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Annual Report 2016

Remuneration 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 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. At its meeting on March 9, 2016 the Supervisory Board decided to grant a special management bonus of € 50,000.00 to each Board of Management member in the event of the successful acquisition of GWK Gesellschaft Wärme Kältetechnik mbH. Through this special management bonus, the Supervisory Board not only wishes to recognise the previous contribution of the Board of Management towards the successful completion of the acquisition of the interest in GWK Gesellschaft Wärme Kältetechnik mbH; this is simultaneously also an expression of its clear expectation that the Board of Management will continue to strive in particular measure for the successful integration and development of GWK Gesellschaft Wärme Kältetechnik mbH. The payment was disbursed following completion of the acquisition of the interest in November 2016. No share-based payment components were envisaged for the 2016 financial year.

The level of target attainment for measurement of the variable remuneration component in the 2016 financial year was 115 percent according to the target agreement (previous year: 109 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
in € '000 2016 2015 2016 2015 2016 2015
Fixed basic remuneration 220 210 176 168 176 168
Fringe benefits 51 50 49 48 45 45
Management bonus, year under review 272 193 227 155 227 155
Total remuneration 543 453 452 371 448 368
Entitlement dependent on the attainment
of future performance targets
160 149 128 119 128 119

Remuneration of the Supervisory Board

In accordance with the Articles of Incorporation approved by the Annual General 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 2016:

  2016   2015  
in € '000 Total
remuneration
of which
fixed
davon
variabel
Total
remuneration
of which
fixed
of which
variable
Heinz Harling 50 22284622 24
Dr. Norbert Bröcker 36 15213315 18
Dr. Wolfgang Höper** 17 98  
Helmut Ruwisch* 12 662715 12
Dieter Schäfer 25 11142311 12
Reinhard Aufderheide 22 814208 12
Thomas Poppenberg 22 814208 12
Total remuneration 184 7910516979 90