III. Remuneration for members of the Executive Board in 2019

In accordance with the recommendations of the DCGK, as amended on 7 February 2017, the remuneration of Executive Board members is presented in two separate tables. Firstly, the benefits granted for the year under review, including the additional benefits and – in the case of variable remuneration components – the maximum and minimum remuneration achievable are shown. > TABLE 032

Secondly, > TABLE 033 shows the total remuneration allocated / earned, comprising fixed remuneration, short-term variable remuneration and long-term variable remuneration, broken down by reference year.

1) Benefits granted pursuant to the DCGK

The total remuneration granted to Executive Board members for 2019 was €14,025 thousand (minimum: €5,826 thousand, maximum: €22,224 thousand) (2018: €13,148 thousand). Of this amount, €4,276 thousand (2018: €3,628 thousand) was attributable to fixed non-performance-related remuneration components, €8,199 thousand (minimum: €0 thousand, maximum: €16,398 thousand) (2018: €7,722 thousand) to variable one-year and multiple-year performance-related remuneration components, €272 thousand (2018: €841 thousand) to non-performance-related non-cash remuneration and other benefits and €1,277 thousand (2018: €957 thousand) to the pension expense in accordance with IFRS. The figure shown for one-year variable remuneration is based on a target achievement rate of 100 per cent (minimum: 0 per cent for target achievement of 70 per cent or less, maximum: 200 per cent for target achievement of 130 per cent or more). The figure shown for multiple-year variable remuneration is the fair value of the performance share plan at the date of grant, representing full target achievement (minimum: zero payment, maximum: 200 per cent of the contractual allocation value).

The additional benefits were measured at the value calculated for tax purposes. > TABLE 032

Gordon Riske

Dr Eike Böhm

Anke Groth

Ching Pong Quek

Susanna Schneeberger

Dr Thomas Toepfer

2) Allocation pursuant to the DCGK

The total remuneration allocated to / earned by Executive Board members for 2019 was €11,303 thousand (2018: €9,320 thousand). Of this amount, €4,276 thousand (2018: €3,628 thousand) was attributable to fixed non-performance-related remuneration components, €5,477 thousand (2018: €3,894 thousand) to variable one-year and multiple-year performance-related remuneration components, €272 thousand (2018: €841 thousand) to non-performance-related non-cash remuneration and other benefits and €1,277 thousand (2018: €957 thousand) to the pension expense in accordance with IFRS. The figure shown for one-year variable remuneration is derived from a preliminary total target achievement rate of about 113 per cent based on the budgeted figure. This target achievement rate was calculated using preliminary earnings figures at the beginning of 2020 and equates to a payout of around 145 per cent of the target value for one-year variable remuneration. The preliminary variable remuneration for each Executive Board member is also subject to adjustment by the Supervisory Board in line with the individual performance of the Executive Board member. This adjustment may vary by plus or minus 30 per cent of the variable remuneration. Ms Schneeberger’s performance multiple was set at 1.0 for year 2019, i.e. there was no individual adjustment. For the multiple-year variable remuneration, a payment from the 2017 tranche of the performance share plan will be made in spring 2020 on the basis of the achievement of the long-term targets that were defined in 2017 at the start of the performance period. The value shown for 2019 is also calculated on the basis of a preliminary total target achievement rate of about 46 per cent and is subject to the performance-based adjustment made by the Supervisory Board (using a discretionary performance multiple) for individual Executive Board members. Under the terms of the plan at the grant date, this performance-based adjustment may vary by plus or minus 30 per cent.

The additional benefits were measured at the value calculated for tax purposes. > TABLE 033

Gordon Riske

Dr Eike Böhm

Anke Groth

Ching Pong Quek

Susanna Schneeberger

Dr Thomas Toepfer

In its meeting on 19 December 2019, the Supervisory Board authorised the chairman of the Supervisory Board to hold talks with Ms Susanna Schneeberger regarding the early termination of her appointment as a member of the Executive Board of KION GROUP AG, the termination of her Executive Board service contract including the conclusion of a termination agreement, and regarding the appropriate arrangements required in accordance with the law and her contract. As a result of the talks, mutual agreement was reached with Ms Schneeberger that she would step down on 12 January 2020 and that her Executive Board service contract would be terminated on 31 March 2020.

Of the total amount of €4,771 thousand paid to Ms Schneeberger resulting from the termination agreement, €4,461 thousand was attributable to non-performance-related remuneration components, €87 thousand to a performance-related component with no long-term incentive, €118 thousand to a performance-related component with a long-term incentive (a pro rata amount for the 2018 and 2019 tranches in accordance with the rules of the performance share plan as at 31 December 2019), €73 thousand to the pro rata allocation of this component for 2020 and €33 thousand to pension expenses.

The table below shows the pension contributions (additions to the plan) attributable to each individual Executive Board member and their separate present values in accordance with IFRS and HGB > TABLES 034 – 035.

The total remuneration paid to former members of the Executive Board in 2019 amounted to €262 thousand (2018: €258 thousand). Provisions for defined benefit obligations to former members of the Executive Board or their surviving dependants amounting to €11,672 thousand (2018: €10,463 thousand) were recognised in accordance with IAS 19.

In the year under review, no advances were made to members of the Executive Board, and there were no loans.