Outlook: performance-based remuneration (short-term incentive) in the short financial year
The Annual General Meeting of 23 May 2012 resolved to change the financial year of METRO AG to run from 1 October to 30 September. For this reason, a 9-month short financial year (1 January 2013 to 30 September 2013) will be created in 2013. The performance-based remuneration system, however, was designed on the basis of a 12-month financial year that represents a full annual cycle in the retail business, including the Christmas season. In light of this, the Management Board decided to offer a transitional arrangement to executives and employees of METRO AG. In this arrangement, the calculation of performance-based remuneration during the short financial year will be based on a full annual cycle (1 January 2013 to 31 December 2013). The payments calculated on this basis will be proportionally reduced to the 9-month short financial year. The Supervisory Board followed the recommendation of its Personnel Committee and also concluded a transitional agreement with the members of the Management Board. The Supervisory Board believes this arrangement will ensure an appropriate transfer of the current bonus system to the new financial year. In addition, it reinforces the basic principle of a uniform remuneration system for members of the Management Board and employees of METRO AG.