Metzler's remuneration system
Employee retention and risk avoidance are our priorities
The Metzler Group currently has around 700 employees. The group’s clearly defined business focus results in a very low-risk structure. The restrictive, risk-averse alignment of our business activities and personal liability of our management prevent the group entering into unreasonable risk positions. Sustainability and the avoidance of unreasonable risk also have top priority for our remuneration policy. Metzler’s remuneration system is an integral part of its business and risk strategies. In view of these principles, the size of the bank and our balance sheet total in the past three years Metzler is not defined a material institution within the meaning of § 1 II Instituts-Vergütungsverordnung (InstitutsVergV). Consequently, a separate risk analysis is not required and sections 5, 6, and 8 of the InstitutsVergV are not applicable for the Metzler Group.
Metzler’s remuneration system comprises a fixed base salary and variable components (bonus and other one-off payments). The present occupational pension plan does not include any discretionary pension benefits. Through strict organizational separation of market activities and risk management/controlling, the bank ensures that no parallel remuneration parameters are applied. The base salary provides our employees with reliable basic remuneration for their work. It reflects the tasks entrusted to them and aims to ensure lasting retention of employees. The system thus prevents significant dependence on variable remuneration components and thus avoids giving employees an incentive to take unreasonable risks. That is supported by the full flexibility of our remuneration policy, which provides for variable payments to be scaled back to zero in certain circumstances.
Variable remuneration is based on the attainment of individual objectives (in other words, an assessment by each line manager of the extent to which they have met the qualitative and quantitative targets set for them) and the overall business performance of both the bank and the division where the individual works. Moreover, the final decision on the level of such payments is taken at the discretion of the partners. The structure of the remuneration system and, above all, the significance of the base salary, prevent a significant dependence on variable bonus payments. The upper limit for such payments is set at 70% of total remuneration.
Payments for 2011
For business year 2011, 695 employees (497 of which are entitled to bonus premiums) were paid a total of EUR 64,351,000 as base salary and EUR 21,229,000 as bonus payments. These amounts were allocated to front office and back office employees as follows:
|Front office (284 employees)||Back office (411 employees)|
|Base salary||Bonus||Base salary||Bonus|
|EUR 29,289,000||EUR 10,527,000||EUR 35,062,000||EUR 10,702,000|