51. Management Board and Supervisory Board
Remuneration of members of the Management Board in financial year 2018/19
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 2018/19.
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 2018/19 amounted to €9.8 million (2017/18: €7.0 million). This includes €3.5 million (2017/18: €3.7 million) in fixed salaries, €2.0 million (2017/18: €0.4 million) in short-term performance-based remuneration, €3.9 million (2017/18: €2.7 million) in performance-based remuneration with a long-term incentive effect and €0.3 million (2017/18: €0.2 million) in non-monetary and supplemental benefits.
The share and performance-based remuneration component with long-term incentive effect granted in financial year 2018/19 (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 311,477.
In financial year 2018/19, value adjustments resulted from the current tranches of performance-based payment programmes with a long-term incentive effect. The company’s expenses amounted to €0.78 million for Mr Koch, €0.50 million for Mr Baier, €1.23 million for Mr Hutmacher and €0.09 million for Mr Palazzi.
As of 30 September 2019, the provisions for the members of the Management Board totalled €3.46 million. Of this amount, €1.17 million was attributable to Mr Koch, €0.69 million to Mr Baier, €1.52 million to Mr Hutmacher and €0.09 million to Mr Palazzi.
Expenses and provisions were determined by external experts using a recognised financial mathematical procedure.
An agreement was reached with Mr Hutmacher in the reporting year for the premature termination of his service contract with effect from the end of 31 December 2019. A severance payment of €2,957,700 was agreed to settle the remaining term of his service contract (1 January 2020 to 30 September 2020) and the short-term incentive for the period from 1 October 2019 to 31 May 2019. This settlement covers Mr Hutmacher’s claims, taking into account the contractually agreed severance payment cap in accordance with the German Corporate Governance Code. The severance payment, which is due in financial year 2019/20, was fully accrued in financial year 2018/19. The tranches of the long-term incentive already granted to Mr Hutmacher will be settled in accordance with the terms of the plan.
Total compensation of former members of the Management Board
There are congruent, reinsured liabilities from pension provisions of €1.5 million towards former members of the Management Board.
Compensation of members of the Supervisory Board
The total remuneration of all members of the Supervisory Board in financial year 2018/19 amounted to €2.2 million (2017/18: €2.2 million).