Management

Management incentive system

The remuneration of the members of the Board of Management and the Supervisory Board is published annually in the remuneration report, which can be found in the Annual Report and on the Investor Relations website.

The following information is intended to provide an overview of the components of remuneration for senior management levels below the Board of Management.

The Group's remuneration policies are designed to attract, retain, motivate and reward senior management so that they achieve the challenging financial and strategic objectives of the Group. We expect strong contributions from our senior management and we aim to reward top performers accordingly.

Short-term variable incentive

The short-term variable incentive is a performance based scheme that acts as a key tool in delivering the objectives of the Group.  A new scheme was introduced in 2009 to increase the emphasis on reward for performance, to tie in the new leadership behaviours that feed a high performance culture, and reinforce the success of the overall Group performance as a driver for incentive payments. 

According to the terms of this scheme, the Group's senior managers concerned will receive part of their variable 2009 salary in the form of Deutsche Post AG shares in 2010. Each executive has the option to purchase additional shares using another part of their variable 2009 remuneration. If certain conditions are met, the executive will be awarded an equivalent number of Deutsche Post AG shares, so-called "matching shares", after four years.

We are confident that  these changes have resulted in a scheme which provides a strong lever which will continue to drive exceptional performance at senior management levels, while responding to the public discussion on compensation.

Long-term variable incentive

The long-term variable incentive is in the form of a Stock Appreciation Rights (SAR) scheme. Senior management are granted the opportunity to benefit from a cash payment equal to the difference between the market price of Deutsche Post shares at the time of exercise and the defined grant price. The payment is based on achieving predefined payment thresholds at the end of a four-year vesting period.