Compensation model
Jungheinrich‘s management pursues the principle of value-oriented management. This forms the basis for the value-oriented compensation systems, which are linked to key value-added indicators such as the return on sales and capital employed (ROS and ROCE).
Board of Management compensation
The Supervisory Board is responsible for determining the remuneration of the members of the Board of Management. Upon initiative by the Personnel Committee, it decides on the composition of the remuneration system and reviews its appropriateness regularly. The remuneration of members of the Board of Management includes a fixed and a variable component. The Board of Management‘s compensation system is characterized by its performance orientation. This is reflected in the ratio of the variable to the fixed component. The variable component can amount to more than 50 per cent if very good results are achieved. The variable component’s success parameter is the EBIT return on sales (ROS) of the Jungheinrich Group, in line with the degree to which a target return established for several years is achieved in accordance with the company’s strategic orientation, which is reviewed and can be adjusted on an annual basis. The variable component is paid retrospectively once a year, commensurate with the results achieved in the preceding fiscal year. Pensions for members of the Board of Management are calculated based on the individual’s years of service at Jungheinrich with a lead-in period until the member has a right of non-forfeiture.
Supervisory Board compensation
Remuneration of the Supervisory Board is governed by Sec. 18 of Jungheinrich AG’s articles of association. The amount and payment dates are determined by the Annual General Meeting. Besides being reimbursed for their out-of-pocket expenses, members of the Supervisory Board receive a compensation, to which the applicable sales tax is added. The Chairman of the Supervisory Board receives double this amount, with the deputy receiving one-and-a-half times this sum. The compensation of each member of the Supervisory Board totals €15,000 per annum, plus €2,000 for every 1 per cent of the dividend exceeding 4 per cent for the preceding financial year paid to preferred shareholders. Members of the Supervisory Board committees collectively receive double the aforementioned compensation. The respective committee decides on how it is divided among them.