Taking into account the Act Implementing the Second Shareholders’ Rights Directive (“ARUG II”) and the new German Corporate Governance Code, the Supervisory Board has resolved changes to the remuneration system that applies to all Management Board contracts to be concluded for the first time or extended from January 1, 2020, onwards and submitted the remuneration system to the Annual Meeting on May 11, 2021 for approval (item 6 of the agenda). The Annual Meeting has approved the remuneration system for the members of the Board of Management with a vast majority of 85,14 %.
The remuneration paid to Board Members is made up of non-performance-related and performance-related components. The performance-related components are designed to provide both short-term and long-term incentives.
- Nonperformance-related remuneration comprises a fixed basic salary that is paid monthly, the occupational pension scheme and fringe benefits. Fringe benefits include, for example, the use of a company car and a cellphone.
- The performance-related (variable) remuneration is based on two components. It comprises a one-year Short Term Incentive Plan (STI), which is mainly based on EBITA and individual performance, and a four-year Long Term Incentive Plan (LTI), which is based on the shareholder return.