Variable remuneration

KEEP employee share option programme

As at 30 June 2017, KION Group employees held options on a total of 66,406 no-par-value shares (31 December 2016: 67,106). The total number of bonus shares granted therefore declined by 700 forfeited bonus shares in the first half of 2017. A pro-rata expense of €0.4 million for six months was recognised for bonus shares under functional costs in the first half of 2017 (H1 2016: €0.3 million).

KION performance share plan (PSP) for managers

The 2017 tranche of the long-term, variable remuneration component for the managers in the KION Group (LTI 2017) with a defined period (three years) was granted with effect from 1 January 2017. At the beginning of the performance period on 1 January 2017, the managers were allocated a total of 0.2 million phantom shares for this tranche with a specific fair value. The allocation was based on a particular percentage of each manager’s individual gross annual remuneration at the time of grant.

In April 2017, the first payment from the 2014 tranche was made on the basis of the achievement of the long-term targets that were defined in 2014 at the start of the performance period.

The total carrying amount for liabilities in connection with share-based remuneration relating to the current tranches as at 30 June 2017 was €16.8 million (31 December 2016: €9.7 million). Of this amount, €9.4 million related to the 2015 tranche (31 December 2016: €7.1 million), €5.6 million to the 2016 tranche (31 December 2016: €2.6 million) and €1.8 million to the 2017 tranche.


KION performance share plan (PSP) for the Executive Board

As part of the KION GROUP AG performance share plan, the Executive Board members are allocated phantom shares over a fixed period (three years). At the beginning of the performance period on 1 January 2017, the Executive Board members were allocated a total of 0.1 million phantom shares for this tranche with a specific fair value. The shares were allocated on the basis of an allocation value in euros specified in each Executive Board member’s service contract.

In March 2017, a payment from the 2014 tranche was made on the basis of the achievement of the long-term targets that were defined in 2014 at the start of the performance period.

The total carrying amount for liabilities in connection with share-based remuneration relating to the current tranches as at 30 June 2017 was €12.5 million (31 December 2016: €7.6 million). Of this amount, €8.0 million related to the 2015 tranche (31 December 2016: €6.0 million), €3.6 million to the 2016 tranche (31 December 2016: €1.6 million) and €1.0 million to the 2017 tranche.