1.

Overview
It is LEORON’s policy to encourage employee development and to provide further career
opportunities for career enhancement through higher levels of responsibility. This policy determines
vertical and lateral promotion opportunities within the organization.

2. Objective

The objective of this policy is to select the most suitable candidate for a higher level of responsibility
and ensure standards are maintained during such a process.

3. Definitions

Cycle Promotion: A promotion/progression within the existing grade range of an employee's position.

Non-cycle Promotion: A promotion to another position or job family at a higher level within or outside
a Department / Function. A non-cycle promotion is effective when an employee is appointed to a
position level with a maximum of two grades difference between the current grade vs. starting grade
of the new position. The employee will receive one grade promotion each year with a maximum of two
grades to reach the starting grade of the new position.

4. Responsibility

4.1 Responsibility for nomination, endorsement, and approval of promotion shall be as per the matrix
below:
Responsibility
Promotion Type
Nomination Endorsement Approval

Executive Board of
Directors
Chairman & CEO directors
Cycle
Promotion Ass. Directors & Managing
Executive
below directors /
Chairman & CEO
Director As per
Delegation of
Managing
Executive Authority (DOA)
directors / Board of directors
Chairman & CEO
Non-cycle Director
Promotion Managing
Ass. Director and Executive
directors /
below Chairman & CEO
Director

4.2 The Human Resources Department will verify that the recommended candidates meet the criteria
specified for promotion.

4.3 The respective Line Manager will communicate all approved promotions.

5. Cycle Promotion
 5.1. Eligibility

5.1.1. Employee meets sustained rating criteria as per clause seven, table 1.
5. 1.2. Employees with unfulfilled business targets and/or performance ratings of 'Satisfactory'
or 'Need improvement' are not eligible for the promotion.

5.2. Administration

5.2.1. Promotion cycle occurs every December.

5.2.2. Employees are eligible for promotion effective 1st of January if sustained rating
requirements are met, and the Business Targets are accomplished.

6. Non-cycle Promotion
6.1. Eligibility

6.1 1. Availability of vacant positions in the approved organizational structure.

6.1.2. Meets minimum requirements as per the job description.
6.1.3. Sustained rating minimum 'Good'.

6.1.4. Completion of one year in current grade.

6.2. Administration

6.2.1 All non-cycle promotions are effective on the 1 st of next month following the
change’s approval.
6.2.2 Non-cycle promotions may be evaluated, if required, by concerned committees
appointed by the Executive Chairman & CEO from time to time.
6.2.3 For positions that have a grade range, e.g. Associate Directors and Section Heads,
or if the employee's current grade is below the job grade by more than one grade, the
employee will be promoted one grade per year until they reach one grade below the job
grade which is called the "Starting Grade" after which the job progression will be applied.
For example:

6.2.3.1. For a Section Head position evaluated at Grade 7, may have a starting grade
of 6, this means this position will range from 6-7, the employee will be
promoted one grade per year until he reaches grade 6 after which the job
progression will apply.

6.2.4 For any position with a single grade and no grade range, the employee will be
promoted one grade per year till they reach one grade below the job grade, after which
job progression will be applied.

6.2.5. If an employee's current grade falls within the range of promoted position's grade,
a non-cycle promotion is not applicable. In such a case, the employee will be eligible for
cycle promotion as per sustained rating criteria in clause seven, table 1.
7. General Rules

7.1. The promotion increase is calculated on the employee's new basic salary as per the approved
salary structure. Any exception requires the approval of the Executive Chairman and the CEO.
The total salary increase amount shall be rounded to the nearest denars.
7.2. Table 01 is used to establish the sustained performance ratings. Table 02 is used to determine
the minimum required years for promotion as a function of sustained performance and job
grade.

7.3. If the employee's salary is below his new grade's minimum salary after any promotion and
merit increase, then his salary shall be adjusted to the minimum based on HR evaluation and
Executive Chairman and/or CEO’s approval.
7.4. Employees may only be promoted to grades approved for the position they are in. They may
not be promoted or adjusted to a grade higher than the approved maximum grade of the
position.

7.5. All vacant positions must be reflected in the approved organization structure and in accordance
with the annual approved manpower plan.

7.6. Assignments on a temporary basis to a higher job will not be treated as a promotion.
7.7. This policy is applicable to all LEORON subsidiaries.

7. Sustained Performance Index

Sustained Performance Index (Table 1)
Year Before Last Last Year Sustained Performance
Outstanding Outstanding Outstanding
Very good Outstanding Outstanding
Good Outstanding Very good
Outstanding Very good Very good
Very good Very good Very good
Good Very good Very good
Outstanding Good Very good
Very good Good Good
Good Good Good
Satisfactory / Need
Any Rating Not Eligible
Improvement
Satisfactory / Need
Any Rating Not Eligible
Improvement
 8. Promotion Requirements
Promotions are not based on years of service or performance alone. The businesses need the existence
of a job vacancy, budget, considerations, and management judgment about the individual's readiness
compared to others on the team will determine all promotions.

9. Professionals
All positions at entry level require 4 or 5-year university degrees; Bachelor's Degree, Master's
Degree, or PHD (ID, Sales and L&D, Administration, Finance)

Professionals (Senior specialist, Team Lead, Lead Specialist) Table 2

Grade Outstanding Very Good Good
To Grade 3 2 years 3 years 4 years
To Grade 4 2 years 3 years 4 years
To Grade 5 2 years 3 years 4 years
To Grade 6 2 years 3 years 4 years

10. Middle management

Middle management (Head I & Head II, Associate Director I & II, Director) Table 3
Grade Outstanding Very Good Good
To Grade 7 2 years 3 years 4 years
To Grade 8 2 years 3 years 4 years
To Grade 9 2 years 3 years 4 years
To Grade 10 2 years 3 years 4 years

11. Exceptions

Promotion can be made as an exception if the candidate does not meet the requirement as per the above-
mentioned guidelines. The Executive Chairman or/and the CEO of the company may:

a. Approve the exceptional promotion cases solely at their own discretion or

b. Appoint members to form a committee to study exceptional requests. The promotion exception
committee will study any exception request on case-by-case basis and develop a recommendation for
Executive Chairman or/and CEO’s approval.

12. Job Grading and Salary structure

Remuneration is linked with the complexity of each job grade and is explained below with Table 4.

Department SUPPORT functions Net Salary SALES & L&D Net Salary
Grade 10 Director 2,100 € Director 2,000 €
 Associate
Associate Director
Grade 9 1,850 € Director (Level 1,650 €
(Level II)
II)
Associate
Grade 8 Associate Director 1,600 € 1,400 €
Director
Grade 7 Head (Level II) 1,300 € Head (Level II) 1,100 €
Head of Sales
Grade 6 Head 1,065 € 870 €
Business Unit
Lead Training
Grade 5 Lead Specialist 965 € 765 €
Consultant
Senior Specialist / Sales Team
Grade 4 765 € 650 €
Team Leader Leader
Senior Training
Grade 3 Senior Specialist 710 € 580 €
Consultant
International
Grade 2 Finance Specialist 600 € Training 470 €
Consultant
Grade 1 Admin/Coordinator 490 € Sales Trainee 301 €
Approved by: