Compensation

Compensation: transparency and long-term orientation

We want to regain the trust of society through sustainable and responsible action. That is also reflected in our compensation systems.

50%

of the criteria for our promotion decisions are comprised of adherence to our values and beliefs

What do we want to achieve?

Since 2012 our compensation approach has included a strong behavioral focus at all levels of the organization. It rewards a long-term and sustainable focus of our business activity, customer orientation and team work. We want to ensure that employees think in a farsighted manner and consider all the possible effects of their actions. Thinking and acting with a view to long term success are rewarded.

How are we implementing that?

We aim for transparency and a long-term view, and have presented a separate remuneration report annually since 2010. Our remuneration practices are in line with and partially go beyond the principles of German Federal Financial Supervisory Authority (BaFin) and the EU.

In revising the compensation system, the proportion of variable compensation has been reduced, bonus payments are now geared to the sustainability of success and are made over several years in the form of deferred compensation, which is only disbursed after 5 years to some extent. The scheme also foresees claw backs.

An independent, external compensation review panel made up of international economic experts, which we set up in 2012, reviewed the restructuring of our compensation approach. The Compensation Control Committee has been newly established at the Supervisory Board level in 2013. It will ensure a closer link to and focus on Group compensation matters by the Supervisory Board.

What have we achieved?

We have introduced a sustainable, responsible compensation system and reinforced our internal control mechanisms. Since 2009, bonus amounts have fallen by a total of one-third. Prior to the crisis, bonuses equivalent to 22% of revenues were paid out; that share has been reduced to 10% in 2013. The proportion of variable compensation dropped to the lowest level in many years. The compliance with our values and beliefs had a 50% impact on our variable compensation and promotion decisions in 2014.

Compensation

Infographic: Controlled risk

Thinking with a view to the long term is rewarded: our compensation practices have a strong behavior-related focus.


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