III. Remuneration for members of the Executive Board in 2020

In accordance with the recommendations of the 2017 Code, 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 in the > table ‘Benefits granted in 2020’.

Secondly, the > table ‘Allocation in 2020’ 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 Code

The total remuneration granted to Executive Board members for 2020 was €11,560 thousand (minimum: €4,691 thousand, maximum: €18,429 thousand) (2019: €14,025 thousand). Of this amount, €3,642 thousand (2019: €4,276 thousand) was attributable to fixed non-performance-related remuneration components, €6,869 thousand (minimum: €0 thousand, maximum: €13,738 thousand) (2019: €8,199 thousand) to variable one-year and multiple-year performance-related remuneration components, €206 thousand (2019: €272 thousand) to non-performance-related non-cash remuneration and other benefits, and €843 thousand (2019: €1,277 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 percent (minimum: 0 percent for target achievement of 70 percent or less, maximum: 200 percent for target achievement of 130 percent 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 percent of the contractual allocation value).

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

Gordon Riske

Dr. Eike Böhm

Anke Groth

Ching Pong Quek

Susanna Schneeberger

2) Allocation pursuant to the Code

The total remuneration allocated to / earned by Executive Board members for 2020 was €4,830 thousand (2019: €11,870 thousand). Of this amount, €3,642 thousand (2019: €4,276 thousand) was attributable to fixed non-performance-related remuneration components, €140 thousand (2019: €6,045 thousand) to variable one-year and multiple-year performance-related remuneration components, €206 thousand (2019: €272 thousand) to non-performance-related non-cash remuneration and other benefits, and €843 thousand (2019: €1,277 thousand) to the pension expense in accordance with IFRS. In connection with the agreement of the KfW liquidity line, the Executive Board waived its one-year and multiple-year variable remuneration (2018 tranche of the performance share plan) for 2020. For Ms. Schneeberger, the arrangements in her termination agreement continue to apply. For the one-year variable remuneration, the target achievement rate was calculated using preliminary earnings figures at the beginning of 2021 and equates to a payout of 0 percent of the target value. Ms. Schneeberger’s performance multiple was set at 1.0 for 2020, i.e. there was no individual adjustment. For Ms. Schneeberger’s multiple-year variable remuneration, a payment from the 2018 tranche of the performance share plan will be made in spring 2021 on the basis of the achievement of the long-term targets that were defined in 2018 at the start of the performance period. The value shown for 2020 is also calculated on the basis of a preliminary total target achievement rate of about 32 percent. Ms. Schneeberger’s performance multiple was set at 1.0 for the 2018 tranche, i.e. there was no individual adjustment.

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

Gordon Riske

Dr. Eike Böhm

Anke Groth

Ching Pong Quek

Susanna Schneeberger

The total payments made to former members of the Executive Board in 2020 in connection with the termination of their Executive Board service contracts amounted to €4,521 thousand. An appropriate provision had been recognized for these payments in 2019. These payments comprised a non-performance-related salary, non-performance-related non-cash benefits, performance-related remuneration, and pension entitlements.

The total amount for Ms. Schneeberger of €4,521 thousand includes a non-performance-related component of €4,462 thousand, a performance-related component of €24 thousand with a long-term incentive for the 2018 tranche based on a preliminary total target achievement rate, and pension expenses of €35 thousand.

At its meeting on December 17, 2020, the Supervisory Board put in place the succession arrangements for the role of CTO on the Executive Board. Agreement was reached with Dr. Böhm that his appointment as a member of the Executive Board of KION GROUP AG would end early. The chairman of the Supervisory Board was authorized to conclude the necessary termination agreement in accordance with the law and the contractual arrangements. Dr. Böhm is due to step down from his role on June 30, 2021. His Executive Board service contract is also due to end on that date. At the time that this remuneration report was prepared, these talks were still ongoing.

The following amounts are therefore preliminary. The total amount of €2,406 thousand for Dr. Böhm’s termination agreement arising from his Executive Board service contract includes a non-performance-related component of €725 thousand, a performance-related component of €433 thousand with no long-term incentive, a performance-related component of €1,085 thousand with a long-term incentive (the fair value of the 2019 and 2020 tranches in accordance with the rules of the performance share plan as at December 31, 2020 plus the pro rata allocation value for 2021 and 2022), and pension expenses of €163 thousand. Appropriate provisions were recognized to cover these payments as at the reporting date.

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.

In addition to the remuneration for 2020 described above for Ms. Schneeberger, the total remuneration paid to former members of the Executive Board amounted to €266 thousand in 2020 (2019: €262 thousand). Provisions for defined benefit obligations to former members of the Executive Board or their surviving dependants amounting to €11,997 thousand (2019: €11,672 thousand) were recognized 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.