Nabaltec_E_GB2016

T R O P E R T N E M E G A N A M D E T A D I L O S N O C 30 DESCRIPTION OF THE BUSINESS ENTERPRISE 1.3 CONTROLLING Incentive scheme defines responsibilities Nabaltec AG has implemented a company-wide incentive scheme, assigning responsibilities and defining specific objectives even for the smallest units of the company. Comprehensive earnings, cost and performance forecasts facilitate analysis for achievement of the company’s objectives. Variance analyses are available online, indicating a need for action at an early stage and promoting the process of agreement on targets. Comparisons of estimates against results are conducted on a monthly basis for all cost centers and cost units. Since 1998, “Navision” ERP software has been used in all commercial departments. All cost accounting at Nabaltec, including earnings statements, have been presented based on the “macs” controlling software since 2003. Revenues, contribution margins, EBIT, ROCE, ROI, amortization terms and cash flows are the key control parameters which are used as a basis for business management decisions. 1.4 BASIS OF THE REMUNERATION SYSTEM FOR THE GOVERNING BODIES The remuneration of the Management and Supervisory Board members is explained in greater detail in the Group notes. MANAGEMENT BOARD The Management Board agreements were revised on 19 June 2016 by resolution of the Supervi- sory Board. The remuneration for the Management Board members includes fixed and variable components; the latter are based on annual business performance on a recurring basis and are capped relative to the member’s fixed annual salary. This remuneration covers all activities of the individual Management Board members for the company and its subsidiaries and holdings. Variable compensation system for the Management Board The assessment basis for variable compensation is calculated as follows: each Management Board member receives a profit share equal to 4% of the amount by which pre-tax consolidated net income in accordance with IFRS, adjusted for non-controlling interests and subtracting losses carried forward from the year before, exceeds 8.33 times the member’s fixed salary (up to and including 24 August 2016), or EUR 4.2 million (as of 25 August 2016). Variable compensation is capped at 100% of the fixed annual salary. As a part of the fixed compensation component, the company provides Management Board members with ancillary benefits in addition to the fixed salary, such as use of a company car, accident insurance, health and long-term care insurance subsidies which conform to the statu- tory rules for employees and continued payment of wages for a limited time in case of illness and death. Management Board members also receive a pension upon retirement amounting to 67% of their last fixed gross salary, and surviving spouses are entitled to up to 75% of the pension as a widow’s pension. Management Board members are covered by a D&O insurance policy with an insured sum of EUR 17.5 million, with a deductible amounting to 10% of the claim, as required by law, up to one and half times the amount of their fixed annual compensation. |||| Nabaltec AG | Annual Report 2016

Seitenübersicht