2 Priorities in 2018

The composition, the priorities and the activities of the HR Committee are presented in the “Report of the Human Resources Committee”. Its principal focus in 2018 was on succession planning, personnel development and compensation in line with the market.

During the reporting period, the Human Resources Committee completed a review of the compensation for the Executive Committee. Compensation levels were assessed based on cross-industry market comparisons. Compensation shall be performance-based, subject to Group performance and the individual contributions made in the respective area of responsibility. In addition, the compensation structure shall be designed to retain qualified managers in the company over the long term and to provide incentives for the sustainable increase in company value. The review showed that the compensation structure for the Executive Committee overall serves its purpose and that compensation levels are aligned with market practice.

Additionally, to ensure market based compensation for managers reporting to members of the Executive Committee, all positions were systematically benchmarked and graded. To promote an entrepreneurial culture within the Group and a stronger focus on shareholders’ interests, a share based long-term incentive plan (LTI) was introduced with a maximum target value of 10% of the annual base salary. The value of the LTI allocation depends on the achievement of the earnings per share (EPS) target and may vary between 100% and 150% of the target amount. The restricted stock units are subject to a three-year vesting period, subject to continued employment.