51. Management Board and Supervisory Board
Remuneration of members of the Management Board in financial year 2017/18
The remuneration of the active members of the Management Board essentially consists of a fixed salary, a short-term performance-based remuneration component (short-term incentive and special bonuses), as well as the performance-based remuneration component with a long-term incentive effect (long-term incentive) granted in financial year 2017/18.
The short-term incentive for members of the Management Board is essentially determined by the development of financial performance targets related to that financial year and also considers the attainment of agreed-upon targets.
The remuneration of the active members of the Management Board in financial year 2017/18 amounted to €7.0 million (2016/17: €5.9 million). Of this amount, €3.7 million (2016/17: €1.1 million) were attributable to fixed salaries, €0.4 million (2016/17: €1.1 million) to the short-term performance-based remuneration, €2.7 million (2016/17: €3.7 million) to the share- and performance-based remuneration with long-term incentive effect and €0.2 million (2016/17: €0.02 million) to non-monetary and supplemental benefits.
The share- and performance-based remuneration component with long-term incentive effect granted in financial year 2017/18 (performance share plan) was recognised at fair value as of the date granted. The number of conditionally allocated performance shares for the members of the Management Board amounts to a total of 248,346.
In financial year 2017/18, value adjustments resulted from the current tranches of performance-based payment programmes with a long-term incentive effect. The company’s expenses amounted to €0.12 million for Mr Koch, €0.06 million for Mr Baier, €0.03 million for Mr Boone, €0.09 million for Mr Hutmacher and €0.45 million for Mr Palazzi.
As of 30 September 2018, the provisions for the members of the Management Board totalled €1.79 million. Of this amount, €0.39 million was attributable to Mr Koch, €0.19 million to Mr Baier, €0.29 million to Mr Hutmacher and €0.92 million to Mr Palazzi.
Expenses and provisions were determined by external experts using a recognised financial mathematical procedure.
Total remuneration of former members of the Management Board
Former members of the Management Board of METRO AG received benefits in the amount of €6.2 million.
There are congruent, reinsured liabilities from pension provisions of €1.6 million towards former members of the Management Board.
Compensation of members of the Supervisory Board
The total compensation paid to all members of the Supervisory Board in financial year 2017/18 amounts to €2.2 million (2016/17: €0.8 million).