Remuneration & social benefits

Remuneration and social benefits

The remuneration package of our employees comprises a salary in line with the market as well as variable remuneration components depending on the position of the employee within the Group. We also offer our staff various additional benefits such as occupational pensions and contributions towards health insurance or medical screening. These benefits reflect regional conditions and local competition. Personnel expenses in 2016 totalled EUR 3.724 bn (2015: EUR 3.829 bn), with EUR 3.185 bn (2015: EUR 3.177 bn) attributable to salaries (including social security contributions) and EUR 248 m to pensions (2015: EUR 278 m).

We use a Group-wide performance evaluation system to support fair staff appraisals. This system includes for example performance evaluations which are binding for managers. We provide our managers with training to enable them to deliver fair and transparent appraisals. Managers’ pay is based in part on the extent to which Group targets and the employees’ 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 share option schemes. In 2016, managers below Executive Board level invested in 25,371 Linde shares via the schemes (2015: 21,134 shares). For each of these shares, the participants are entitled to an additional Linde share on the expiry of the four-year qualifying period.

Over the past few years, we have paid special attention to fair remuneration for female and male employees in similar 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.

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Remuneration and social benefits1

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

1

In line with the information in the Financial Report 2016, the figures provided for the years 2015 and 2016 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

Personnel expenses

€ bn

 

3.724

 

3.829

 

3.536

 

3.423

Pension costs

€ million

 

248

 

278

 

293

 

281

Staff covered by collective wage agreements

%

 

42.3

 

41.2

 

46.5

 

45.6

Retired employees receiving pensions from Linde

 

 

28,722

 

29,116

 

30,941

 

31,006

Employees in more than 50 countries had access to occupational pensions and healthcare benefits in 2016. Around 80 percent of our employees were members of an occupational pension scheme. In the reporting year, 25,116 employees had a claim to an occupational pension from defined benefit plans (2015: 26,088). A further 16,459 former employees had a vested claim to a company pension (2015: 16,416). In total, 28,722 pensioners drew an occupational pension from the Group (2015: 29,116).