Variable remuneration

KEEP Employee Equity Program

As at June 30, 2021, KION Group employees held options on a total of 40,172 no-par-value shares (December 31, 2020: 40,529). The total number of bonus shares granted therefore declined by 357 forfeited bonus shares in the first six months of 2021. A pro rata expense of €0.3 million was recognized for bonus shares in the first half of 2021 (H1 2020: €0.4 million).

KION performance share plan (PSP) for managers

The 2021 tranche of the long-term variable remuneration component for the managers in the KION Group (LTI 2021) was granted with effect from January 1, 2021 and has a term of three years. At the beginning of the performance period on January 1, 2021, the managers were allocated a total of 205,142 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 2021, the 2018 tranche was paid on the basis of the achievement of the long-term targets that were defined in 2018 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration was €29.2 million as at June 30, 2021 (December 31, 2020: €17.3 million). Of this amount, €18.2 million related to the 2019 tranche (December 31, 2020: €9.4 million), €8.6 million to the 2020 tranche (December 31, 2020: €4.4 million), and €2.4 million to the 2021 tranche. As at December 31, 2020, there had also been an amount of €3.5 million relating to the 2018 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, 2021, the Executive Board members were allocated a total of 85,081 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 connection with the arrangement of the KfW liquidity line, the Executive Board forewent its variable remuneration for 2020 (2018 tranche).

The total carrying amount for liabilities in connection with this share-based remuneration was €11.8 million as at June 30, 2021 (December 31, 2020: €5.2 million). Of this amount, €7.4 million related to the 2019 tranche (December 31, 2020: €3.8 million), €2.9 million to the 2020 tranche (December 31, 2020: €1.4 million), and €1.5 million to the 2021 tranche.