Siemens Adjusts Compensation System for Management Board
December 04 2019 - 9:32AM
Dow Jones News
By Kim Richters
Siemens AG (SIE.XE) said Wednesday that it is adjusting its
compensation system for its management board members to include new
factors such as sustainability targets.
The German engineering conglomerate said the new system will not
only consider the company's capital market performance but also
environmental goals, employee training and customer satisfaction,
placing more importance on individual board-member
responsibility.
The company said the MSCI World Industrials Index will be the
new benchmark for the stock awards, which will continue to have a
four-year vesting period.
The supervisory board's option of adjusting the annual bonus
payout by as much as 20% is discontinued, while the maximum payout
for short-term variable compensation is reduced to 200% of the
target amount from 240%, Siemens said.
In the past fiscal year ending September, the total compensation
for the eight managing board members totaled 33 million euros
($36.6 million), 4.2% more than a year ago. Chief Executive Joe
Kaeser received EUR7.1 million, his vice president Roland Busch
EUR4 million. Including bonus payments and stock awards related to
previous years, Mr. Kaeser received EUR14.2 million.
The new compensation system will presented to shareholders at
the annual meeting in February, the company said, and is effective
as of the financial year 2020.
Olaf Ridder contributed to this article.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
December 04, 2019 09:17 ET (14:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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