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).

The Sustainability Balanced Scorecard (SBSC) sets the individual sustainability targets for Fraunhofer UMSICHT’s business units. It is used as a means of assessment in the appraisal interviews with the heads of the business units. In comparison to the industry, Fraunhofer UMSICHT has only limited influence on the salary, because of existing collective agreements for the civil service. A variable performance-based remuneration is a component of the salary.