Remuneration report

In accordance with statutory requirements and the recommendations of the German Corporate Governance Code (the Code), this remuneration report explains the main features and structure of the remuneration system used for the Executive Board and Supervisory Board of KION GROUP AG and also discloses the remuneration of the individual members of the Executive Board and Supervisory Board for the work that they carried out on behalf of the Company and its subsidiaries in 2020. The recommendations and suggestions in the 2017 Code continue to be followed to ensure that the information in the report is transparent, comparable, and consistent. The report also reflects the requirements of German accounting standard (GAS) 17 and the HGB.

KION GROUP AG considers that transparency and clarity surrounding both the remuneration system itself and the remuneration of the individual members of the Executive Board and Supervisory Board are fundamental to good corporate governance.

Because the Act Implementing the Second Shareholder Rights’ Directive (ARUG II) essentially came into force on January 1, 2020, and because of the recommendations of the 2020 Code, the Supervisory Board decided on a new remuneration system for the members of the Executive Board of KION GROUP AG in 2020. It incorporates feedback from investors on the current remuneration system. The Supervisory Board had formed a working group to deal with this matter in 2019. In line with the first-time adoption rules of ARUG II, the new remuneration system was developed by the working group over the course of 2020. Following a discussion by the Executive Committee, the Supervisory Board then held its final discussion and adopted a resolution in December. When the declaration of conformity with the Code was submitted in December 2020, it was based on the new remuneration system and, for the future-oriented section of the declaration, was assessed against the recommendations in the 2020 Code. The new remuneration system will be presented to the 2021 Annual General Meeting for approval. It will be applied to new contracts in force from January 1, 2021.