The remuneration report also forms part of the Group Management Report.
The total remuneration paid to Board of Management members is determined by the Supervisory Board or its Executive Committee, which is headed by the chairman of the Supervisory Board. After holding consultations, the Supervisory Board decides on the remuneration system for the Board of Management – including the main contractual elements – based on the recommendation submitted by the Executive Committee. The remuneration system is regularly reviewed by the Supervisory Board. The remuneration of the Board of Management reflects the size and global reach of the company, its economic and financial situation and the roles fulfilled by the individual members. It is set to ensure competitiveness with comparable German and international companies, thus providing an incentive for the Board of Management members to deliver maximum performance and achieve results. The Supervisory Board conducts regular reviews to determine whether the remuneration paid to the Board of Management is appropriate, taking into account the company’s results, the industry in which it operates and its future prospects.
The remuneration of the Board of Management is performance-based and comprises fixed and variable elements as well as long-term incentives.
Components not linked to performance are the basic salary, fringe benefits
and pension commitments. The basic salary is paid monthly. Fringe benefits comprise mainly the use of company cars, the reimbursement of travel expenses, a telephone
allowance and supplements for insurance premiums as well as special allowances and
benefits for assignments outside the home country.