Siemens Adjusts Compensation System for Management Board

   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 [e-mail]

(END) Dow Jones Newswires

December 04, 2019 09:17 ET (14:17 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.