HOCHTIEF - Investor Relations > Corporate Governance

Compensation report
Executive Board compensation for the 2007 fiscal year

The full Supervisory Board regularly reviews the structure of the Executive Board compensation system. Specifics regarding the amount of Executive Board compensation are decided by the Human Resources Committee.

Executive Board member compensation comprises a fixed annual salary supplemented by variable, performancelinked 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. Noncash benefits mostly comprise amounts to be recognized for tax purposes for private use of company cars and accident insurance.

The value of performance-linked compensation depends on the consolidated profit before taxes 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.

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.

Effective January 1, 2008, the fixed compensation of the Chairman of the Executive Board was increased to EUR 785,000 p.a., and that of the Executive Board members was raised to EUR 523,000 p.a.

A detailed breakdown of the Executive Board compensation for the 2007 fiscal year can be found in the new HOCHTIEF Annual Report Online.