Variable remuneration

KEEP Employee Equity Programme

As at 30 June 2019, KION Group employees held options on a total of 43,159 no-par-value shares (31 December 2018: 43,655). The total number of bonus shares granted therefore declined by 496 forfeited bonus shares in the first half of 2019. A pro-rata expense of €0.4 million for six months was recognised for bonus shares in the first half of 2019 (H1 2018: €0.4 million).

KION Performance Share Plan (PSP) for managers

The 2019 tranche of the long-term, variable remuneration component for the managers in the KION Group (LTI 2019) was granted with effect from 1 January 2019 and has a term of three years. At the beginning of the performance period on 1 January 2019, the managers were allocated a total of 266,179 virtual shares for this tranche. The allocation was based on a particular percentage of each manager’s individual gross annual remuneration at the time of grant.

In March 2019, a payment from the 2016 tranche was made on the basis of the achievement of the long-term targets that were defined in 2016 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration as at 30 June 2019 was €9.0 million (31 December 2018: €7.7 million). Of this amount, €3.8 million related to the 2017 tranche (31 December 2018: €2.4 million), €3.1 million to the 2018 tranche (31 December 2018: €1.4 million) and €2.0 million to the 2019 tranche. As at 31 December 2018, there had also been an amount of €3.8 million relating to the 2016 tranche.

KION Performance Share Plan (PSP) for the Executive Board

The members of the Executive Board have been promised a multiple-year variable remuneration component in the form of a performance share plan with a three-year term in each case. At the beginning of the performance period on 1 January 2019, the Executive Board members were allocated a total of 111,544 phantom shares for this tranche on the basis of the starting price of KION shares (60-day average). The shares were allocated on the basis of an allocation value in euros specified in each Executive Board member’s service contract.

In March 2019, a payment from the 2016 tranche was made on the basis of the achievement of the long-term targets that were defined in 2016 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration as at 30 June 2019 was €4.2 million (31 December 2018: €3.8 million). Of this amount, €1.9 million related to the 2017 tranche (31 December 2018: €1.1 million), €1.4 million to the 2018 tranche (31 December 2018: €0.5 million) and €0.9 million to the 2019 tranche. As at 31 December 2018, there had also been an amount of €2.1 million relating to the 2016 tranche.