The Capital Management Company has established a remuneration scheme for all its employees in accordance with Art. 37 KAGB and Annex II of Directive 2011/61/EU (AIFM Directive), which is compatible with and conducive to a sound and effective risk management system. The remuneration system also applies in particular to the Board of Management, employees whose activities have a significant influence on the risk profile of the Capital Management Company or the managed investment funds (risk bearers), employees with control functions and all employees who receive total remuneration, as a result of which they are in the same income bracket as managers and risk bearers.
The objective of the remuneration policy of the Capital Management Company is, in addition to meeting regulatory requirements, to promote sustainable and risk-conscious behaviour on the part of employees and to align it with the business model, the long-term success and the risk structure of the Capital Management Company. A further central element of the remuneration policy is the consistent alignment of the remuneration scheme with the ethical principles of the Capital Management Company.
At the same time, performance should be rewarded and motivated employees should be retained in the company for the long term. However, no incentives are explicitly provided which encourage risk-taking and are not compatible with the risk profile, investment conditions or the Articles of Association of the investment funds under management. Furthermore, no incentives are given which could prevent the Capital Management Company from acting dutifully in the best interests of the investment fund concerned. In this respect, the remuneration policy of the Capital Management Company is in line with the business strategy, objectives, values and interests of the Capital Management Company and the investment funds it manages.
The remuneration of employees is made up of a fixed salary and a variable component. In individual cases, employees may receive additional bonuses. In detail, the following applies to the individual remuneration components:
- The annual fixed salary is paid in twelve equal monthly amounts. The amount of the fixed remuneration is determined by the value of the exercised function and in accordance with market practices. The fixed component is calculated in such a way that employees are not significantly dependent on variable compensation
- The variable remuneration, which is calculated on an annual basis, depends on the development of the company and the achievement of personal targets. It may amount to a maximum of 100% of the fixed remuneration. Payment of the variable remuneration is made after the individual degree of target achievement has been determined, the annual financial statements of the Capital Management Company have been approved, and the bonus pool available for payment has been approved by the Supervisory Board. The bonus amount available for distribution is determined within the framework of the budget planning for the following financial year.
- In special individual cases, employees may receive additional bonuses over and above the variable remuneration (e.g. if special targets have been achieved); in any case, such fringe benefits and their conditions are subject to a separate agreement, with employees having no general entitlement to such a separate agreement.
Due to its size, the Capital Management Company has not made use of the facultative option of setting up a remuneration committee.
Concrete information on the annual remuneration paid to directors and other risk bearers is disclosed in the annual accounts or annual reports of the funds.