Henkel Annual Report 2019 50

Overall, the remuneration system is structured as follows:

The Company

Shares and bonds Remuneration system overview 19

Corporate governance Non-performance-related Basic remuneration

components • Chairman of the Management Board: 1,200,000 euros p.a.
Combined management report • Other Management Board members: 750,000 euros p.a.
Other emoluments
Consolidated financial statements • Insurance, reimbursement of accommodation / relocation costs, provision of a company car, use of a car service, other in-kind
benefits; amounts vary dependent on personal needs
Further information • Caps:
• Chairman of the Management Board: 250,000 euros p.a.
• Other Management Board members: 175,000 euros p.a.
Performance-related Variable annual cash remuneration (Short Term Incentive, STI)
components • Target remuneration at 100-percent target achievement:
• Chairman of the Management Board: 3,500,000 euros
• Other Management Board members: 1,800,000 to 2,200,000 euros
• One-year performance period: Amount dependent on achievements in the fiscal year (“remuneration year”) regarding:
• Business performance (financial targets, bonus): organic sales growth (OSG), adjusted earnings per preferred share (EPS) at
constant exchange rates versus prior year (actual-to-actual comparison); each weighted 50 percent
• Individual performance: Individual multiplier ranging from 0.8 to 1.2, multiplier applied to the bonus amount
• Cap: 150 percent of the respective target amount
• 65 percent freely disposable (short-term component), 35 percent invested in Henkel preferred shares (long-term component;
Share Ownership Guideline, share deferral)
Variable long-term cash remuneration (Long Term Incentive, LTI)
• Target remuneration at 100-percent target achievement:
• Chairman of the Management Board: 1,400,000 euros
• Other Management Board members: 720,000 to 880,000 euros
• Three-year prospective performance period: The criterion is the average target achievement of the adjusted return on capital
employed (ROCE) in a three-year performance period (remuneration year and the two subsequent fiscal years); target value is set
for each year (three yearly tranches)
• Cap: 150 percent of the respective target amount
Functional factors
• General functional factors as multipliers for the STI and LTI payment amounts based on target achievement

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