Bracell’s Compensation Policy applies to all employees. This policy establishes a minimum wage that is higher than the local minimum wage. The Policy is guided by inclusive principles that promote equal opportunity and diversity across dimensions such as gender, ethnicity, age, religion, sexual orientation, geographic origin, social class, and personal values, while recognizing individual strengths and talents.

Salaries are determined based on several factors, including current labor laws and collective bargaining agreements, the role’s weight and importance within the organizational structure, market practices, internal pay equity, external competitiveness, the expertise and skills required for each position, organizational strategies, available budget, and the company’s financial position.

The salary table is updated annually based on compensation surveys conducted by specialized consulting firms, taking into account factors such as competition, region, labor availability, unemployment rates, and market turnover. The total compensation package offered by the company includes basic salary, bonuses, variable compensation, and benefits, and is designed to be competitive within the market.

A significant portion of workers who are not employees but are engaged in our activities are paid according to the rules established for the local minimum wage.

At Bracell, the term “senior management” refers to individuals serving as President, Vice President, Chief Operations Officer, or Head of Operations. As of the reporting year, Bracell’s senior management team comprises seven members—4 based in São Paulo and 2 in Bahia. One executive was hired locally in São Paulo.

Bracell Papéis currently has two senior management executives, both of whom are internal hires from Bracell Papéis Sudeste. Their leadership responsibilities include oversight of our Northeast paper operations. No local hires were made for senior-level positions within Bracell Papéis during the reporting period (for more details, see GRI 405-1).