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. Supervisory Board remuneration must be structured to ensure the required level of independence of the Supervisory Board for its monitoring duties. Supervisory Board remuneration at Deutsche Telekom AG consists of fixed remuneration components on the one hand and attendance fees on the other. The amount of remuneration paid to individual Supervisory Board members therefore depends on the duties assumed on the Supervisory Board and/or its committees, as well as the extent of meeting attendance. In this way, the structure of Supervisory Board remuneration provides a counter-weight to Board of Management remuneration, which is heavily dependent on the success of Deutsche Telekom. This approach strengthens the independence of the Supervisory Board and, in turn, the long-term development of Deutsche Telekom AG. Although Supervisory Board remuneration is not directly linked to the success of the Company’s strategy, it still contributes to its successful implementation.