Remuneration of the Executive Board and Supervisory Board
Gordon Riske, Chief Executive Officer (CEO), is responsible for the LMH EMEA, STILL EMEA, and KION Americas operating units in the Industrial Trucks & Services segment and the Dematic operating unit in the Supply Chain Solutions segment. He also remains in charge of the following group functions: corporate strategy, corporate communications, corporate office, internal audit, corporate compliance and KION Warehouse Systems.
Dr Eike Böhm, in his role as Chief Technology Officer (CTO), has groupwide responsibility for research and development (R&D) and for product and technology strategy, including innovation, the production system, quality assurance and procurement.
Ching Pong Quek, Chief Asia Pacific Officer, heads up the KION APAC operating unit and thus the entire Asia business within the Industrial Trucks & Services segment.
Dr Thomas Toepfer is Chief Financial Officer (CFO) and his responsibilities include corporate accounting & tax, financial services, corporate finance, corporate controlling, corporate HR / Labour Relations Director, legal affairs, KION Group IT, data protection, health, safety & environment 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 comprise an annually recurring component linked to business performance and a multi-year performance-related component in the form of the KION performance share plan for all members of the Executive Board. The pension entitlements consist of retirement, invalidity and surviving dependants’ benefits.
An expense of €15.5 million was recognised for the total remuneration for members of the Executive Board in 2016 (2015: €16.7 million). This consisted of short-term remuneration amounting to €5.0 million (2015: €4.8 million), post-employment benefits totalling €1.0 million (2015: €0.9 million), termination benefits of €0.4 million (2015: €1.5 million) and share-based payments of €9.0 million (2015: €9.6 million). The short-term remuneration comprised non-performance-related components amounting to €2.6 million (2015: €2.3 million) and performance-related components amounting to €2.4 million (2015: €2.5 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 also note ).
Under section 314 HGB, disclosure of the expense for share-based payments is not required. Rather, the payments 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, including tax equalisation, amounted to €4.8 million (2015: €4.6 million). Furthermore, disclosure of post-employment benefits (expense of €1.0 million; 2015: expense of €0.4 million) and of termination benefits (expense of €0.4 million; 2015: expense of €1.5 million) is not required. On this basis, the total remuneration of the members of the Executive Board pursuant to section 314 HGB came to €9.8 million (2015: €9.4 million).
As in the previous year, no loans or advances were made to members of the Executive Board in 2016. The present value of the defined benefit obligation in respect of Executive Board members as at 31 December 2016 was €7.5 million (31 December 2015: €6.1 million).
The total remuneration paid to former members of the Executive Board in 2016 amounted to €0.2 million (2015: €0.2 million). Defined benefit obligations to former members of the Executive Board or their surviving dependants amounting to €9.8 million (31 December 2015: €8.8 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 2016 amounted to €1.2 million (2015: €1.2 million). There were no loans or advances to members of the Supervisory Board in 2016. 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 €0.8 million for employee services (2015: €0.8 million).