Compensation Policy for Company Officers

Doral’s compensation policy was established through benchmarking process, comparing it with similar companies in the energy sector. To ensure a comprehensive and accurate assessment, the Company utilized the services of Agmon & Co. Rosenberg HaCohen & Co. Adv. law firm for its drafting. The policy was approved by the Company’s board of directors at the shareholders’ meeting on May 26, 2020, and will remain in effect for five years from the date the Company went public. Beyond legal requirements, out of Doral’s committed to operating transparently and maintaining open dialogue with its stakeholders, the compensation policy is publicly available on the stock exchange website. The board of directors periodically reviews the policy to adapt it to the Company’s evolving needs, to ensure it meets stakeholders’ expectations, and complies with legal requirements.

The compensation policy aims to provide clear guidelines for remuneration of the Company’s executives, striking a balance between the Company’s interests and incentivizing the achievement of its goals. It ensures the recruitment and retention of high-quality officers in the long term while aligning with the Company’s business strategy. Doral’s compensation policy is primarily based on measurable criteria, quantitative tests, and personal targets for each executive, and it includes short-term (annual) and long-term (equity-based) compensation mechanisms. In 2023, Doral incorporated compensation metrics linked to promoting ESG aspects in the Company for some executives, a move that was expanded to include the Human Resources Manager and is expected to extend to other managers within the Company.

For information on the Group’s updated compensation policy, refer to the Company’s report, published on the stock exchange website on March 8, 2022 (reference number: 2022-01-023166).

The Company’s board of directors examined the salary ratio between senior executives and all company employees and contractors providing services, as well as the impact of these disparities on labor relations. The board concluded that the ratios are appropriate and reasonable given the Company’s characteristics, field of activity, scope, and nature of its operations, and its workforce composition, and that they are not expected to adversely affect labor relations within the Company. According to the compensation policy approved on March 15, 2022, the ratio between the average (approximate) salary of the CEO and the rest of employees was 3.05, and the ratio between the median salary was 3.71. Additionally, the ratio between the highest annual salary growth rate and the annual median salary growth for all company employees is 3.36.