[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 corporate governance statement (see ‘Working methods of the Executive Board and Supervisory Board and composition of the committees of the Supervisory Board; shareholders and Annual General Meeting’).
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 Executive Board members in the year under review pursuant to IFRS is as follows:
in € million |
2022 |
2021 |
|---|---|---|
Non-performance-related components |
5.1 |
5.8 |
Performance-related components |
1.7 |
6.6 |
Termination benefits |
3.4 |
2.1 |
Total short-term remuneration components |
10.2 |
14.6 |
Change in fair value of share-based payments |
–3.2 |
11.0 |
Post-employment benefits |
0.6 |
0.5 |
Total long-term remuneration components |
–2.6 |
11.5 |
|
|
|
Total remuneration (IFRS) |
7.6 |
26.0 |
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 Mr. Quek’s tax equalization agreement, amounted to €5.6 million (2021: €7.2 million). Furthermore, disclosure of the current service cost (€0.6 million; 2021: €0.5 million) is not required, nor is disclosure of the termination benefits (€3.4 million; 2021: €2.1 million). On this basis, the total remuneration of the members of the Executive Board pursuant to section 314 (1) no. 6a HGB came to €12.5 million (2021: €19.6 million).
As at December 31, 2022, no loans or advances had been extended to members of the Executive Board. This had also been the case as at December 31, 2021. The present value of the defined benefit obligation in respect of Executive Board members as at December 31, 2022 was €3.2 million (December 31, 2021: €13.2 million).
The total remuneration paid to former members of the Executive Board of KION GROUP AG and its legal predecessors amounted to €0.4 million (2021: €0.3 million). Pension entitlements of former members of the Executive Board or their surviving dependants amounting to €20.5 million (December 31, 2021: €13.1 million) were recognized in accordance with IFRS.
Further details of Executive Board remuneration, including the individual amounts for each member, are presented in KION GROUP AG’s separate 2022 remuneration report, which is available on the KION Group website.
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 2022 amounted to €1.5 million (2021: €1.4 million) excluding VAT and consisted entirely of short-term benefits. There were no loans or advances to members of the Supervisory Board in 2022. Members of the Supervisory Board also received short-term employee benefits of €0.8 million for employee services (2021: €0.9 million), including the employer’s share of the social-security contribution.
Further details of Supervisory Board remuneration, including the individual amounts for each member, are presented in KION GROUP AG’s separate 2022 remuneration report, which is available on the KION Group website.
The total remuneration of the members of the Executive Board and Supervisory Board came to €9.0 million (2021: €27.5 million).