Compensation Policy

We are investing in our most important asset – our employees

The sustained success of our company demands not only a very high degree of motivation but, also, long-term commitment of our employees to the SGL Group.

In addition to an attractive basic compensation, our employees receive performance-related and success-oriented pay components. These reward both

• the personal commitment of the employee and
• the achievement of our corporate targets.

Furthermore, our specialist and management staff receive other medium- and long-term compensation elements to support our corporate strategy.

This compensation policy is accompanied by modern benefits that are linked to responsibility and regional and legal conditions.

Total compensation in the SGL Group is based on the following components:

• The base salary is set at a competitive level, both regionally and internationally for management staff, by regularly conducted benchmarks.
  An established international job evaluation system ensures comparability with the labor market and helps maintain equitable internal compensation.
• The annual bonus plan is an important component of our variable compensation. It motivates our employees to actively participate in achieving our annual corporate targets.
  Three criteria are taken into account in calculating the bonus amount: individual performance, the success of the employee’s business unit and the overall success of the SGL Group.
• In addition, we offer our employees a modern and specific package of benefits. This package is linked to the regional and legal conditions of the country and local market. For our management staff, we are guided by attractive international standards.
• Benefits such as pension plans, health check-ups and long-term retirement planning are not performance-related.
  A flexible company car policy enhances this package.
• With our share plans for top management (stock appreciation rights plan and matching share plan), we offer medium- and long-term compensation elements. In this, we are pursuing our aim of allowing our managers to share in the long-term success of the company, as reflected by sustained increase in shareholder value and development of the share price.

A long-term cash incentive (LTCI) plan for top management, linked to the medium-term strategic objectives of the company, combines the development of the company with the expectations of stakeholders.