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Non-performance-based remuneration components

Members of the Board of Management receive the following non-performance-based (fixed) remuneration components:

Overview of possible fixed components of Board of Management remuneration in the remuneration system

 

 

 

Remuneration components

Features

Objectives and bearing on strategy

Basic remuneration

  • Contractually agreed fixed remuneration
  • Paid out at the end of each month
  • Reflects the person’s position within the Board of Management, personal experience, and market conditions
  • Guaranteed component of remuneration of the Board of Management

Remuneration in kind

  • Provision of mobility solutions (e.g., company car)
  • Annual health checkup
  • Insurance benefits
  • Consultation on security-related issues and measures for structural and technical security
  • Assumption of costs which are incurred in the Company’s interests

Other fringe benefits

  • Reimbursement of job-related relocation costs
  • Temporary allowance for the maintenance of two households
  • Compensatory payments for the loss of variable remuneration components from previous employer in the event of a transfer to Deutsche Telekom AG
  • Compensation for financial losses that arise as part of Board activities or are incurred due to the transfer to Deutsche Telekom AG

Basic remuneration

Basic remuneration is always paid out in twelve monthly installments. In combination with the remuneration in kind, it represents the minimum amount of remuneration that a member of the Board of Management will receive in a year. When setting the amount, the Supervisory Board differentiates between the Chair and the ordinary members of the Board of Management. In addition, the level of basic remuneration varies according to the number of reappointments and the level of personal experience of each member of the Board of Management. The Supervisory Board always carries out a systematic assessment of the remuneration of the member of the Board of Management in question during the reappointment process and adapts their remuneration to reflect their personal experience and performance.

Remuneration in kind

In line with market and corporate standards, the Company grants all members of the Board of Management additional benefits, some of which are viewed as non-cash benefits and taxed accordingly. These include the provision of a company car, the possible service of a personal driver, and the provision of accident and personal liability insurance.

Other fringe benefits

When Rodrigo Diehl was appointed to the Board of Management, his remuneration package covered job-related relocation costs plus reimbursement of the costs of regular trips home and temporary accommodation at his new place of work for a limited period.

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