The appropriateness of the remuneration depends upon the responsibilities and personal achievements of the individual Executive Board member as well as the economic situation and market environment of the company as a whole. The Supervisory Board is of the opinion that remuneration for Executive Board members should be appropriate and that their set goals should be ambitious. The remuneration of the members of the Executive Board comprises a fixed annual salary (fixed remuneration) and fringe benefits, an annual variable component based on the fiscal year and a remuneration program oriented on the companyʼs long-term goals (Long Term Incentive Plan/LTIP). A company pension is offered only in the form of deferred compensation. The company’s sustainability objectives are incorporated into individual performance goals and thereby into executive remuneration. The goals are assigned to the managers according to their areas of responsibility. Management development and succession planning were a major focus for 2015. In addition, certain items are also incentivized, such as the reduction of our (Scopes 1 and 2) CO2 emissions, the sustainable orientation of our innovation process or the sourcing of raw material from sustainable sources.
In addition, a separate global performance bonus plan is in place for about 70 managers with global or regional responsibilities. With this, we motivate managers to achieve agreed company targets by means of a variable remuneration geared toward results and performance.