[47] Remuneration of the Executive Board and Supervisory Board
Executive Board
Responsibilities
The responsibilities of the members of the Executive Board are disclosed in the declaration on corporate governance.
Remuneration
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 (see also note [46]). The pension entitlements consist of retirement, invalidity, and surviving dependants’ benefits.
The total remuneration of the members of the Executive Board pursuant to IFRS is as follows:
in € million |
2020 |
2019 |
|---|---|---|
Non-performance-related components |
3.8 |
4.5 |
Performance-related components |
0.6 |
3.6 |
Termination benefits |
2.4 |
4.8 |
Total short-term remuneration |
6.8 |
12.9 |
Share-based payments |
1.8 |
4.1 |
Post-employment benefits |
0.8 |
1.3 |
Total long-term remuneration |
2.6 |
5.4 |
|
|
|
Total remuneration (IFRS) |
9.5 |
18.3 |
The performance-related components of the Executive Board’s remuneration were lower in 2020 because of the decrease in bonus commitments.
Under section 314 of the German Commercial Code (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 equalization, amounted to €4.8 million (2019: €5.7 million). Furthermore, disclosure of the current service cost (€0.8 million; 2019: €1.3 million) is not required, nor is disclosure of the termination benefits (€2.4 million; 2019: €4.8 million). On this basis, the total remuneration of the members of the Executive Board pursuant to section 314 HGB came to €8.9 million (2019: €13.8 million).
As at December 31, 2020, no loans or advances had been extended to members of the Executive Board. This had also been the case on December 31, 2019. The present value of the defined benefit obligation in respect of Executive Board members as at December 31, 2020 was €11.5 million (December 31, 2019: €10.9 million).
The total remuneration paid to former members of the Executive Board and Management Board of KION GROUP AG’s legal predecessors amounted to €0.3 million (2019: €0.3 million). Pension entitlements of former members of the Management Board or their surviving dependants amounting to €12.0 million (December 31, 2019: €11.7 million) were recognized in accordance with IFRS.
Further details of Executive Board remuneration, including the individual amounts for each member, can be found in the remuneration report, which is part of the combined management report of KION GROUP AG.
Supervisory Board
The total remuneration paid to the members of the Supervisory Board for the performance of their tasks at the parent company and subsidiaries in 2020 amounted to €1.5 million (2019: €1.5 million) excluding VAT. There were no loans or advances to members of the Supervisory Board in 2020. Members of the Supervisory Board also received short-term employee benefits of €0.8 million for employee services (2019: €0.8 million), including the employer’s share of the social-security contribution.
Further details of Supervisory Board remuneration, including the individual amounts for each member, can be found in the remuneration report, which is part of the combined management report of KION GROUP AG.
The total remuneration of the members of the Executive Board and Supervisory Board came to €10.9 million (2019: €19.8 million).