Vergütungsberichts

Vergütungsberichts, also known as a remuneration report, is a document that publicly discloses the compensation paid to the executive bodies and supervisory boards of a company. This report is a key element of corporate governance and is mandated in many jurisdictions, particularly within the European Union, under regulations designed to increase transparency and accountability.

The primary purpose of a Vergütungsberichts is to provide shareholders and other stakeholders with a clear understanding of how executive and supervisory board members are compensated. This typically includes details on fixed salaries, variable bonuses, stock options, pensions, and other benefits. The report often outlines the criteria and performance metrics used to determine variable compensation, ensuring that pay is linked to the company's financial performance and strategic goals.

In addition to detailing the compensation itself, a Vergütungsberichts usually includes a statement from the supervisory board explaining its remuneration policy. This policy describes the principles governing the structure and level of compensation for management, aiming to attract and retain qualified individuals while aligning their interests with those of the company and its shareholders. The report is usually published annually as part of the company's financial statements or annual report. Its availability allows shareholders to scrutinize executive pay and exercise their voting rights on remuneration matters.