Employees’ total compensation takes the form of fixed, market-rate salaries, some of which are supplemented by variable compensation.
The amount of the fixed salaries is based on the activities, role, and position of the given employee, as well as their individual experience and expertise. Any relevant statutory requirements and contracts under collective bargaining agreements or works agreements are complied with as applicable. In the event of supplementary, variable compensation, the amount of the given component of compensation is contingent on the achievement of stipulated targets. Depending on the given employee’s role, both qualitative and quantitative targets (in particular, EBIT and ROCE) are agreed. Targets are usually set for one business year at a time.
Group-wide requirements applicable to managing directors and officers concern the amount of the maximum possible variable compensation and the weighting of the targets. Compensation packages for all other employees are determined by each individual company in line with market conditions, taking into account both local practice and local requirements. Various compensation elements are possible in this connection, including non-monetary components:
- Pension plans (e.g., in Austria, a pension fund)
- Insurance policies (e.g., accident insurance)
- Employer-subsidized meals
The compensation packages of managing directors and officers always include variable compensation (bonus) and, in some cases, a pension plan and a company car.