Remuneration for Klöckner & Co SE Management Board members is determined by the Supervisory Board and corresponds with the tasks and performance of the Management Board members and with the position of the Company. Apart from the tasks of the individual Management Board members, criteria for the adequacy of the remuneration include individual performance and the economic position of the Company as well as the customary remuneration amounts with regard to their peer group and the remuneration structure that applies in the Company.
Compensation for Management Board members consists of non-performance-related and performance-related components. The non-performance-related components comprise a basic (fixed) salary, ancillary benefits and pension benefits. The performance-related components of Management Board compensation consist of a variable annual bonus. Only 49% of the annual bonus is paid directly to each Management Board member. After deduction of income tax at a fixed rate, the remaining 51% must be used by Management Board members for a personal investment in Company shares with a vesting period of three years. The performance-related components thus give mainly long-term performance incentives, gearing the compensation structure toward the Company’s sustainable growth.
Please refer to the remuneration report on page 39 et seq. of the current annual report for additional information about remuneration for Management Board and Supervisory Board members.