Henkel Annual Report 2019 54

22
The Company
Shares and bonds
Corporate governance
Combined management report
Consolidated financial statements
Further information
The key financials OSG and EPS are derived from the figures in Benchmark group
the consolidated financial statements for the relevant fiscal
Adhesive Technologies Beauty Care Laundry & Home Care
year as audited without qualification and approved in each case.
• Sika • P&G (Beauty) • P&G (Fabric & Home
• H.B. Fuller • Beiersdorf (Consumer) Care)
Individual target achievement by each member of the Manage- • RPM • Colgate-Palmolive • Reckitt Benckiser
• 3M (Oral, Personal and (Hygiene Home)
ment Board is reflected in the STI using an individual multi-
Home Care) • Unilever (Home Care)
plier applied to the total bonus amount assigned in respect of • L’Oréal (Group)
the overall achievement of all financial targets. This individual • KAO (Cosmetics, Skin
Care and Hair Care)
multiplier ranges from 0.8 to 1.2. STI caps may not, however,
• Unilever (Beauty &
be exceeded when applying said multiplier. If the bonus already Personal Care)
equals the capped STI amount, any multiplier greater than 1 • Coty (Group)
will have no further effect on the remuneration total.

Measurement of individual performance includes the follow-
ing factors in particular: achievement of the relevant separate
targets agreed with each individual (including sustainability
targets) and – as general criteria – the absolute and relative
performance of the business unit for which they are responsi-
ble compared to market / competition performance, plus their
individual contribution to general Henkel goals.
The following benchmark group is used to measure the indi-
vidual performance of the relevant business unit compared to
the market / competition:
In the event of major changes among the relevant competitors,
the Supervisory Board will appropriately reconsider the com-
position of the benchmark group and / or the definition of the
relevant competitor parameters.
At the end of a fiscal year, both the achievement of the finan-
cial targets and the respective individual performance based
on appropriate target agreements will be decided by the Super-
visory Board of Henkel Management AG after prior consulta-
tion with the Human Resources Subcommittee of the Share-
holders’ Committee. Here it also decides whether and to what
extent adjustments of the key financials to reflect exceptional
items are to be taken into consideration when determining
the bonus. In determining the STI, the Supervisory Board of
Henkel Management AG also gives due consideration to the
degree to which financial success and Management Board per-
formance are sustainable beyond the end of a fiscal year.

The total payable STI amount (bonus times individual multi-

plier) is capped at 150 percent of the target amount, bearing in
mind the respective functional factor.