Variable remuneration

KEEP employee equity programme

As at 30 June 2018, KION Group employees held options on a total of 49,337 no-par-value shares (31 December 2017: 50,166). The total number of bonus shares granted therefore declined by 829 forfeited bonus shares in the first half of 2018. A pro-rata expense of €0.4 million for six months was recognised for bonus shares under functional costs in the first half of 2018 (H1 2017: €0.4 million).

KION performance share plan (PSP) for managers

The 2018 tranche of the long-term, variable remuneration component for the managers in the KION Group (LTI 2018) with a defined period (three years) was granted with effect from 1 January 2018. At the beginning of the performance period on 1 January 2018, 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 March 2018, a payment from the 2015 tranche was made on the basis of the achievement of the long-term targets that were defined in 2015 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration as at 30 June 2018 was €15.8 million (31 December 2017: €23.0 million). Of this amount, €9.3 million related to the 2016 tranche (31 December 2017: €7.8 million), €4.8 million to the 2017 tranche (31 December 2017: €3.9 million) and €1.7 million to the 2018 tranche. As at 31 December 2017, there had also been an amount of €11.4 million relating to the 2015 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 2018, 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 2018, a payment from the 2015 tranche was made on the basis of the achievement of the long-term targets that were defined in 2015 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration as at 30 June 2018 was €7.6 million (31 December 2017: €15.1 million). Of this amount, €4.9 million related to the 2016 tranche (31 December 2017: €4.0 million), €2.1 million to the 2017 tranche (31 December 2017: €1.6 million) and €0.6 million to the 2018 tranche. As at 31 December 2017, there had also been an amount of €9.5 million relating to the 2015 tranche.