Compensation report
Executive Board compensation for the 2010 fiscal
year
The Executive Board compensation system is geared
toward long-term, sustainable management goals. Total
compensation for members of the Executive Board is
set by the Supervisory Board. The compensation system for the
Executive Board is also decided and regularly reviewed by the
Supervisory Board. The Supervisory Board’s Human
Resources Committee prepares
the relevant motions for resolution by the full Supervisory Board.
The compensation system was approved
by a large majority at the ordinary General Shareholders’
Meeting on May 11, 2010.
Executive Board member compensation comprises a
fixed salary supplemented by variable, performance-linked
components. The fixed component constitutes
basic compensation not linked to performance and is
paid as a monthly salary; Executive Board members
additionally receive supplementary compensation in
the form of non-cash benefits. Non-cash benefits mostly
comprise amounts to be recognized for tax purposes
for private use of company cars and other non-cash
benefits.
The value of performance-linked compensation depends
on consolidated net profit and the personal performance of the
Executive Board members themselves.
In the event of full compliance with the targets, the total
cash compensation comprises around 50 percent fixed
and 50 percent performance-linked components. The
performance-linked compensation consists of the Company bonus
(60 percent) and an individual bonus (40
percent)—assuming full compliance with targets.
Performance-linked compensation is capped at 200 percent.
Executive Board compensation also includes pension
awards, other awards in the event of termination of office, and
participation in the Group’s variable compensation
arrangements combining long-term incentives
with an element of risk.
A detailed breakdown of the Executive Board compensation for the 2010 fiscal year can be
found in the new HOCHTIEF Annual Report Online.
