Annual Report 2014

Remuneration Report

The Board of Management is in charge of operations. It comprises three members and is overseen by the Supervisory Board in accordance with the statutory requirements and the articles of incorporation. The members of the Board of Management and Supervisory Board are listed in the “Corporate Bodies” section. The Declaration of Compliance pursuant to Section 161 of the German Stock Corporation Act, as well as further explanatory notes, can be found in the separate Corporate Governance Report, which forms part of this Annual Report. The Remuneration Report contains the itemised remuneration by individual member of the Board of Management and Supervisory Board of technotrans AG, as well as particulars of fringe benefits provided by the company for each individual member. The basic features of the remuneration system are also explained there.

Remuneration System of the Board of Management

The remuneration system of the Board of Management reflects the current standards and statutory requirements. The total cash remuneration of a Board of Management member comprises a fixed basic remuneration and a variable remuneration component (management bonus). The variable remuneration component is equivalent to the fixed remuneration if the targets are fully met; in other words, in that instance the total cash remuneration comprises equal amounts of fixed and variable remuneration. The precise level of the variable remuneration component is determined by target attainment in a given financial year. Revenue and consolidated net income for the year serve as the basis for the targets for budgeting purposes. If the agreed targets are exceeded, the variable remuneration component is increased, this increase being capped at a multiple of 2.5. The variable remuneration component is paid out over a three-year period in instalments of 50, 30 and 20 percent and in relation to actual target attainment. There is no entitlement to a management bonus in the event of a net loss for the year or if target attainment is less than 50 percent in the assessment year. The sustainability-oriented management bonus is only paid out to the extent that the respective targets for the assessment year are attained in subsequent years. The deferred management bonus component may therefore fall, but it can no longer rise. If target attainment falls below 80 percent of the level achieved in the assessment year, the sustainability-oriented management bonus component lapses. If a Board of Management member leaves the company, their entitlement to a management bonus from previous years does not automatically lapse.

The company moreover provides fringe benefits (insurance premiums) in the form of contributions to a provident fund and a group accident insurance policy. In addition, company cars are available to the members of the Board of Management and they are reimbursed travel and other allowable expenses. The policies for the D&O insurance cover taken out by the company for the Board of Management members envisage an excess amounting to one and a half times the fixed annual income.

There is also a cap on termination indemnities amounting to a maximum of one year’s salary.

The overall remuneration of each Board of Management member is approved by the Supervisory Board. No share-based payment components were envisaged for the 2014 financial year. The level of target attainment in the 2014 assessment year was 100 percent according to the target agreement (previous year: 60.7 percent). Only in the event of exceptional occurrences is the Supervisory Board authorised to adjust the remuneration parameters in the course of a given year.

The members of the Board of Management received the following remuneration in the past financial year:

    Henry Brickenkamp   Dirk Engel   Dr. Christof Soest
€ '000   2014 2013   2014 2013   2014 2013
Fixed basic remuneration   200 200   160 160   160 160
Fringe benefits   49 48   46 46   45 43
Management bonus, year under review   176 145   140 116   140 94
Total remuneration   425 393   346 322   345 297
Entitlement dependent on
the attainment of future
performance targets
  124 100   99 80   99 80

Remuneration of the Supervisory Board

In accordance with the articles of incorporation approved by the Shareholders’ Meeting, the members of the Supervisory Board receive remuneration comprising a fixed and a variable component, in addition to reimbursement of their expenses. The level of the variable remuneration component is based on the consolidated net income declared in the Consolidated Financial Statements. Under the articles of incorporation, this variable remuneration component is not expressly a reflection of sustainable corporate performance. Both the fixed and the variable remuneration component are higher for the Chairman and Vice Chairman of the Supervisory Board than for the remaining members. Membership of the committees formed by the Supervisory Board is likewise remunerated, in accordance with the articles of incorporation. The members of the Supervisory Board do not receive any stock options for their activities as non-executive directors. The company has taken out D&O insurance cover for the members of the Supervisory Board. There is an excess equivalent to the variable remuneration component in the year in which a claim is established.

In addition to the total remuneration stated for the Supervisory Board, the employees’ representatives on the Supervisory Board receive remuneration in their capacity as employees, on the basis of their contracts of employment, and also receive share-based payments.

In accordance with the articles of incorporation the Supervisory Board members received the following remuneration for the year under review of 2014:

  2014 2013
€ '000  Total
remuneration
of which
fixed
of which
variable
  Total
remuneration
of which
fixed
of which
variable
Heinz Harling  38 22 16 33 22 11
Dr. Norbert Bröcker  27 15 12 23 15 8
Helmut Ruwisch  23 15 8 20 15 5
Dieter Schäfer  19 11 8 17 11 6
Reinhard Aufderheide 1  16 8 8 8 5 3
Thomas Poppenberg 1  16 8 8 8 5 3
Klaus Beike 2  0 0 0 5 3 2
Matthias Laudick 2  0 0 0 5 3 2
Total remuneration  138 79 59   119 79 40