Variable remuneration

KEEP Employee Equity Program

As at June 30, 2022, KION Group employees held options on a total of 23,137 no-par-value shares (December 31, 2021: 23,411). The total number of bonus shares granted therefore declined by 274 forfeited bonus shares in the first six months of 2022. A pro rata expense of €0.2 million was recognized for bonus shares in the first half of 2022 (H1 2021: €0.3 million).

KION performance share plan (PSP) for managers

The 2022 tranche of the long-term variable remuneration component for the managers in the KION Group (LTI 2022) was granted with effect from January 1, 2022 and has a term of three years. The financial performance targets for the 2022 tranche with a weighting of 50 percent are the relative total shareholder return (TSR) for the shares of KION GROUP AG compared with the MDAX (market-oriented measure of financial performance) and, with a weighting of 30 percent (2020 tranche and 2021 tranche: each with a weighting of 50 percent), return on capital employed (ROCE) (internal measure of financial performance). Starting with the 2022 tranche, 20 percent of the performance share plan is now linked to ESG targets. It also depends on the performance of KION GROUP AG shares during the relevant period. At the beginning of the performance period on January 1, 2022, the managers were allocated a total of 279,478 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. The maximum amount payable is limited to 250.0 percent of the value of the shares allotted to an individual at the grant date.

In March 2022, the 2019 tranche was paid on the basis of the achievement of the long-term targets that were defined in 2019 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration was €6.0 million as at June 30, 2022 (December 31, 2021: €42.7 million). Of this amount, €2.8 million related to the 2020 tranche (December 31, 2021: €15.0 million), €2.1 million to the 2021 tranche (December 31, 2021: €5.3 million), and €1.1 million to the 2022 tranche. As at December 31, 2021, there had also been an amount of €22.5 million relating to the 2019 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, 2022, the Executive Board members were allocated a total of 56,333 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 2022, the 2019 tranche was paid on the basis of the achievement of the long-term targets that were defined in 2019 at the start of the performance period.

The total carrying amount for liabilities in connection with this share-based remuneration was €2.6 million as at June 30, 2022 (December 31, 2021: €16.2 million). Of this amount, €1.2 million related to the 2020 tranche (December 31, 2021: €4.6 million), €1.1 million to the 2021 tranche (December 31, 2021: €2.5 million), and €0.3 million to the 2022 tranche. As at December 31, 2021, there had also been an amount of €9.1 million relating to the 2019 tranche.