The remuneration of the SAF-HOLLAND Management Board was based on the Company's size and global orientation, in addition to its economic and financial situation. Remuneration is designed to be internationally competitive, providing incentives for dedicated and successful work in a dynamic business environment.
The remuneration package consists of three components:
- A fixed annual base salary paid monthly,
- variable remuneration (short-term incentive, STI) based on the financial year, and
- long-term variable remuneration (long-term incentive LTI) based on the Company's performance and its stock price over a four-year performance period.
The variable remuneration components for the Management Board are based solely on the achievement of Group targets and SAF-HOLLAND’s share price performance. The variable remuneration of the regional presidents also takes into account the achievement of the respective region’s budget targets.
For the variable remuneration components, the Board of Directors determines targets that are based on SAF-HOLLAND's budget for the respective financial year. The amount of the variable remuneration depends on the SAF-HOLLAND Group’s achievement of certain key performance indicators.
Remuneration of the Chief Executive Officer (CEO)
The minimum and maximum remuneration of the Chief Executive Officer (CEO) that could be reached in the year 2017 based on the variable compensation components was a minimum of 0% of the base compensation for the year 2017 and a maximum of 261%.