Compensation System - Total Remuneration of the Executive Board
The remuneration of Schweizer’s Executive Board consists of a fixed
and a variable component. The latter is divided into a component that
is geared to the achievement of defined targets for the respective
current financial year as well as a component with a long-term
incentive effect and risk character.
Changed regulations according to stock corporation law on
remunerations for executive boards, according to the law on
adequateness of remunerations for executive boards (“VorstAG”) as of
July 31, 2009, are applied to the contracts of Schweizer’s Executive
Board members. Contracts issued before July 31, 2009 have been modified
The fixed income component of the Executive Board’s remuneration is
not tied to the achievement of defined targets and is paid out monthly.
The variable income component, referring to the targets of a financial
year, is geared to achieving certain quantitative and qualitative
targets. The quantitative targets, being accorded the highest weight,
are about Economic Value Added® (EVA®) and the improvement of Economic
Value Added® compared to the previous year (∆EVA®). Furthermore,
individual target settings are taken into consideration which are being
agreed upon with the members of the Executive Board. Payment of this
income component is made after the Supervisory Board’s appraisal and
approval of the year-end closing. The amount is determined by the level
of target achievement and is capped.
In addition to the two previously mentioned income components for the Executive Board, a so-called Long Term Incentive Program
(“LTIP“) is available for the members of the Executive Board. This
LTIP is a remuneration component with long-term incentive effect and
risk character in the form of a “share matching plan“ with a four-year
ban on sale.