper I

*** for Operator I Dispatch and Storekeeper I

**** for Expedition Helper I and Production Helper II

Performance evaluation

Our Performance Assessment process is carried out annually and allows for a more frequent monitoring of the performance and potential of our employees.

It is carried out through the SuccessFactors system, where the main deliverables agreed upon in the contracting of goals, challenges and the #AtitudeKlabin (connection with our Culture) are evaluated.

In our performance evaluation, our main objective is to drive the continuous development of our employees, to allow monitoring of performance and potential, in addition to being a device that encourages the practice of conversations about careers.

As a step we have:

• the contracting of goals and one of our drivers is our strategic planning and the Klabin Goals for Sustainable Development (KODS), so that we keep our culture alive by strengthening our #Klabin Attitude.
• self-assessment that follows and the employee starts in the system considering deliveries and Klabin’s Attitude skills.
• as a next step, we have the assessment of the manager who performs the same exercise as above, adding the performance assessment (below/under development; conforming; or above/exceeds expectations), potential assessment (adequate; potential; or high potential) in addition to the nomination of succession for leadership positions.
• at the end of the year, we entered the stage of a calibration committee specific to each area to discuss together with managers about each employee on the team. This dynamic is important to enrich discussions and broaden the view of evaluations through different perceptions of peer managers. 
• Next, we have the Feedback stage, which focuses on deliveries and behaviors at Atitude Klabin, in addition to general comments from the committee.

We understand that post-committee feedback and career conversations are inputs that facilitate the construction by the employee of an individual development plan to address gaps and strengthen relevant skills related to the function, business or Company.

For us, feedback is live and continuous and must always be present in our daily lives. Once the Performance Cycle feedback period is over, this is the moment for the employee to design his PDI (Individual Development Plan). This is an important tool for career management that guides reflection in order to create conditions for its development. Through it, it is possible to act on opportunities for evolution or to strengthen even more the points that are already highlighted. A check point is made so that managers can constantly monitor performance, provide feedback, in addition to monitoring the Individual Development Plan (PDI) of their teams.

In 2021, we evaluated 680 employees at coordinator level and above, divided into 25 calibration committees. As for the administrative public, we evaluated 3741 employees divided into 112 committees.

Succession Planning

The Company’s successors are mapped out during the annual Performance Review process focused on continuous development and aimed at the occupants of administrative and leadership positions.

In addition to managing the Performance Cycle and Succession Plan, Klabin carries out its process annually budget that allows forecasting future income and expenses. This budget is carried out strategic workforce planning which is a forecast of the number of people needed for our operations during the next year.

Throughout the year, we monitor this planning on a monthly basis (comparison and evaluation of budgeted versus actual).

Incentive programs

Employee support program

Our employees have medical and dental assistance, an agreement with pharmacies, transportation and food benefits, life insurance, day care assistance and school supplies, extended parental leave for employees, among others.

With a view to caring for emotional health, from 2020 onwards we will provide our employees with free online therapy

Wellness programs and benefits - by topic

* In 2022, the Facilities area is developing a Guidebook with architectural guidelines for inclusive spaces, including the implementation of these nursing rooms, with the support of Facilities.

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Maternity and paternity leave

Female audience: 11 resignations and 24 dismissals by the company.
Male audience: 19 resignations and 39 dismissals by the company.

In order to support the pregnant woman's return to work, Klabin implemented the Gestantes Program, which monitors and guides her from the beginning of pregnancy through the first six months of the baby's life. Upon this return, the employee receives psychological care at no cost and with unlimited sessions, as well as financial, social and/or legal guidance if necessary, also at no cost.  

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Private Pension Plan

The pension plan is managed by a private and independent entity, in which there is no obligation for the company to have a cash liability to ensure the pension. All professionals, regardless of position, can participate by making voluntary contributions. 

The company’s contribution has the following modalities: – positions whose salary is less than R$4,736.00 and aged over 55 years: payment of up to 6 times the salary, made when necessary. The employee does not pay the benefit, and: – positions with a salary higher than R$4,736.00: the employee can contribute with percentages from 1% to 9% of his salary. Klabin’s counterpart varies from 100% to 150% of the employee’s contribution, according to their length of service.

In 2022, the 3rd wave of interns entered the Estágio Social Program – Integra Klabin – which hired more than 40 higher education students with a family income of up to three minimum wages. Its purpose is to expand the access of low-income students to a structured internship and developmental path program, in addition to contributing to a diverse and inclusive environment. The effective rate this year was 47%. In addition, the Company also has the Estágio Corporativo Program – Geração K, which benefited 36% of students in 2022.
Three specialized talent banks were also implemented on the career page: for individuals with disabilities, black and mixed-race professionals, and professionals in the field of information technology. This action seeks to increase visibility for professionals in these categories, expanding access to available opportunities and advancing the diversity pillars. In the case of IT professionals, the goal is to maintain competitiveness and agility in recruitment and selection, given the great demand for professionals in the sector. 
Another new feature was the former employee portal, an exclusive digital channel for communication and self-service offerings for professionals who have left the Company. 
The topic of Emotional Health has been highly prevalent at Klabin over the past two years, with an expansion of psychological services available to employees and their dependents; various spaces for listening and discussing the topic, and the training of leaders in aspects related to understanding, identifying, and forwarding cases that require special care and attention.

Performance cycle
During the 2022 Performance Cycle, an annual performance assessment program, 4,788 employees were evaluated, including 742 leaders and specialists and 4,046 from the administrative staff. The stages of the program include self-assessment, manager assessment, calibration committees, feedback, individual development plan and check point. 
One of the results of the performance cycle is succession mapping. Currently, 75% of the Executive Board consists of people who have been promoted from within Klabin. This result was driven by the Talent Acceleration Program for Managers, launched in 2019 and which has 27 participants in the 2022 edition. One of its stages is a process for assessing skills aligned with the behaviors and attitudes expected for the next level, providing opportunities for development. In addition, the business strategy and corporate governance modules were conducted and support was provided for constructing the Individual Development Plan (IDP), as well as career talks to foster reflections on the topic, connected with the participants. The inaugural class of the Coordinators Acceleration Program was also held, which includes 24 participants. Te pilot class began in November and took advantage of the strategy and career talks modules, while the other modules are planned for 2023.
There is also the Florescer Program, launched in 2021, with the aim of preparing potential successors for coordinator positions. Specialists, supervisors, engineers and analysts are eligible and the program seeks to feed the leadership pipeline (map) for the Company's critical areas, such as production, maintenance and quality. The program is comprised of a development track with over 120 hours of training, divided into three pillars: business, technical (with an applied project) and behavioral, as well as mentoring sessions provided by internal managers. In these two years, 38 people were trained, 21% of which were promoted to coordination. Two classes are currently underway.

Undertaking goals linked to the topic by executives