Remuneration of the Executive Board and Supervisory Board
Gordon Riske is Chief Executive Officer (CEO) and his responsibilities include strategy / business development, corporate communications, the corporate office, internal audit, compliance, KION Warehouse Systems, KION synergies / platforms, the North America region and the South America region. Since 15 January 2015, he has also been CEO of both the Linde Material Handling GmbH and the STILL GmbH brand companies and has assumed responsibility for quality.
Bert-Jan Knoef stepped down from the Executive Board of KION GROUP AG on 15 January 2015. He was CEO and Labour Relations Director of the brand company STILL GmbH. He oversaw all cross-brand logistics activities and managed the intra-group logistics service provider, Urban.
Theodor Maurer was CEO and Labour Relations Director of the brand company Linde Material Handling GmbH until his departure from the KION GROUP AG Executive Board on 15 January 2015. He was also responsible for quality, facility management and health, safety & environment (HSE).
Ching Pong Quek is Chief Asia Pacific Officer and heads up the KION Group’s entire Asia business.
Dr Thomas Toepfer is Chief Financial Officer (CFO) and his responsibilities include accounting, tax & financial services, corporate finance / investor relations / M&A, controlling, HR (Labour Relations Director), legal affairs, IT, purchasing and data protection. On 15 January 2015, he also assumed responsibility for facility management / HSE and logistics / Urban.
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-related 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.
An expense of €21.0 million was recognised for the total remuneration for members of the Executive Board in 2014 (2013: €7.4 million). This consisted of short-term remuneration amounting to €5.7 million (2013: €4.9 million), post-employment benefits totalling €0.9 million (2013: €0.6 million), termination benefits of €8.8 million (2013: €0.0 million) and share-based payments of €5.6 million (2013: €1.9 million). The short-term remuneration comprised non-performance-related components amounting to €3.0 million (2013: €2.8 million) and performance-related components amounting to €2.7 million (2013: €2.2 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 awarded in the event of a successful IPO; this bonus also counts as a long-term incentive.
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 paid 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 €5.6 million (2013: €6.2 million). Furthermore, disclosure of post-employment benefits (expense of €0.9 million) and of termination benefits (expense of €8.8 million) is not required, nor of differences between variable remuneration calculated on the basis of preliminary total target achievement (benefits granted) and the one-year variable remuneration actually paid in the next year on the basis of the individual performance of each Executive Board member, which amounted to an expense of €0.3 million (allocation). On this basis, the total remuneration of the members of the Executive Board pursuant to section 314 HGB came to €10.9 million (2013: €11.1 million).
As in the previous year, no loans or advances were made to members of the Executive Board in 2014. The present value of the defined benefit obligation in respect of Executive Board members as at 31 December 2014 was €8.1 million (31 December 2013: €5.9 million).
The total remuneration paid to former members of the Executive Board in 2014 amounted to €0.2 million (2013: €0.2 million). Defined benefit obligations to former members of the Executive Board or their surviving dependants amounting to €6.1 million (2013: €5.2 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 2014 amounted to €1.2 million (2013: €0.8 million). There were no loans or advances to members of the Supervisory Board in 2014. 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 €0.7 million for employee services (2013: €0.6 million).