Objectives of Supervisory Board compensation and relevance to the Company strategy

The key duties of the Supervisory Board include monitoring the Board of Management’s activities to manage the business. Supervisor Board compensation must be structured to ensure the independence of the Supervisory Board required for its monitoring duties. Supervisory Board compensation at Deutsche Telekom AG consists exclusively of fixed remuneration components and attendance fees. The amount of remuneration paid to individual Supervisory Board members depends exclusively on the duties assumed on the Supervisory Board and/or its committees, as well as the scope of participation in its meetings. As such, the structure of Supervisory Board compensation at Deutsche Telekom AG represents a counterbalance to the primarily performance based Board of Management compensation at Deutsche Telekom AG. This approach strengthens the independence of the Supervisory Board and thus the long-term development of Deutsche Telekom AG. Although Supervisory Board compensation is not directly linked with the success of the Company’s strategy, it still contributes to the successful implementation of the Company’s strategy.