Key Performance Indicators to criteria 8

Key Performance Indicator GRI SRS-102-35: Renumeration policies
The reporting organization shall report the following information:

a. Remuneration policies for the highest governance body and senior executives for the following types of remuneration:
i. Fixed pay and variable pay, including performance-based pay, equity-based pay, bonuses, and deferred or vested shares;
ii. Sign-on bonuses or recruitment incentive payments;
iii. Termination payments;
iv. Clawbacks;
v. Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.

b. How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental, and social topics.

Appointment bonuses (sign-on bonuses) are not paid as a rule.

Severance pay is granted in specific cases in accordance with established criteria. There is no differentiation in the criteria according to employee hierarchy/role.

Clawbacks are not applied due to the purely fixed remuneration system.

Retirement benefits: Our employees receive employer-financed pension benefits (defined benefit pension schemes) from the (Bank’s) relevant pension scheme applicable on joining. Longer-standing commitments are based on salary whereas newer commitments are contributions-based. No further differentiation between certain employee groups is made based on either defined benefit pensions or on contributions. There is a different regulation for members of the Management Board: They receive individual contracts, individual commitments which are each determined by pensionable salary components and length of service.

Within the context of the guideline on deferred compensation, members may waive portions of the fixed remuneration and may convert them into retirement benefit entitlements of an equivalent value. There is no distinction between employee groups.

The members of the Supervisory Board (the uppermost controlling body) receive an appropriate remuneration and payment for meetings. The following is from Rentenbank’s articles of association Section 12 (1) with regard to the amount: "Remuneration of the members of the Board of Supervisory Directors including remuneration for attendance at meetings shall be set in a resolution by the General Meeting; the resolution shall be approved by the Supervisory Authority. The remuneration shall account for the responsibility and scope of functions of the members of the Board of Supervisory Directors and the Bank’s financial position.  Chairmanship and deputy chairmanship in the Board of Supervisory Directors and chairmanship and membership in the committees are to be taken into account."

Key Performance Indicator GRI SRS-102-38: Annual total compensation ratio
The reporting organization shall report the following information:

a. Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

The remuneration system is disclosed every year. It was most recently disclosed in the 2020 Disclosure Report in accordance with the Remuneration Regulation for Institutions (Institutsvergütungsverordnung).

Half of our employees are paid in line with collective pay agreements (as of 31 December 2020), while the other half are employees that are salaried above the tariff wage-scale.

Details about the remuneration of the members of the Management Board and the Supervisory Board are published every year in the Annual Report. Information on the remuneration of the Management Board and the Supervisory Board may be found on pages 71 and 72 of the 2020 Annual Report.

Individual employee salaries are protected as confidential information at Rentenbank, so submission for statistical purposes is limited.