8. Incentive Systems

The company discloses how target agreements and remuneration schemes for executives and employees are also geared towards the achievement of sustainability goals and how they are aligned with long-term value creation. It discloses the extent to which the achievement of these goals forms part of the evaluation of the top managerial level (board/managing directors) conducted by the monitoring body (supervisory board/advisory board).

All employees and the Management Board at Rentenbank are paid using fixed remuneration. The remuneration system does not contain any incentives to undertake any transactions or to take any risks outside Rentenbank’s existing statutory framework. Due to the fact that remunerations are fixed, there are no sustainability objectives in the remuneration system. Instead, the priority is the fulfilment of the promotional mandate.

Rentenbank's risk-averse business model, its public law status, its statutory promotional mandate and its competitive neutrality are also reflected in the Bank’s remuneration system.

The Members of the Management Board are remunerated in accordance with Rentenbank’s remuneration system and in line with their responsibilities. The following is an excerpt of Section 3 (6) and is enshrined in Rentenbank’s articles of association with regard to the amount of the Management Board’s remuneration: “The total remuneration of the individual members of the Board of Managing Directors shall be in line with their functions and the Bank’s financial position. The remuneration amounts shall be set by the Board of Supervisory Directors upon the proposal of the Remuneration Committee.”