Key elements of the remuneration policy in ECC AG
As per EMIR Art. 26 i.c.w. RTS 153 Art 10, ECC AG has to publish the key elements of its remuneration policy to the public free of charge.
The following provides an overview of the design of the ECC AG remuneration scheme.
The total remuneration of ECC staff, managers and board members generally comprises the fixed salary, variable salary (bonus) and fringe benefits. Moreover, a long-term incentive is granted to the board members.
Board Remuneration Scheme
The total remuneration of the Board consists of fixed and variable components, social benefits and fringe benefits, such as company pension plans and the provision of a company car. All remuneration elements are determined by the ECC AG Supervisory Board and are stipulated in the executive employment contracts.
Staff Remuneration Scheme
The remuneration of staff is determined by the ECC AG Remuneration Committee consisting of the board members of ECC AG.
The fixed base salary, which is determined in the employment contracts, forms the main part of the overall remuneration package and is established on the basis of an evaluation of internal comparisons and external market rates for the position. Employees also have the opportunity of an annual target bonus as the second part of their annual target salary. The following characteristics of variable remuneration are stipulated in the Remuneration Policy:
- There are uniform target levels of variable cash target remuneration specified in percent of the base salary for all employees of the same employee group.
- The actual level of the variable remuneration for all employees exclusively depends on the financial success of EEX Group with the relevant KPI defined as the growth in the EEX Group net income for the year compared to the previous year (with the exception of EMIR control functions). The same target achievement scale which is applicable to the board members also applies to staff.
- The minimum amount of the part of the variable remuneration relating to financial targets is zero (for 0 % target achievement), while the maximum amount is double the respective target amount (for 200% target achievement). Therefore, a relative threshold of the respective fixed salary is determined for the ECC AG employees in non-control functions.
- In certain legacy cases, variable remuneration is paid also on the basis of individual non-financial targets. The maximum target achievement rate is 100% in this case.
- Bonuses are generally paid in the financial year following the assessment year and after the annual financial statements have been adopted by the Supervisory Board.
- In order to avoid risk incentives, the Remuneration Policy stipulates that “Control Function” employees, who are covered by the European Markets Infrastructure Regulation (EMIR, Technical Standards 153/2013 Article 8 in conjunction with FFFS 2016, 21 Chapter), are not subject to the variable pay scheme. They exclusively receive a fixed base salary which is established in the same manner as the annual target salary of the other employees but is paid out in twelve annual fixed instalments. This concerns the employees in the Risk Management, Compliance and Internal Audit departments, provided they predominantly work for the control functions referred to.
The fringe benefits for the ECC AG employees include grants to the corporate pension scheme, capital forming benefits, an allowance for lunch and a further allowance which can be used for fitness studio memberships or a job ticket according to individual preferences. In addition, a childcare allowance is granted if the necessary preconditions are fulfilled. The ECC AG employees can also take part in the employee share plan of Deutsche Börse AG (Group Share Plan). Finally, Directors and Executive Experts are entitled to a company car or a mobility allowance.