Principles of the voestalpine Group’s compensation policy

Employees’ total compensation is primarily paid in the form of a fixed salary in line with market conditions, and otherwise as variable compensation.

The amount of the fixed salary is based on the activities, role, and position of the employee, as well as individual experience and expertise. Any relevant statutory provisions and agreements in collective wage agreements or works agreements are complied with. The amount of the variable compensation is dependent on the achievement of set targets. Depending on the employee’s role, both qualitative and quantitative are set (in particular EBIT and ROCE). Targets are usually set for one business year in each case.

There are limits on the maximum possible variable compensation and the weighting of targets for managing directors and executives. Compensation packages for all other employees are determined by the individual companies according to local practice and requirements in line with market conditions. Various compensation elements are possible, including non-monetary elements:

• Pension plans (e.g., in the Austrian pension fund)
• Insurance (e.g., accident insurance)
• Discounted canteens
• Coupons

The compensation package for managing directors and executives always includes variable compensation (bonus) and in some cases a pension plan and a company car.