Schaeffler Annual General Meeting approves dividend and new remuneration system for the Executive Board

Virtual general meeting met with great interest
Dividend distribution of 45 cents per preferred share
New remuneration system for the board

The virtual general meeting of Schaeffler AG met with great interest. Around 600 shareholders attended the broadcast of the Annual General Meeting. They voted for a dividend payment of 45 cents per preferred share. The payout ratio was around 43 percent, which was within the target corridor of 30 to 50 percent based on the consolidated earnings attributable to shareholders before special items.

“The proposed dividend is the result of careful balancing of interests. In our view, it is fair and appropriate to let the shareholders participate in the success of the past year. Our capital base and very solid liquidity allow us to do that, ”said Klaus Rosenfeld, CEO of Schaeffler AG.

New remuneration system for the board
In addition, the Annual General Meeting approved a new compensation system for the Management Board that the Supervisory Board had resolved retrospectively as of January 1, 2020. Schaeffler is thus implementing the changed regulatory requirements for Executive Board remuneration in accordance with the law on the implementation of the second shareholder rights guideline (ARUG II) - faster than required by law.

Management board remuneration is based on the principles of coupling performance and remuneration, value creation and free cash flow. The variable remuneration is focused on long-term and sustainable corporate value development. In addition, the new remuneration system strengthens the capital market orientation and aligns the interests of shareholders and the Board of Management even more closely. A new share purchase and holding obligation has been added, according to which the members of the Board of Management purchase preferred shares of Schaeffler AG in a predetermined amount and period and must hold them until the employment relationship ends. In order to do justice to the growing importance of sustainability as part of the corporate strategy, sustainability goals have been included in the variable remuneration. In addition, the performance criteria were redesigned and the old-age provision of the members of the Management Board was converted to a contribution-financed system.

“The new management board remuneration system is clear and understandable. In addition to their fixed remuneration, the Executive Board members receive short and long-term variable remuneration components. It was important to us that in addition to the adjustment of old-age provision, we also coupled the achievement of sustainability goals with the variable remuneration. I also see the obligation to buy and hold shares as an important step in making the Schaeffler Group even more capital market-oriented, ”said family shareholder and Chairman of the Supervisory Board Georg F. W. Schaeffler.