Compensation System 2020+ | Approved by 2020 Annual General
Meeting
Voting results | AGM 2020
Compensation System 2020+ for the members of the Management Board of the General Partner
Resolution on the approval of the
Resolution on the remuneration of the members of the Supervisory Board and on the amendment of Article 13 and Article 13e (3) of the Articles of Association
Compensation System 2020+ | Key elements
Fixed components
Variable components
Short-term incentive
Multiplier: 1.05x base salary
Financial performance targets:
▪ 20% revenue
▪ 20% operating income
▪ 40% net income
Non-financial performance target: 20% sustainabilityTarget achievement cap: 120%
Long-term incentive
Multiplier: 1.35x base salary
Financial performance targets:
▪ 1/3 revenue growth
▪ 1/3 net income growth
▪ 1/3 ROICTarget achievement cap for financial performance targets: 200%
Overall proceeds cap incl. share price development: 400%
Maximum compensation for each Management Board member, depending on function
▪ Ambitious financial performance targets for both short-term and long-term incentive to ensure "Pay for Performance" alignment
▪ Non-financial performance target underlines commitment to implement Global Sustainability Program
Further design elements
Share ownership
Malus and clawback
Severance payment cap
▪ Performance- and long-term oriented structure of target compensation
New Compensation Report 2021 provides disclosure beyond new legal requirements under German Stock Corporation Act (AktG)
Highlights
2021 compensation at a glance and application of the Compensation System 2020+
Management Board compensation linked to FME's financial and non-financial targets
Ex-post target scales and target achievements
Detailed ex-post disclosure of applied target scales for long-term and short-term incentive as well as transparent disclosure of respective target achievement levels
Enhanced transparency beyond legal requirements & evolved compensation tables
Increased use of tables and graphics | Presentation of compensation and pension expense for 2021 and 2020 enhances comparability | Bonus for 2021 and 2020 disclosed incl. target achievement and payouts | Continued use of GCGC tables
In line with stakeholder demands
Collect feedback approach | Qualitative and quantitative compensation disclosures based on the demand of investors and other stakeholders | Full review of Compensation Report by auditor
Share-based compensation overview
Tables and detailed information on stock options and share-based compensation, incl. outstanding awards and vesting schedule
Enhanced transparency and comprehensibility (1/3)
Explanation of Compensation System 2020+
Pre-determined structure of target
compensation via base salary multipliers
Target setting, incl. threshold as well as target
and maximum amounts of target achievement
Explanation of financial and non-financial
performance targets, incl. weighting
Appropriateness of compensation, incl.
disclosure of composition of peer group for
horizontal review and employee groups for
vertical review
Application of Compensation System 2020+ and resulting compensation levels
Application of pre-defined performance targets
as outlined in the compensation system
Disclosure of target achievement, incl. actual
values for individual targets and resulting payout
Disclosure of long-term variable compensation:
tranches due for payment and current tranches
Present values of pension commitments
as well as amounts paid or accrued
Description of Malus/Clawback provisions and
share ownership
Disclosure of compensation to former
Management Board members (up to
10 years after departure) beyond legal
requirements
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
FMC - Fresenius Medical Care AG & Co. KGaA published this content on 30 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2022 13:22:03 UTC.