Remuneration of the Executive Board and Supervisory Board
Gordon Riske, Chief Executive Officer (CEO), is responsible, among other things, for the strategic management of the Group, communications, governance and compliance. On 11 January 2013, he also took over responsibility for internal audit, KION Warehouse Systems and the North and South America regions.
Klaus Hofer stepped down from the Executive Board of the KION Group on 10 January 2013. As Chief Human Resources Officer (CHRO), he had been responsible for human resources, legal affairs, health & safety and internal audit. He was also the KION Labour Relations Director.
Bert-Jan Knoef is CEO and Labour Relations Director of the brand company STILL GmbH and, since 11 January 2013, has also overseen all cross-brand logistics activities and managed the intra-group logistics service provider, Urban.
Theodor Maurer is CEO and Labour Relations Director of the brand company Linde Material Handling GmbH and, since 11 January 2013, has also held cross-brand responsibility for quality, facility management, health, safety and the environment.
Ching Pong Quek was appointed Chief Asia Pacific Officer with effect from 11 January 2013 and heads up the KION Group’s entire Asia business.
Dr Thomas Toepfer, Chief Financial Officer (CFO), is responsible, among other things, for finance (including financial services) and IT activities. On 11 January 2013, he also took over responsibility for purchasing, human resources, legal affairs and data protection. He is also the KION Labour Relations Director.
The remuneration paid to the Executive Board comprises a fixed salary and non-cash benefits, pension entitlements and performance-related components. The variable performance-related components are paid each year on the basis of the Group’s performance. In addition, there are performance-based components in the form of the KION performance share plan for all Executive Board members and a bonus for Dr Thomas Toepfer. The pension entitlements consist of retirement, invalidity and surviving dependants’ benefits.
The total remuneration paid to the members of the Executive Board in 2013 amounted to €7.4 million (2012: €12.0 million). This consisted of short-term remuneration amounting to €4.9 million (2012: €5.6 million), post-employment benefits totalling €0.6 million (2012: €0.4 million), termination benefits of €0.0 million (2012: €6.0 million) and share-based payments of €1.9 million (2012: €0.0 million). The short-term remuneration comprised non-performance-related components amounting to €2.8 million (2012: €1.9 million) and performance-related components amounting to €2.2 million (2012: €3.6 million). The current service cost resulting from pension provisions for the Executive Board is reported under post-employment benefits. The long-term incentive components take the form of a performance share plan (see note ). In addition, one Executive Board member was promised a special bonus, to be paid in two tranches, that would be granted in the event of a successful IPO; this bonus also counts as a long-term incentive. The pro-rata expense for share-based payments totalled €1.9 million (2012: €0.0 million).
Under section 314 HGB, disclosure of the expense for share-based payments is not required. Rather, they must be included in the Executive Board members’ remuneration for the year in which they are granted on the basis of the fair value at the individual grant dates. The fair value of the share-based payments at their individual grant dates amounted to €6.2 million (2012: €0.0 million). Furthermore, post-employment benefits must not be disclosed. On this basis, the total remuneration paid to the members of the Executive Board pursuant to section 314 HGB came to €11.1 million (2012: €5.6 million).
No loans or advances were made to members of the Executive Board in 2013 (2012: loans and advances totalling €0 million). The present value of the defined benefit obligation in respect of Executive Board members as at 31 December 2013 was €5.9 million (31 December 2012: €2.3 million).
The total remuneration paid to former members of the Executive Board in 2013 amounted to €0.2 million (2012: €0.2 million). Defined benefit obligations to former members of the Executive Board or their surviving dependants amounting to €5.2 million (2012: €3.6 million) were recognised in accordance with IAS 19.
Further details of Executive Board remuneration, including the individual amounts for each member, can be found in the remuneration report of this annual report.
The total remuneration paid to the members of the Supervisory Board for the performance of their tasks at the parent company and subsidiaries in 2013 amounted to €1.2 million including VAT (2012: €1.0 million). There were no loans or advances to members of the Supervisory Board in 2013. Furthermore, the members of the Supervisory Board did not receive any remuneration or benefits for services provided as individuals, such as consulting or brokerage activities.
Members of the Supervisory Board also received short-term employee benefits of €0.6 million for employee services (2012: €0.5 million).