Compensation report

The “Compensation report” details the compensation system underlying Board of Management compensation as well as the specific remuneration received by the individual members of the Board of Management. It takes into consideration the requirements of the German Commercial Code taking account of the provisions of German Accounting Standard No. 17 (GAS 17), the recommendations of the German Corporate Governance Code (GCGC), and the International Financial Reporting Standards (IFRS).

Changes in the composition of the Board of Management and contract extensions

Claudia Nemat has been responsible for the new Board department Technology and Innovation since January 1, 2017. Srini Gopalan succeeded her as member of the Board of Management responsible for Europe on the same date. On May 30, 2017, the Supervisory Board resolved to extend Dr. Christian P. Illek’s position as the Board member responsible for Human Resources by five years effective April 1, 2018. At its meeting on July 18, 2017, the Supervisory Board resolved to accept Niek Jan van Damme’s resignation as the Board of Management member responsible for Germany with effect from midnight on December 31, 2017, and to replace him in that position with Dr. Dirk Wössner for a period of three years beginning January 1, 2018. Also as of December 31, 2017, Reinhard Clemens resigned from his position as Board member responsible for T-Systems. The Supervisory Board accepted his resignation at its meeting on September 13, 2017. At the same meeting, Adel Al-Saleh was appointed Board member responsible for T-Systems for a period of three years beginning January 1, 2018.

Compensation of the Board of Management

Basis of Board of Management compensation

On February 24, 2010, the Supervisory Board resolved on a new system for the compensation of the Board of Management members, taking into account the provisions specified in the German Act on the Appropriateness of Management Board Remuneration (Gesetz zur Angemessenheit der Vorstandsvergütung – VorstAG) that has been in effect since August 5, 2009. The shareholders’ meeting of Deutsche Telekom AG on May 3, 2010 approved this system. The compensation of Board of Management members comprises various components. Under the terms of their service contracts, members of the Board of Management are entitled to an annual fixed remuneration and annual variable performance-based remuneration (Variable I), a long-term variable remuneration component (Variable II), as well as fringe benefits and deferred benefits based on a company pension entitlement. The Supervisory Board defines the structure of the compensation system for the Board of Management and reviews this structure and the appropriateness of compensation at regular intervals.

The fixed annual remuneration is determined for all Board of Management members based on market conditions in accordance with the requirements of stock corporation law. It is ensured that Board of Management compensation is oriented toward the sustained development of the Company and that there is a multi-year measurement base for the variable components.

At its discretion and after due consideration, the Supervisory Board may also reward extraordinary performance by individual or all Board of Management members in the form of a special bonus.

In accordance with market-oriented and corporate standards, the Company grants all members of the Board of Management additional benefits under the terms of their service contracts, some of which are viewed as non-cash benefits and taxed accordingly. This mainly includes being furnished with a company car and accident and liability insurance, and reimbursements in connection with maintaining a second household.

Sideline employment generally requires prior approval. Generally, no additional compensation is paid for being a member of the management or supervisory board of other Group entities.

In the event of temporary incapacity for work caused by illness, accident, or any other reason for which the respective Board of Management member is not responsible, the fixed basic remuneration continues to be paid; in the event of an uninterrupted period of absence due to illness of more than one month, claims to variable remuneration are reduced pro rata in line with the uninterrupted period of absence. The continued payment of remuneration ends at the latest after an uninterrupted period of absence of six months, or for a maximum of three months following the end of the month in which the Board of Management member’s permanent incapacity for work is established.

Variable performance-based remuneration

The variable remuneration of the members of the Board of Management is divided into Variables I and II. Variable I contains both short-term and long-term components consisting of the realization of budget figures for specific performance indicators, the implementation of the strategy and adherence to the Group’s Guiding Principles. Variable II is oriented solely toward the long term. This ensures that the variable remuneration is oriented toward the sustained development of the Company and that there is a predominantly long-term incentive effect. The variable compensation elements include clear upper limits, while the amount of compensation is capped overall.

Variable I. The annual variable remuneration of Board of Management members is based on the achievement of targets set by the Supervisory Board of Deutsche Telekom AG for each member of the Board of Management at the beginning of the financial year. The set of targets is composed of corporate targets (50 percent) related to unadjusted revenue, unadjusted EBITDA and free cash flow, as well as personal targets for the individual members of the Board of Management. The personal targets consist of targets oriented toward the sustained success of the Company concerning the implementation of the strategy (30 percent) and value adherence (adherence to Guiding Principles), which accounts for 20 percent. The agreement on targets and the level of target achievement for the respective financial year are determined by the plenary session of the Supervisory Board. Levels of target achievement exceeding 100 percent are rewarded on a straight-line basis, capped at 150 percent of the award amount. Any higher levels of target achievement will not be taken into consideration. To ensure the long-term incentive effect and orientation toward the sustained development of the Company, a third of the variable remuneration set by the plenary session of the Supervisory Board must be invested in shares of Deutsche Telekom AG; these shares must be held by the respective Board member for a period of at least four years.

Variable II. The exclusively long-term-oriented Variable II is measured based on the fulfillment of four equally weighted performance parameters (return on capital employed (ROCE), adjusted earnings per share, customer satisfaction, and employee satisfaction). Each parameter determines a quarter of the award amount. Levels of target achievement exceeding 100 percent are rewarded on a straight-line basis, capped at 150 percent of the award amount. The assessment period is four years, with the assessment being based on average target achievement across the four years planned at the time the tranche was determined. The award amount is decoupled from other remuneration components and is set for each member of the Board of Management individually.

In the 2017 financial year, the following absolute nominal amounts were pledged to the Board of Management members in the event of 100 percent target achievement.

  2017 tranche 2016 tranche
Reinhard Clemens 650,000 650,000
Niek Jan van Damme 644,000 644,000
Thomas Dannenfeldt 670,000 670,000
Srini Gopalan
(since January 1, 2017)
550,000
Timotheus Höttges 1,342,000 1,342,000
Dr. Christian P. Illek 550,000 550,000
Dr. Thomas Kremer 550,000 550,000
Claudia Nemat 675,000 675,000

Information on the Share Matching Plan. In the 2017 financial year, the Board of Management members, as described above, were contractually obliged to invest a third of Variable I in shares of Deutsche Telekom AG. Deutsche Telekom AG will grant one additional share for every share acquired as part of this Board of Management member’s aforementioned personal investment (Share Matching Plan) on expiration of the four-year lock-up period, provided they are still a member of the Board of Management.

GAS 17 and IFRS 2 require disclosure not only of the total expense related to share-based payment from matching shares in the 2017 financial year and the fair value of the matched shares at their grant date, but also of the number of entitlements to matching shares and their development in the current financial year.

The fair value of the matching shares at grant date shown in the following table does not represent a component of remuneration for the Board of Management members in 2017. It is an imputed value of the entitlements to matching shares determined on the basis of relevant accounting policies. Here, the fair value equates to the share price at grant date less an expected dividend markdown. The following table is based on expected target achievement for the 2017 financial year and thus on the estimated amount of the personal investment to be made by the respective Board of Management member to establish his or her entitlements to matching shares. The final number of entitlements to matching shares identified for the 2017 financial year may be higher or lower than the amounts estimated here.

The total share-based payment expense for entitlements to matching shares from 2012 to 2017 to be recognized for the financial years 2016 and 2017 pursuant to IFRS 2 is included in the two last columns of the table.

 
  Number of entitle-
ments granted to
matching shares
since 2010
at the beginning of
the financial year
Number of new
entitlements to
matching shares
granted in 2017
Number of
shares transferred
in 2017 as
part of the Share
Matching Plan
Fair value of the
entitlements to
matching shares
at grant date
 €
Cumulative
total share-based
payment expense
in 2017 for
matching shares
for the years 2013
through 2017
 €
Cumulative
total share-based
payment expense
in 2016 for
matching shares
for the years 2012
through 2016
 €
Reinhard Clemens 159,248 13,484 24,934 184,994 50,429 184,443
Niek Jan van Damme 150,748 13,359 26,279 183,286 241,645 188,132
Thomas Dannenfeldt 44,138 13,898 0 190,686 153,021 120,267
Srini Gopalan
(since January 1, 2017)
0 11,409 0 156,533 26,231
Timotheus Höttges 239,544 27,838 25,974 381,941 379,393 353,485
Dr. Christian P. Illek 25,181 11,409 0 156,533 99,980 60,164
Dr. Thomas Kremer 72,183 11,409 13,057 156,533 163,949 143,105
Claudia Nemat 105,021 14,002 28,251 192,109 193,826 193,228

By December 31, 2017, Deutsche Telekom had acquired 565,596 shares for the purpose of awarding matching shares to Board of Management members as part of the Share Matching Plan. In 2017, matching shares were again transferred to individual members of the Board of Management. A total of 118,495 shares were transferred to Board of Management members in 2017 (2016: 88,792).

Arrangements in the event of termination of a position on the Board of Management. Service contracts for members of the Board of Management concluded since the 2009 financial year include a severance cap in case of premature termination without good cause allowing a compensation payment that, in line with the recommendations of the German Corporate Governance Code, is limited to a maximum of two years’ remuneration (severance cap) and may not exceed the remuneration due for the remaining term of the service contract.

The service contracts for members of the Board of Management at Deutsche Telekom AG do not include any benefits in the event of the termination of a position on the Board of Management as a result of a change of control.

Board of Management member service contracts generally stipulate a post-contractual prohibition of competition. Pursuant to these provisions, members of the Board of Management are prohibited from rendering services to or on behalf of a competitor for the duration of one year following their departure. As compensation for this restricted period, they receive either a payment of 50 percent of the last fixed annual remuneration and 50 percent of the most recent Variable I on the basis of 100 percent target achievement, or 100 percent of the last fixed annual remuneration.

Company pension plan

Company pension plan (existing entitlement). The members of the Board of Management are entitled to a company pension. Benefits from the company pension plan are in direct relation to the beneficiary’s annual salary. The Board of Management members receive company pension benefits based on a fixed percentage of their last fixed annual salary for each year of service rendered prior to their date of retirement. The pension payments may be in the form of a life-long retirement pension upon reaching the age of 62 or in the form of an early retirement pension upon reaching the age of 60. Opting for the early retirement pension scheme is connected with actuarial deductions, however. The company pension is calculated by multiplying a basic percentage rate of 5 percent by the number of years of service as a member of the Board of Management. After ten years of service, the maximum pension level of 50 percent of the last fixed annual remuneration will be attained.

The pension payments to be made increase dynamically, at a rate of 1 percent. In addition, the pension agreements include arrangements for pensions for surviving dependents in the form of entitlements for widows and orphans. In specifically provided exceptional cases, entitlement to a widow’s pension is excluded. The standard criteria for eligibility in the pension arrangements are in line with market conditions. In the event of a permanent incapacity for work (invalidity), the respective period of service through the scheduled end of the current period of appointment serves as the basis for the period of service eligible for calculating the pension.

Company pension plan (new entitlement). A plan with a contribution-based promise in the form of a one-time capital payment upon retirement is set up for all Board of Management members with a new entitlement to a company pension. A contribution is paid into the Board member’s pension account for each year of service at an interest rate corresponding to market levels. Annual additions to the pension account have no effect on cash or cash equivalents. The cash outflow is only effective upon the Board member’s retirement. As a rule, the date of retirement is the beneficiary’s 62nd birthday. For pension agreements signed before December 31, 2011, Board of Management members can also opt to draw early retirement benefits from their 60th birthday, subject to corresponding actuarial deductions. The amount to be provided annually is individualized and decoupled from other remuneration components. The exact definition of the contribution is based on a comparison with peer companies that are suitable for benchmarking and also offer plans with contribution-based promises.

In addition, the pension agreements include arrangements for pensions for surviving dependents in the form of entitlements for widows and orphans. In the event of a permanent incapacity for work (invalidity), the beneficiary is also entitled to the pension fund.

Service cost and defined benefit obligations for each member of the Board of Management are shown in the following table:

  Service cost
2017
Defined benefit obligation (DBO)
Dec. 31, 2017
Service cost
2016
Defined benefit
obligation (DBO)
Dec. 31, 2016
Reinhard Clemens 797,142 7,803,566 737,710 7,132,977
Niek Jan van Damme 302,706 3,225,063 303,289 2,874,190
Thomas Dannenfeldt 281,578 1,200,998 276,804 903,460
Srini Gopalan (since January 1, 2017) 305,625 306,749
Timotheus Höttges 1,129,225 12,183,195 1,030,510 11,203,561
Dr. Christian P. Illek 272,566 778,582 269,168 496,574
Dr. Thomas Kremer 247,956 1,525,513 250,534 1,253,693
Claudia Nemat 291,092 2,077,262 213,170 1,756,131

An annual contribution of EUR 290,000 was allocated to Niek Jan van Damme in accordance with the provisions of the new company pension plan. The contributions for Thomas Dannenfeldt, Srini Gopalan, Dr. Christian P. Illek, Dr. Thomas Kremer, and Claudia Nemat amount to EUR 250,000 each for each year of service rendered.

The pension expense resulting from the company pension plan is shown as service cost.

Board of Management compensation for the 2017 financial year. In reliance on legal requirements and other guidelines, a total of EUR 21.3 million (2016: EUR 16.7 million) is reported in the following table as total compensation for the 2017 financial year for the members of the Board of Management. The Board of Management compensation comprises the fixed annual remuneration as well as other benefits, non-cash benefits and remuneration in kind, short-term variable remuneration (Variable I), fully earned tranches of long-term variable remuneration (Variable II), and the fair value of the matching shares. This was calculated on the basis of the estimated amount of Variable I at the grant date and the resulting number of entitlements to matching shares.

The fixed annual remuneration and other remuneration are totally unrelated to performance.

Total compensation. The compensation of the Board of Management is shown in detail in the following table:

    Non-performance-based
compensation
Performance-based compensation Total compensation
    Fixed annual
remuneration
Other
remuneration
Short-term
variable
remuneration
Long-term variable
performance-based
remuneration
(Variable II)
Long-term variable
performance-based
remuneration
(fair value of
matching shares)
 
Reinhard Clemens 2017 840,000 20,387 709,800 676,000 184,994 2,431,181
  2016 840,000 25,221 733,850 468,000 185,899 2,252,970
Niek Jan van Damme 2017 850,000 27,040 821,744 665,687 183,286 2,547,757
  2016 850,000 28,913 781,172 396,000 184,183 2,240,268
Thomas Dannenfeldt 2017 860,000 24,631 835,490 572,000 190,686 2,482,807
  2016 860,000 26,711 858,270 191,619 1,936,600
Srini Gopalan
(since January 1, 2017)
2017 700,000 1,139,610 a 654,500 156,533 2,650,643
2016
Timotheus Höttges 2017 1,450,000 29,061 1,749,968 1,135,680 381,941 4,746,650
  2016 1,450,000 156,742 1,760,704 547,560 383,809 4,298,815
Dr. Christian P. Illek 2017 700,000 35,741 685,850 156,533 1,578,124
  2016 700,000 37,585 674,850 157,299 1,569,734
Dr. Thomas Kremer 2017 700,000 63,620 654,500 572,000 156,533 2,146,653
  2016 700,000 65,910 666,600 396,000 157,299 1,985,809
Claudia Nemat 2017 900,000 78,567 804,600 702,000 192,109 2,677,276
  2016 900,000 75,616 807,975 486,000 193,049 2,462,640
  2017 7,000,000 1,418,657 6,916,452 4,323,367 1,602,615 21,261,091
  2016 6,300,000 416,698 6,283,421 2,293,560 1,453,157 16,746,836
 
a This amount includes a one-time sign-on bonus of EUR 500,000 and a payment of EUR 620,000 to compensate for the loss of share-based compensation he would have been entitled to at the previous employer. Srini Gopalan was obligated to invest the net amount paid out from the compensation payment in shares of Deutsche Telekom AG. Upon expiry of lock-up period, he can freely dispose of these shares.

The amounts shown in the “Long-term variable performance-based remuneration (Variable II)” column had been pledged to the eligible Board of Management members in the 2014 financial year.

Niek Jan van Damme resigned from his position as member of the Board of Management effective midnight on December 31, 2017. The termination agreement between Niek Jan van Damme and the Company contains the components described below. The Company will pay Niek Jan van Damme a final settlement of EUR 2.3 million for early termination of his service contract. For his participation in Deutsche Telekom AG’s Share Matching Plan, Niek Jan van Damme was awarded a total of 51,300 matching shares in January 2018, but has no other entitlements to matching shares. Niek Jan van Damme will participate on a pro rata basis in the tranches of long-term variable remuneration (Variable II) granted to him. Potential payments of long-term variable remuneration will not take place until after expiry of the term of the plan and will be calculated on the basis of the final level of target achievement as determined by the Supervisory Board. Niek Jan van Damme has vested rights to a Board of Management pension; this entitlement remains in place for the amount in the pension account as of December 31, 2017 until such time as he retires.

Reinhard Clemens also resigned from the Board of Management effective midnight, December 31, 2017. The termination agreement between Reinhard Clemens and the Company contains the components described below. Reinhard Clemens will receive a final settlement of EUR 2.0 million for early termination of his service contract. For his participation in Deutsche Telekom AG’s Share Matching Plan, Reinhard Clemens was awarded 36,312 matching shares in January 2018, but has no other entitlements to the transfer of matching shares. In accordance with his completed period of service, Reinhard Clemens will participate on a pro rata basis in the tranches of long-term variable remuneration (Variable II) granted to him. Potential payments of long-term variable remuneration will not take place until after expiry of the term of the plan for each tranche and will be calculated on the basis of the final level of target achievement as determined by the Supervisory Board. Reinhard Clemens has vested rights to a Board of Management pension; this entitlement will remain in place for the amount earned as of December 31, 2017 until such time as he retires.

As of December 31, 2017, sufficient provisions were recognized to cover the existing obligations from both termination agreements. No member of the Board of Management received benefits or corresponding commitments from a third party for his or her activity as a Board of Management member during the past financial year.

Former members of the Board of Management. A total of EUR 11.3 million (2016: EUR 7.2 million) was included for payments to and entitlements for former members of the Board of Management and those who left in the reporting year as well as any surviving dependents.

Provisions (measured in accordance with IAS 19) totaling EUR 195.4 million (December 31, 2016: EUR 201.6 million) were recognized for current pensions and vested rights to pensions for this group of persons and their surviving dependents.

Other. The Company has not granted any advances or loans to current or former Board of Management members, nor were any other financial obligations to the benefit of this group of people entered into.

Table view in accordance with the requirements of the German Corporate Governance Code

The following tables are based on model tables 1 and 2 recommended by the German Corporate Governance Code, which present the total compensation granted for the reporting year and the remuneration components allocated.

Benefits granted for the reporting year

Compensation of the Board of Management
  Timotheus Höttges Reinhard Clemens Niek Jan van Damme Thomas Dannenfeldt
  Function: Chairman of the Board of Management (CEO)
since Jan. 1, 2014
Function: T-Systems
until Dec. 31, 2017
Function: Germany
until Dec. 31, 2017
Function: Finance (CFO)
since Jan. 1, 2014
  2016 2017 2017 (min.) 2017 (max.) 2016 2017 2017 (min.) 2017 (max.) 2016 2017 2017 (min.) 2017 (max.) 2016 2017 2017 (min.) 2017 (max.)
Fixed remuneration 1,450,000 1,450,000 1,450,000 1,450,000 840,000 840,000 840,000 840,000 850,000 850,000 850,000 850,000 860,000 860,000 860,000 860,000
Fringe benefits 156,742 29,061 29,061 29,061 25,221 20,387 20,387 20,387 28,913 27,040 27,040 27,040 26,711 24,631 24,631 24,631
Total fixed annual remuneration 1,606,742 1,479,061 1,479,061 1,479,061 865,221 860,387 860,387 860,387 878,913 877,040 877,040 877,040 886,711 884,631 884,631 884,631
One-year variable remuneration 1,342,000 1,342,000 0 2,013,000 650,000 650,000 0 975,000 644,000 644,000 0 966,000 670,000 670,000 0 1,005,000
Multi-year variable remuneration 1,725,809 1,723,941 0 4,026,000 835,899 834,994 0 1,950,000 828,183 827,286 0 1,932,000 861,619 860,686 0 2,010,000
Of which: 2016 Variable II (4-year term) 1,342,000       650,000       644,000       670,000      
Of which: 2017 Variable II (4-year term)   1,342,000 0 2,013,000   650,000 0 975,000   644,000 0 966,000   670,000 0 1,005,000
Of which: 2016 Share Matching Plan (4-year term) 383,809       185,899       184,183       191,619      
Of which: 2017 Share Matching Plan (4-year term)   381,941 0 2,013,000   184,994 0 975,000   183,286 0 966,000   190,686 0 1,005,000
Total 4,674,551 4,545,002 1,479,061 7,518,061 2,351,120 2,345,381 860,387 3,785,387 2,351,096 2,348,326 877,040 3,775,040 2,418,330 2,415,317 884,631 3,899,631
Service cost 1,030,510 1,129,225 1,129,225 1,129,225 737,710 797,142 797,142 797,142 303,289 302,706 302,706 302,706 276,804 281,578 281,578 281,578
Total compensation 5,705,061 5,674,227 2,608,286 8,647,286 3,088,830 3,142,523 1,657,529 4,582,529 2,654,385 2,651,032 1,179,746 4,077,746 2,695,134 2,696,895 1,166,209 4,181,209
 
  Srini Gopalan Dr. Christian P. Illek Dr. Thomas Kremer Claudia Nemat
  Function: Europe
since Jan. 1, 2017
Function: Human Resources
since Apr. 1, 2015
Function: Data Privacy, Legal Affairs and Compliance
since June 1, 2012
Function: Technology and Innovation
since Oct. 1, 2011
  2016 2017 2017 (min.) 2017 (max.) 2016 2017 2017 (min.) 2017 (max.) 2016 2017 2017 (min.) 2017 (max.) 2016 2017 2017 (min.) 2017 (max.)
Fixed remuneration   700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 900,000 900,000 900,000 900,000
Fringe benefits   1,139,610 a 1,139,610 a 1,139,610 a 37,585 35,741 35,741 35,741 65,910 63,620 63,620 63,620 75,616 78,567 78,567 78,567
Total fixed annual remuneration 1,839,610 1,839,610 1,839,610 737,585 735,741 735,741 735,741 765,910 763,620 763,620 763,620 975,616 978,567 978,567 978,567
One-year variable remuneration   550,000 0 825,000 550,000 550,000 0 825,000 550,000 550,000 0 825,000 675,000 675,000 0 1,012,500
Multi-year variable remuneration 706,533 0 1,650,000 707,299 706,533 0 1,650,000 707,299 706,533 0 1,650,000 868,049 867,109 0 2,025,000
Of which: 2016 Variable II (4-year term)         550,000       550,000       675,000      
Of which: 2017 Variable II (4-year term)   550,000 0 825,000   550,000 0 825,000   550,000 0 825,000   675,000 0 1,012,500
Of which: 2016 Share Matching Plan (4-year term)         157,299       157,299       193,049      
Of which: 2017 Share Matching Plan (4-year term)   156,533 0 825,000   156,533 0 825,000   156,533 0 825,000   192,109 0 1,012,500
Total 3,096,143 1,839,610 4,314,610 1,994,884 1,992,274 735,741 3,210,741 2,023,209 2,020,153 763,620 3,238,620 2,518,665 2,520,676 978,567 4,016,067
Service cost   305,625 305,625 305,625 269,168 272,566 272,566 272,566 250,534 247,956 247,956 247,956 213,170 291,092 291,092 291,092
Total compensation 3,401,768 2,145,235 4,620,235 2,264,052 2,264,840 1,008,307 3,483,307 2,273,743 2,268,109 1,011,576 3,486,576 2,731,835 2,811,768 1,269,659 4,307,159
 
a This amount includes a one-time sign-on bonus of EUR 500,000 and a payment of EUR 620,000 to compensate for the loss of share-based compensation he would have been entitled to at the previous employer. Srini Gopalan was obligated to invest the net amount paid out from the compensation payment in shares of Deutsche Telekom AG. Upon expiry of lock-up period, he can freely dispose of these shares.

Benefits allocated for the reporting year

Unlike the table of benefits granted shown on the previous page, the table below contains not the target values for short- and long-term variable remuneration components, but rather the actual benefits allocated for 2017. There is another difference between the following table and the table of benefits granted with regard to the presentation of the Share Matching Plan. The figures for the Share Matching Plan disclosed in the following table show the value of the benefits allocated applicable under German tax law at the time of transfer of the matching shares, whereas the table of benefits granted on the previous pages shows the fair values of remuneration at the grant date.

Compensation of the Board of Management
  Timotheus Höttges Reinhard Clemens Niek Jan van Damme Thomas Dannenfeldt Srini Gopalan Dr. Christian P. Illek Dr. Thomas Kremer Claudia Nemat
  Function: Chairman of the Board of Management (CEO)
since Jan. 1, 2014
Function: T-Systems
until Dec. 31, 2017
Function: Germany
until Dec. 31, 2017
Function: Finance (CFO)
since Jan. 1, 2014
Function: Europe
since Jan. 1, 2017
Function: Human Resources
since Apr. 1, 2015
Function: Data Privacy, Legal Affairs and Compliance
since June 1, 2012
Function: Technology and Innovation
since Oct. 1, 2011
  2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
Fixed remuneration 1,450,000 1,450,000 840,000 840,000 850,000 850,000 860,000 860,000   700,000 700,000 700,000 700,000 700,000 900,000 900,000
Fringe benefits 156,742 29,061 25,221 20,387 28,913 27,040 26,711 24,631   1,139,610 c 37,585 35,741 65,910 63,620 75,616 78,567
Total fixed annual remuneration 1,606,742 1,479,061 865,221 860,387 878,913 877,040 886,711 884,631 1,839,610 737,585 735,741 765,910 763,620 975,616 978,567
One-year variable remuneration 1,760,704 1,749,968 733,850 709,800 781,172 821,744 858,270 835,490   654,500 674,850 685,850 666,600 654,500 807,975 804,600
Multi-year variable remuneration 1,099,526 1,585,809 839,525 1,118,579 749,066 1,132,139 0 572,000 0 0 0 396,000 795,928 596,283 1,178,312
Of which: Variable II (4-year term) a 547,560 1,135,680 468,000 676,000 396,000 665,687 0 572,000   0 0 0 396,000 572,000 486,000 702,000
Of which: Share Matching Plan (4-year term) b 551,966 450,129 371,525 442,579 353,066 466,452 0 0   0 0 0 0 223,928 110,283 476,312
Other 0 0 0 0 0 0 0 0   0 0 0 0 0 0 0
Total 4,466,972 4,814,838 2,438,596 2,688,766 2,409,151 2,830,923 1,744,981 2,292,121 2,494,110 1,412,435 1,421,591 1,828,510 2,214,048 2,379,874 2,961,479
Service cost 1,030,510 1,129,225 737,710 797,142 303,289 302,706 276,804 281,578 305,625 269,168 272,566 250,534 247,956 213,170 291,092
Total compensation 5,497,482 5,944,063 3,176,306 3,485,908 2,712,440 3,133,629 2,021,785 2,573,699 2,799,735 1,681,603 1,694,157 2,079,044 2,462,004 2,593,044 3,252,571
 
a Variable II as shown in the column for 2017 relates to the payment of the 2014 tranche; the figure in the column for 2016 relates to the payment of the 2013 tranche.
b The Share Matching Plan relates to the non-cash benefit arising from the inflow of the matching shares, with the corresponding personal investment having been made in 2012 or 2013.
c This amount includes a one-time sign-on bonus of EUR 500,000 and a payment of EUR 620,000 to compensate for the loss of share-based compensation he would have been entitled to at the previous employer.Srini Gopalan was obligated to invest the net amount paid out from the compensation payment in DTAG shares. Upon expiry of lock-up period, he can freely dispose of these shares.

COMPENSATION OF THE SUPERVISORY BOARD

The compensation received by the members of the Supervisory Board is specified under § 13 of the Articles of Incorporation of Deutsche Telekom AG. Under the compensation system applicable for the 2017 financial year, members of the Supervisory Board receive fixed annual compensation of EUR 70,000.00.

The Chairman of the Supervisory Board receives a further EUR 70,000.00 and the Deputy Chairman EUR 35,000.00. Members of the Supervisory Board also receive compensation as follows for activities on Supervisory Board committees:

(a) The Chairman of the Audit Committee receives EUR 80,000.00, ordinary members of the Audit Committee EUR 40,000.00.

(b) The Chairman of the General Committee receives EUR 70,000.00, ordinary members of the General Committee EUR 30,000.00.

(c) The Chairman of the Nomination Committee receives EUR 25,000.00, ordinary members of the Nomination Committee EUR 12,500.00.

(d) The Chairman of any other committee receives EUR 40,000.00, ordinary members of any other committee EUR 25,000.00.

Chairmanship and membership of the Mediation Committee are not remunerated.

Members of the Supervisory Board receive an attendance fee amounting to EUR 1,000.00 for each meeting of the Supervisory Board or its committees that they have attended. The Company reimburses value-added tax payable on remuneration and expenses.

The total compensation of the members of the Supervisory Board in 2017 amounted to EUR 2,899,500.00 (plus VAT).

The Company has not granted any advances or loans to current or former Supervisory Board members, nor were any other financial obligations to the benefit of this group of people entered into.

The compensation of the individual members of the Supervisory Board for 2017 is as follows:

Member of the Supervisory Board Fixed remuneration Meeting attendance fee Total
Baldauf, Sari 95,000.00 12,000.00 107,000.00
Bednarski, Josef 165,000.00 25,000.00 190,000.00
Dr. Bernotat, Wulf H. (until August 27, 2017 †) 80,000.00 7,000.00 87,000.00
Brandl, Monika 95,000.00 12,000.00 107,000.00
Geismann, Johannes 158,750.00 27,000.00 185,750.00
Hanas, Klaus-Dieter 95,000.00 12,000.00 107,000.00
Hauke, Sylvia a (until June 30, 2017) 60,000.00 6,000.00 66,000.00
Hinrichs, Lars 95,000.00 14,000.00 109,000.00
Dr. Jung, Helga 70,000.00 10,000.00 80,000.00
Kallmeier, Hans-Jürgen b (until Dec. 31, 2017) 135,000.00 19,000.00 154,000.00
Prof. Dr. Kaschke, Michael 110,000.00 14,000.00 124,000.00
Koch, Nicole c 70,000.00 10,000.00 80,000.00
Kollmann, Dagmar P. 187,500.00 21,000.00 208,500.00
Kreusel, Petra Steffi d 110,000.00 17,000.00 127,000.00
Prof. Dr. Lehner, Ulrich (Chairman) 300,000.00 27,000.00 327,000.00
Schröder, Lothar e (Deputy Chairman) 240,000.00 25,000.00 265,000.00
Dr. Schröder, Ulrich 135,000.00 2,000.00 137,000.00
Sommer, Michael 111,666.67 14,000.00 125,666.67
Spoo, Sibylle 95,000.00 8,000.00 103,000.00
Streibich, Karl-Heinz 120,000.00 17,000.00 137,000.00
Suckale, Margret (since September 28, 2017) 29,583.33 3,000.00 32,583.33
Topel, Karin (since July 1, 2017) 35,000.00 5,000.00 40,000.00
  2,592,500.00 307,000.00 2,899,500.00
 
a In addition to remuneration for her activities as a member of the Supervisory Board of Deutsche Telekom AG, Sylvia Hauke also received other remuneration amounting to EUR 8,000.00 (including meeting attendance fees) in the 2017 financial year (for her mandate as member of the supervisory board of Telekom Deutschland GmbH).
b In addition to remuneration for his activities as a member of the Supervisory Board of Deutsche Telekom AG, Hans-Jürgen Kallmeier also received other remuneration amounting to EUR 16,000.00 (including meeting attendance fees) in the 2017 financial year (for his mandate as member of the supervisory board of T-Systems International GmbH).
c In addition to remuneration for her activities as a member of the Supervisory Board of Deutsche Telekom AG, Nicole Koch also received other remuneration amounting to EUR 4,500.00 (including meeting attendance fees) in the 2017 financial year (for her mandate as member of the supervisory board of Telekom Shop Vertriebsgesellschaft mbH).
d In addition to remuneration for her activities as a member of the Supervisory Board of Deutsche Telekom AG, Petra Steffi Kreusel also received other remuneration amounting to EUR 15,500.00 (including meeting attendance fees) in the 2017 financial year (for her mandate as member of the supervisory board of T-Systems International GmbH).
e In addition to remuneration for his activities as a member of the Supervisory Board of Deutsche Telekom AG, Lothar Schröder also received other remuneration amounting to EUR 25,000.00 (including meeting attendance fees) in the 2017 financial year (EUR 19,000.00 for his mandate as member of the supervisory board of Deutsche Telekom Services Europe GmbH and EUR 6,000.00 as Chairman of the Data Privacy Advisory Council).