Annual Report 2010 Holcim Ltd

Value-Driven
Corporate Management
Holcim’s hierarchical structures are flat and its divi-
sions of responsibility clearly defined – both at Group
level and in the individual Group companies. This
ensures that decisions are based on expert knowledge
and cost awareness, and that new processes or stan-
dards can be implemented without delay.
The Group’s managers, the regions and the countries
and local sites are assisted by service centers at the
regional level and by central corporate staff units at a
global level. To pool energies more efficiently, in May
2010, the central service and support functions of
HGRS were merged under one management.
Holcim has well structured management systems in
place. Group companies are given clear guidelines in
key areas of the business, from technology and environmentally
friendly production to human resources
and finance.
Business Risk Management identifies risks
and opportunities
Business Risk Management supports the Executive
Committee and the management teams of the Group
companies. Business Risk Management aims to systematically
help recognize major risks – as well as opportunities
– facing the company. Potential risks are
identified and evaluated at an early stage. Countermeasures
are then proposed and implemented at the
appropriate level. Risk management looks at a wide
range of different internal and external risk types in
the strategic, operating and financial sectors.
In addition to the Group companies, the Executive Committee
and the Board of Directors are also involved
in the assessment process. The Group’s risk profile is
assessed both top-down and bottom-up. This not only
entails identifying threats along the entire value chain,
but also opportunities. The Board of Directors receives
regular reports on important risk analysis findings
and provides updates on the measures taken (see also
page 93).
Internal Audit as an important monitoring instrument
Internal Audit is an independent body. It reports
directly to the Chairman of the Board of Directors
and submits regular reports to the Audit Committee.
Internal Audit does not confine itself to financial
matters, but also monitors compliance with external
and internal guidelines.
Particular attention is paid to the effectiveness and
efficiency of internal management and control systems,
including:
Examining the reliability and completeness
of financial and operational information;
Examining the systems for controlling compliance
with internal and external directives such as plans,
processes, laws and ordinances;
Examining whether operating assets are secure.
Focus on joint objectives
To achieve the corporate goals and added value it is
aiming for, Holcim systematically measures performance,
and operates systems to motivate management
to perform on a consistently high level. A standardized,
variable compensation system is in place for our most
senior executives. Salaries are calculated not only on
the basis of financial objectives, but also in light of
individual goals (see also remuneration report on
pages 106 to 116). A significant proportion of the
variable compensation is paid in the form of Holcim
shares, which are locked in for a period of three to five
years. This system strengthens the shared focus on a
sustainable increase in the Group’s performance and
value.