Remuneration for Klöckner & Co SE Management Board members is determined by the Supervisory Board using a performance evaluation. The main criteria for the evaluation are Management Board performance and the company’s financial position. The evaluation takes net income and future prospects into account. In addition, the Supervisory Board sets quantitative and qualitative targets for each Management Board member; the degree to which targets are reached directly influences Management Board members’ remuneration.
At Klöckner & Co SE, Management Board members’ remuneration consists of three components: A fixed annual base remuneration; a variable annual bonus based on the degree to which the targets set jointly with the Supervisory Board at the beginning of the fiscal year have been met; and a virtual stock-option program with a medium-term to long-term focus.
Additionally, Management Board members are entitled to pension benefits under the rules and regulations of the Essen Association (Essener Verband) and other benefits such as company cars, etc., to the extent customary.
Management Board members’ total compensation in the fiscal year 2008 amounted to EUR 4.489 million, of which EUR 2.072 million was attributable to the fair value of the virtual stock options issued in 2008. In 2008, Management Board members also exercised VSOs (virtual stock options) from previous years valued at EUR 2.773 million.
For additional information about remuneration for Management Board members and Supervisory Board members, please refer to page 60 of the current annual report.
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