Variable remuneration

KEEP Employee Share Option Program

As at September 30, 2020, KION Group employees held options on a total of 53,040 no-par-value shares (December 31, 2019: 53,776). The total number of bonus shares granted therefore declined by 736 forfeited bonus shares in the first nine months of 2020. A pro-rata expense of €0.7 million was recognized for bonus shares in the first three quarters of 2020 (Q1–Q3 2019: €0.5 million).

KION performance share plan (PSP) for managers

The 2020 tranche of the long-term, variable remuneration component (LTI 2020) was granted to the managers in the KION Group with effect from January 1, 2020 and has a term of three years. At the beginning of the performance period on January 1, 2020, the managers were allocated a total of 260,423 phantom 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 2020, a payment from the 2017 tranche was made on the basis of the achievement of the long-term targets that were defined in 2017 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration was €20.4 million as at September 30, 2020 (December 31, 2019: €12.5 million). Of this amount, €7.5 million related to the 2018 tranche (December 31, 2019: €4.4 million), €9.1 million to the 2019 tranche (December 31, 2019: €4.4 million), and €3.8 million to the 2020 tranche. As at December 31, 2019, there had also been an amount of €3.7 million relating to the 2017 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 January 1, 2020, the Executive Board members were allocated a total of 76,656 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 2020, a payment from the 2017 tranche was made on the basis of the achievement of the long-term targets that were defined in 2017 at the start of the performance period.

In connection with the arrangement of the KfW liquidity line, the Executive Board has foregone its variable remuneration for 2020 (2018 tranche).

The total carrying amount for liabilities in connection with this share-based remuneration was €4.7 million as at September 30, 2020 (December 31, 2019: €5.8 million). Of this amount, €0.0 million related to the 2018 tranche (December 31, 2019: €2.0 million), €3.5 million to the 2019 tranche (December 31, 2019: €2.0 million), and €1.2 million to the 2020 tranche. As at December 31, 2019, there had also been an amount of €1.8 million relating to the 2017 tranche.