Remuneration & social benefits

Remuneration and social benefits

The remuneration package of our employees comprises not only a fixed salary component but also variable remuneration components depending on the position of the employee within the Group. We also offer our staff various additional benefits in line with local conditions and in response to the competition. These benefits include occupational pensions and contributions towards health insurance or medical screening. Personnel expenses in 2015 totalled EUR 3.928 bn (2014: EUR 3.536 bn), of which EUR 3.378 bn (2014: EUR 3.069 bn) related to salaries (including social security contributions) and EUR 307 m (2014: EUR 293 m) to pensions. During the reporting year, 42.6 percent of our staff were employed on the basis of collective wage agreements (2014: 46.5 percent).

We ensure our employees’ remuneration is appropriate and in line with the market and we conduct internal and external comparisons of remuneration on a regular basis. Over the past few years, we have paid special attention to fair remuneration for female and male employees in comparable positions. When we have conducted analyses of remuneration and salary increases in a number of different regions, we have not identified any significant differences for comparable positions.

We use a Group-wide IT system to ensure fair staff appraisals. The system includes amongst other things performance evaluations which are binding on managers and job evaluations of all executive positions. The evaluations take account of such criteria as transparency, equal opportunities and pay in line with market conditions. Our managers are provided with training on how to use the system and how to conduct discussions with staff. Executive pay is based on the extent to which Group targets and the employee’s individual targets have been achieved. Depending on the business area, sustainability targets such as safety and diversity may also be relevant to the calculation. Senior managers also participate directly in the company’s growth in value through the Linde Long Term Incentive Plan. In 2015, managers below Executive Board level invested in 22,637 Linde shares via the scheme. For each of these shares, the plan participants are entitled to an additional Linde share on the expiry of the four-year qualifying period.

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Remuneration and social benefits

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

2012

 

 

As a result of the application of the revised accounting standards, the sites in the scope of our reporting changed in the 2013 financial year. Accordingly, the key financial, environmental and employee KPIs for 2012 were adjusted retrospectively. In addition, the KPIs for employees, occupational health and safety and environmental protection for the year 2012 were retrospectively adjusted to account for the effects of the acquisition of the US homecare company Lincare.

Personnel expenses (in € bn)

 

3.928

 

3.536

 

3.423

 

3.117

Pension costs (in € million)

 

307

 

293

 

281

 

241

Staff covered by collective wage agreements (in %)

 

42.6

 

46.5

 

45.6

 

45.1

Retired employees receiving pensions from Linde

 

29,116

 

30,941

 

31,006

 

31,118

Employees in more than 50 countries have access to occupational pensions and healthcare benefits. Around 80 percent of Linde employees are members of occupational pension schemes. Through defined benefit plans, 26,088 active employees are being paid an occupational pension and a further 16,416 former employees have acquired a vested claim to a company pension. In total, 29,116 pensioners are drawing an occupational pension from the Group. At Linde, globally binding rules apply to the modification, introduction or closure of pension plans. Any such measure must be agreed with the Global Pension Committee, which consists of the Chief Executive Officer, the Chief Financial Officer and experts in accounting, finance and human resources.