Philosophy of compensation

The compensation of the BoD members therefore consists of a fixed fee, which is based partly (one third) on blocked shares in the Company in order to ensure long-term alignment with the shareholders’ interests. A substantial part of the CEO’s variable compensation (financial and personal targets) is coupled with achieving the Company’s sustainability targets, too. Half of the variable compensation under the STIP is paid out in Restricted Share Units (RSUs) with a 3-year vesting period. The Board of Directors deliberately implemented a simple compensation system for the development phase, which is tailored to a small Executive Management (one member from the IPO until the end of 2021 and two members since the beginning of 2022). Despite the omission of an LTIP for the development phase, the compensation is linked with the share of RSUs with long-term targets. The Board of Directors has now decided to implement an LTIP from the financial year 2024 onwards, with the target incentive being 30% of the annual base salary. The LTIP will be granted in the form of contingent rights to shares of Ina Invest Holding Ltd (performance share units, PSUs) linked to the achievement of two performance targets (relative total shareholder return, earnings per share) and a further ESG target to be determined over a three-year performance period. At the same time as the LTIP is launched, the target incentive of the STIP will be reduced from 40% to 20% of the annual base salary.