European Transport "EU Transport Management Remuneration KPI review" Nedelcu

Research evidence excerpt

European Transport "EU Transport Management Remuneration KPI review" Nedelcu

Global Research

20 May 2026ab

European Transport Equities

Europe including UKEU Transport Management Remuneration KPI

review Industrial Transportation

Cristian Nedelcu, CFA

Analyst

cristian.nedelcu@ubs.com

We analyse executive remuneration KPIs for Transport sector incentive plans +44-20-7568 4375

Our analysis spans 26 Transport companies, mainly focusing on: i. alignment with short Samuel Goldstone

and long term shareholder interest; ii. alignment with company strategy; iii. changes Associate Analyst

in KPIs over time; iv. where disclosure is available we look if the targets are demanding. samuel.goldstone@ubs.com

We acknowledge there is a spread of opinions around best practice in terms of the +44-20-7567 0338

relevant performance indicators that should stand behind remuneration structures, and Amal Patel

LTIPs specifically. Analyst

amal.patel@ubs.com

We favour a focus on a combination of factors for long-term remuneration: ROCE, cash +44-20-7568 3973

generation, growth and TSR, which in our view best aligns management remuneration Jarrod Castle, CFA

with long term shareholder interest. Overreliance on earnings/profit metrics and non- Analyst

financial metrics is, in our view, less well aligned. jarrod.castle@ubs.com

+44-20-7568 8883

Main changes vs. prior years since last update

In this note we discuss the main changes vs. the previous years (note) and also look in

more detail at the benefits and limitations of the KPIs attached to the various

remuneration policies. Looking at the changes vs. last year we note:

Maersk removed ESG metrics from the 2026 long-term incentive plan, with the only

metric now ROIC at 100% weighting (up from 80% in 2025). We see this change as a

positive.