Governance | G4-51

Remuneration policies for the highest governance body and senior executives

The appropriateness of the remuneration depends upon the responsibilities and personal achievements of the individual Executive Board member as well as the economic situation and market environment of the company as a whole. The Supervisory Board is of the opinion that remuneration for Executive Board members should be appropriate and that their set goals should be ambitious. The remuneration of the members of the Executive Board comprises a fixed annual salary (fixed remuneration), an annual variable component, a long-term remuneration program (Long-Term Incentive Plan/LTIP) and a company pension in the form of deferred compensation. The company’s sustainability objectives flow into individual performance goals and thereby into executive remuneration. The goals are assigned to the managers according to their areas of responsibility. Items such as the reduction of our CO2 emissions (Scope 1 and 2), the sustainable orientation of our innovation process or the sourcing of raw material from sustainable sources are incentivized.

In addition, a separate global performance bonus plan –with which we aim to achieve the company goals we have set by means of a variable remuneration geared toward results and performance – applies to about 70 managers with global or regional responsibilities. At the same time, we are working on additional global incentive and bonus plans.