Remuneration and pensions

Attractive pay is an important argument in recruitment and an equally important component in ensuring the retention of capable and dedicated staff at the company. The regulations on pay are based on standard criteria for the market and are weighted according to the success of the individual and the company, depending on the level of management responsibility.

The company’s success is reflected in employees’ pay in two ways: employees receive a share in the profits if the development of the company’s key figures is good. The performance of the company also plays an important part in company pensions: a performance-related component in contributions ensures that additional provisions are built up here for support in old age.

In addition to fixed salary components, Rheinmetall offers managers various variable performance incentives and additional benefits. By focusing on goals, this pay system provides incentives to take on challenges and assume responsibility. The performance-based salary components, which lie within a range of 0 % to 200 % of the target profit share, depending on the extent to which targets are achieved, are linked to individual goals and the transparent management variables of the company through the setting of personal targets.

In addition to executives, exempt employees are also included in the Management by Objectives program, meaning that their personal performance is also linked to the success of the company.

As a long-term incentive, Executive Board members, managers and executives receive an additional pay component. As a long-term staff retention and incentive instrument, the concept includes payment of up to 50 % in Rheinmetall shares, which are subject to a four-year lock-up period. As the recipients are to be taxed immediately on the Rheinmetall shares granted, practically the entire amount is granted in shares. The number of shares granted is based on a reference share price which corresponds to the average price on the last five trading days in February of the subsequent fiscal year.

The Rheinmetall Group supports employees in planning and implementing protection that supplements statutory pension schemes and that increases financial security in retirement. This "Rheinmetall Plus” system, which applies to sites in Germany, consists of a basic plan, a performance-related intermediate plan financed by the employer and a supplementary plan financed by the employee, allowing for various forms of deferred compensation. The pension scheme has an identical structure for staff and managers; higher incomes are reflected in increased benefits. Country-specific pension arrangements also exist for employees outside Germany.