III. Remuneration for members of the Executive Board in 2018

In accordance with the recommendations of the DCGK, as amended on 7 February 2017, the remuneration of Executive Board members is presented in two separate tables. Firstly, the benefits granted for the year under review, including the additional benefits and – in the case of variable remuneration components – the maximum and minimum remuneration achievable are shown. > TABLE 033

Secondly, > TABLE 034 shows the total remuneration allocated / earned, comprising fixed remuneration, short-term variable remuneration and long-term variable remuneration, broken down by reference year.

1) Benefits granted pursuant to the DCGK

The total remuneration granted to Executive Board members for 2018 was €13,148 thousand (minimum: €5,426 thousand, maximum: €20,871 thousand) (2017: €10,279 thousand). Of this amount, €3,628 thousand (2017: €2,958 thousand) was attributable to fixed non-performance-related remuneration components, €7,722 thousand (minimum: €0 thousand, maximum: €15,444 thousand) (2017: €6,051 thousand) to variable one-year and multiple-year performance-related remuneration components, €841 thousand (2017: €186 thousand) to non-performance-related non-cash remuneration and other non-performance-related benefits and €957 thousand (2017: €1,084 thousand) to the pension expense in accordance with IFRS. The figure shown for one-year variable remuneration is based on a target achievement rate of 100 per cent (minimum: 0 per cent for target achievement of 70 per cent or less, maximum: 200 per cent for target achievement of 130 per cent or more). The figure shown for multiple-year variable remuneration is the fair value of the performance share plan at the date of grant, representing full target achievement (minimum: zero payment, maximum: 200 per cent of the contractual allocation value).

The additional benefits were measured at the value calculated for tax purposes. > TABLE 033

Gordon Riske

Dr Eike Böhm

Anke Groth

Ching Pong Quek

Susanna Schneeberger

Dr Thomas Toepfer

2) Allocation pursuant to the DCGK

The total remuneration allocated to / earned by Executive Board members for 2018 was €9,381 thousand (2017: €15,426 thousand). Of this amount, €3,628 thousand (2017: €2,958 thousand) was attributable to fixed non-performance-related remuneration components, €3,955 thousand (2017: €11,197 thousand) to variable one-year and multiple-year performance-related remuneration components, €841 thousand (2017: €186 thousand) to non-performance-related non-cash remuneration and other non-performance-related benefits and €957 thousand (2017: €1,084 thousand) to the pension expense in accordance with IFRS. The figure shown for one-year variable remuneration is derived from a preliminary total target achievement rate of about 95 per cent based on the budgeted figure. This target achievement rate was calculated using preliminary earnings figures at the beginning of 2019 and equates to a payout of around 83 per cent of the target value for one-year variable remuneration. This preliminary variable remuneration for each Executive Board member is also subject to adjustment by the Supervisory Board in line with the individual performance of the Executive Board member. This adjustment may vary by plus or minus 30 per cent of the variable remuneration. Because Ms Groth and Ms Schneeberger were appointed to the Executive Board part way through the year, their performance multiples were set at 1.0 for 2018, i.e. there was no individual adjustment. The same applies to Dr Toepfer’s pro-rata entitlement for 2018; a performance multiple of 1.0 was also set for him because he left the Company during the year.

For the multiple-year variable remuneration, a payment from the 2016 tranche of the performance share plan will be made in spring 2019 on the basis of the achievement of the long-term targets that were defined in 2016 at the start of the performance period. The value shown for 2018 is also calculated on the basis of a preliminary total target achievement rate of about 47 per cent and is subject to the performance-based adjustment made by the Supervisory Board (using a discretionary performance multiple) for individual Executive Board members. Under the terms of the plan at the grant date, this performance-based adjustment may vary by plus or minus 20 per cent.

The additional benefits were measured at the value calculated for tax purposes. > TABLE 034

Gordon Riske

Dr Eike Böhm

Anke Groth

Ching Pong Quek

Susanna Schneeberger

Dr Thomas Toepfer

The table below shows the pension contributions (additions to the plan) attributable to each individual Executive Board member and their separate present values in accordance with IFRS and HGB > TABLES 035 – 036.

The total remuneration paid to former members of the Executive Board in 2018 amounted to €258 thousand (2017: €254 thousand). Provisions for defined benefit obligations to former members of the Executive Board or their surviving dependants amounting to €10,463 thousand (2017: €9,765 thousand) were recognised in accordance with IAS 19.

In the year under review, no advances were made to members of the Executive Board, and there were no loans.