DHL 2014 Annual Report Download - page 123

Remuneration report
e remuneration report also forms part of the Group Management Report.
Remuneration structure of the Group Board of Management in financial year 
e remuneration paid to individual Board of Management members for nancial year
 was determined by the Supervisory Board, which held consultations to resolve on
the total remuneration to be paid to the individual members of the Board of Manage-
ment, including the main contractual elements. In so doing it obtained advice from an
independent remuneration consultant.
e Board of Management remuneration reects the size and global reach of the
company, its economic and nancial situation and the roles and achievements of the
individual members. It is set to ensure competitiveness with comparable German and
inter national companies, thus incentivising the Board of Management members to
deliver maximum performance and achieve results.
e remuneration paid to the Board of Management for  is in line with standard
market practice, appropriate to the tasks involved and designed to reward performance;
it comprises xed (non-performance-related) elements and variable (performance-
related) elements, which include short, medium and long-term incentives. e remu-
neration as a whole as well as its variable components have been capped.
Non-performance-related components are the annual base salary (xed annual
remu neration), fringe benets and pension commitments. e annual base salary is
paid in twelve equal monthly instalments retroactively at the end of each month. Fringe
benets mainly comprise the use of company cars, supplements for insurance premiums
and special allowances and benets for assignments outside the home country.
e variable remuneration paid to the Board of Management is almost entirely
medium and long-term based. More than half of the variable target remuneration con-
sists of a long-term incentive plan  with a four-year calculation period; the rest
is made up of an annual bonus linked to the company’s yearly prots, with   of the
annual bonus owing into a medium-term component with a three-year calculation
period (deferral). us less than a quarter of the variable remuneration component is
paid out on the basis of a one-year calculation. e amount of the annual bonus is set at
the due discretion of the Supervisory Board on the basis of the company’s performance.
e individual annual bonus amounts reect the extent to which predened targets are
achieved, missed or exceeded. e maximum amount of the annual bonus may not
exceed   of the annual base salary.
In the reporting year, the same criteria were used to calculate the amount of the an-
nual bonus as in the previous year. A key parameter for all Board of Management mem-
bers is the Group’s  aer asset charge performance metric, including the asset charge
on goodwill before goodwill impairment . For the Board of Management members
in charge of the Post - eCommerce - Parcel, Express, Global Forwarding, Freight and
Supply Chain divisions, the  of their respective division is also a key parameter.
e Group’s reported free cash ow is one of the targets applicable to all members of
the Board of Management. Furthermore, an employee-related target is agreed with all
Board of Management members based upon the annual Employee Opinion Survey, as
are additional targets.
Deutsche Post  Group —  Annual Report
117
Corporate Governance — CORPORATE GOVERNANCE REPORT — Remuneration report