The remuneration report explains the structure and amount of the remuneration paid to current and former members of the Executive Board and the Supervisory Board of Beiersdorf AG in fiscal year 2022. It was prepared in accordance with the statutory provisions of § 162 Aktiengesetz (German Stock Corporation Act, AktG) as amended by the Gesetz zur Umsetzung der zweiten Aktionärsrechterichtlinie (German Act on the Implementation of the Second Shareholders’ Rights Directive, ARUG II) and also contains additional information on Executive Board and Supervisory Board remuneration for added clarity and transparency. The auditor has examined whether the remuneration report contains the information required in accordance with § 162 (1) and (2) AktG. The auditor’s report is included in this remuneration report.
On April 14, 2022, the Annual General Meeting approved the remuneration report for fiscal year 2021, which was prepared and audited for the first time in accordance with § 162 AktG, with a majority of approximately 73% of the votes cast. The Executive Board and Supervisory Board have given very careful consideration to the comments and criticisms made to the company by investors with regard to the 2021 Remuneration Report. Wherever the Supervisory Board and Executive Board deemed it reasonable and appropriate, they have been taken into account in the preparation of this remuneration report. In particular, it was decided to adjust the presentation of remuneration “granted and owed” in accordance with § 162 AktG. In a change from the 2021 Remuneration Report, remuneration is reported as having been “granted” (“gewährt”) in the fiscal year if the (one-year or multi-year) activities on which it is based have been fully performed as of the end of that fiscal year, meaning that the remuneration has been earned, even if it is not received (i.e. paid out) until the following fiscal year. This presentation is designed to ensure clear and transparent reporting and comparability between performance and remuneration in the reporting period. Particularly in respect of the short-term variable bonus for the 2022 fiscal year, a direct comparison is enabled between target achievement and the performance of the company in the 2022 fiscal year. This method of presentation corresponds to the now dominant practice. In addition, the performance criteria and targets for the Executive Board members’ variable remuneration are explained in more detail compared with the 2021 Remuneration Report. The target achievement for the individual targets is disclosed for each Executive Board member. Moreover, the comparison of Executive Board and Supervisory Board remuneration with the earnings performance of the company and the average remuneration of the key employees now shows not only the percentage change in employees’ remuneration but also goes beyond the statutory requirements by providing absolute figures.