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

The Supervisory Board resolved on December 16, 2015 to extend Claudia Nemat’s term of office on the Board of Management effective October 1, 2016. Dr. Thomas Kremer was reappointed as member of the Board of Management responsible for Data Privacy, Legal Affairs and Compliance effective June 1, 2017 as per the Supervisory Board’s resolution of August 30, 2016. As of December 14, 2016, the Supervisory Board renewed Reinhard Clemens’ term of office on the Board of Management effective December 1, 2017. On January 1, 2017, the Deutsche Telekom AG Board of Management was expanded to include the additional Board department Technology and Innovation, headed by Claudia Nemat. Srini Gopalan joined the Board of Management as of January 1, 2017 as the member responsible for Europe, in line with the Supervisory Board’s resolution of June 30, 2016.

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 new 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 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 further 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 2016 financial year, the following absolute nominal amounts were pledged to the Board of Management members in the event of 100-percent target achievement.

   
    2016 tranche 2015 tranche
Reinhard Clemens 650,000 650,000
Niek Jan van Damme 644,000 644,000
Thomas Dannenfeldt 670,000 550,000
Timotheus Höttges 1,342,000 1,342,000
Dr. Christian P. Illek 550,000 515,625
Dr. Thomas Kremer 550,000 550,000
Claudia Nemat 675,000 675,000

Information on the Share Matching Plan. In the 2016 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 2016 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 2016. 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 2016 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 2016 financial year may be higher or lower than the amounts estimated here.

The total share-based payment expense for entitlements to matching shares from 2010 to 2016 to be recognized for the financial years 2015 and 2016 pursuant to IFRS 2 is included in the two last columns of the table.

             
  Number of entitlements granted to matching shares since 2010 at the beginning of the financial year Number of new entitlements to matching shares granted in 2016 Number of shares transferred in 2016 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 2016 for matching shares for the years 2012 through 2016
 €
 Cumulative total share-based payment expense in 2015 for matching shares for the years 2011 through 2015
 €
Reinhard Clemens 144,144 14,344 24,125 185,899 184,443 161,823
Niek Jan van Damme 134,918 14,212 22,239 184,183 188,132 155,728
Thomas Dannenfeldt 27,649 14,785 0 191,619 120,267 69,482
Timotheus Höttges 203,389 29,615 35,417 383,809 353,485 235,655
Dr. Christian P. Illek 11,121 12,137 0 157,299 60,164 24,409
Dr. Thomas Kremer 58,410 12,137 0 157,299 143,105 86,360
Claudia Nemat 89,389 14,896 7,011 193,049 193,228 136,066

By December 31, 2016, 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 2016, matching shares were again transferred to individual members of the Board of Management. A total of 88,792 shares were transferred to Board of Management members in 2016 (2015: 64,955).

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 2016  Defined benefit obligation (DBO) Dec. 31, 2016 Service cost 2015 Defined benefit obligation (DBO) Dec. 31, 2015
Reinhard Clemens 737,710 7,132,977 779,940 5,829,077
Niek Jan van Damme 303,289 2,874,190 312,100 2,445,816
Thomas Dannenfeldt 276,804 903,460 288,525 573,411
Timotheus Höttges 1,030,510 11,203,561 1,096,569 9,138,086
Dr. Christian P. Illek 269,168 496,574 204,741 204,741
Dr. Thomas Kremer 250,534 1,253,693 254,966 965,594
Claudia Nemat 213,170 1,756,131 296,866 1,344,197

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, 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 2016 financial year. In reliance on legal requirements and other guidelines, a total of EUR 16.7 million (2015: EUR 17.6 million) is reported in the following table as total compensation for the 2016 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 2016 840,000 25,221 733,850 468,000 185,899 2,252,970
  2015 840,000 17,914 780,650 578,500 190,015 2,407,079
Niek Jan van Damme 2016 850,000 28,913 781,172 396,000 184,183 2,240,268
  2015 850,000 30,333 791,476 489,500 188,309 2,349,618
Thomas Dannenfeldt 2016 860,000 26,711 858,270 191,619 1,936,600
  2015 700,000 25,040 693,550 160,823 1,579,413
Timotheus Höttges 2016 1,450,000 156,742 1,760,704 547,560 383,809 4,298,815
  2015 1,450,000 67,166 1,753,994 578,500 392,408 4,242,068
Dr. Christian P. Illek 2016 700,000 37,585 674,850 157,299 1,569,734
  2015 525,000 1,226,828 495,413 121,621 2,368,862
Dr. Thomas Kremer 2016 700,000 65,910 666,600 396,000 157,299 1,985,809
  2015 700,000 62,854 665,500 438,510 160,823 2,027,687
Claudia Nemat 2016 900,000 75,616 807,975 486,000 193,049 2,462,640
  2015 900,000 69,704 810,675 600,750 197,373 2,578,502
  2016 6,300,000 416,698 6,283,421 2,293,560 1,453,157 16,746,836
  2015 5,965,000 1,499,839 5,991,258 2,685,760 1,411,372 17,553,229

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 2013 financial year.

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 7.2 million (2015: EUR 7.1 million) was granted for payments to and entitlements for former members of the Board of Management as well as any surviving dependents.

Provisions (measured in accordance with IAS 19) totaling EUR 201.6 million (December 31, 2015: EUR 188.1 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.

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
since Dec. 1, 2007
Function: Germany
since Mar. 1, 2009
Function: Finance (CFO)
since Jan. 1, 2014
  2015 2016 2016 (min.) 2016 (max.) 2015 2016 2016 (min.) 2016 (max.) 2015 2016 2016 (min.) 2016 (max.) 2015 2016 2016 (min.) 2016 (max.)
Fixed remuneration 1,450,000 1,450,000 1,450,000 1,450,000 840,000 840,000 840,000 840,000 850,000 850,000 850,000 850,000 700,000 860,000 860,000 860,000
Fringe benefits 67,166 156,742 156,742 156,742 17,914 25,221 25,221 25,221 30,333 28,913 28,913 28,913 25,040 26,711 26,711 26,711
Total fixed annual remuneration 1,517,166 1,606,742 1,606,742 1,606,742 857,914 865,221 865,221 865,221 880,333 878,913 878,913 878,913 725,040 886,711 886,711 886,711
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 0 966,000 550,000 670,000 0 1,005,000
Multi-year variable remuneration 1,734,408 1,725,809 0 4,026,000 840,015 835,899 0 1,950,000 832,309 828,183 0 1,932,000 710,823 861,619 0 2,010,000
Of which: 2015 Variable II
(4-year term)
1,342,000       650,000       644,000       550,000      
Of which: 2016 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: 2015 Share Matching Plan
(4-year term)
392,408       190,015       188,309       160,823      
Of which: 2016 Share Matching Plan
(4-year term)
  383,809 0 2,013,000   185,899 0 975,000   184,183 0 966,000   191,619 0 1,005,000
Total 4,593,574 4,674,551 1,606,742 7,645,742 2,347,929 2,351,120 865,221 3,790,221 2,356,642 2,351,096 878,913 3,776,913 1,985,863 2,418,330 886,711 3,901,711
Service cost 1,096,569 1,030,510 1,030,510 1,030,510 779,940 737,710 737,710 737,710 312,100 303,289 303,289 303,289 288,525 276,804 276,804 276,804
Total compensation 5,690,143 5,705,061 2,637,252 8,676,252 3,127,869 3,088,830 1,602,931 4,527,931 2,668,742 2,654,385 1,182,202 4,080,202 2,274,388 2,695,134 1,163,515 4,178,515
                                 
  Dr. Christian P. Illek Dr. Thomas Kremer Claudia Nemat        
  Function: Human Resources
since Apr. 1, 2015
Function: Data Privacy, Legal Affairs and Compliance
since June 1, 2012
Function: Europe and Technology
since Oct. 1, 2011
       
  2015 2016 2016 (min.) 2016 (max.) 2015 2016 2016 (min.) 2016 (max.) 2015 2016 2016 (min.) 2016 (max.)        
Fixed remuneration 525,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 900,000 900,000 900,000 900,000        
Fringe benefits 1,226,828 37,585 37,585 37,585 62,854 65,910 65,910 65,910 69,704 75,616 75,616 75,616        
Total fixed annual remuneration 1,751,828 737,585 737,585 737,585 762,854 765,910 765,910 765,910 969,704 975,616 975,616 975,616        
One-year variable remuneration 412,500 550,000 0 825,000 550,000 550,000 0 825,000 675,000 675,000 0 1,012,500        
Multi-year variable remuneration 637,246 707,299 0 1,650,000 710,823 707,299 0 1,650,000 872,373 868,049 0 2,025,000        
Of which: 2015 Variable II
(4-year term)
515,625       550,000       675,000              
Of which: 2016 Variable II
(4-year term)
  550,000 0 825,000   550,000 0 825,000   675,000 0 1,012,500        
Of which: 2015 Share Matching Plan
(4-year term)
121,621       160,823       197,373              
Of which: 2016 Share Matching Plan
(4-year term)
  157,299 0 825,000   157,299 0 825,000   193,049 0 1,012,500        
Total 2,801,574 1,994,884 737,585 3,212,585 2,023,677 2,023,209 765,910 3,240,910 2,517,077 2,518,665 975,616 4,013,116        
Service cost 204,741 269,168 269,168 269,168 254,966 250,534 250,534 250,534 296,866 213,170 213,170 213,170        
Total compensation 3,006,315 2,264,052 1,006,753 3,481,753 2,278,643 2,273,743 1,016,444 3,491,444 2,813,943 2,731,835 1,188,786 4,226,286        

Benefits allocated for the reporting year

Unlike the table of benefits granted shown on the previous pages, the table below contains not the target values for short- and long-term variable remuneration components, but rather the actual benefits allocated for 2016. 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 Dr. Christian P. Illek Dr. Thomas Kremer Claudia Nemat
  Function: Chairman of the Board of Management (CEO)
since Jan. 1, 2014
Function: T-Systems
since Dec. 1, 2007
Function: Germany
since Mar. 1, 2009
Function: Finance (CFO)
since Jan. 1, 2014
Function: Human Resources
since Apr. 1, 2015
Function: Data Privacy, Legal Affairs and Compliance
since June 1, 2012
Function: Europe and Technology
since Oct. 1, 2011
  2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
Fixed remuneration 1,450,000 1,450,000 840,000 840,000 850,000 850,000 700,000 860,000 525,000 700,000 700,000 700,000 900,000 900,000
Fringe benefits 67,166 156,742 17,914 25,221 30,333 28,913 25,040 26,711 1,226,828 37,585 62,854 65,910 69,704 75,616
Total fixed annual remuneration 1,517,166 1,606,742 857,914 865,221 880,333 878,913 725,040 886,711 1,751,828 737,585 762,854 765,910 969,704 975,616
One-year variable remuneration 1,753,994 1,760,704 780,650 733,850 791,476 781,172 693,550 858,270 495,413 674,850 665,500 666,600 810,675 807,975
Multi-year variable remuneration 965,664 1,099,526 917,069 839,525 763,439 749,066 0 0 0 0 438,510 396,000 600,750 596,283
Of which: Variable II
(4-year term) a
578,500 547,560 578,500 468,000 489,500 396,000 0 0 0 0 438,510 396,000 600,750 486,000
Of which: Share Matching Plan
(4-year term) b
387,164 551,966 338,569 371,525 273,939 353,066 0 0 0 0 0 0 0 110,283
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 4,236,824 4,466,972 2,555,633 2,438,596 2,435,248 2,409,151 1,418,590 1,744,981 2,247,241 1,412,435 1,866,864 1,828,510 2,381,129 2,379,874
Service cost 1,096,569 1,030,510 779,940 737,710 312,100 303,289 288,525 276,804 204,741 269,168 254,966 250,534 296,866 213,170
Total compensation 5,333,393 5,497,482 3,335,573 3,176,306 2,747,348 2,712,440 1,707,115 2,021,785 2,451,982 1,681,603 2,121,830 2,079,044 2,677,995 2,593,044
                             
a Variable II as shown in the column for 2016 relates to the payment of the 2013 tranche; the figure in the column for 2015 relates to the payment of the 2012 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 2011 or 2012.

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 2016 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:

  1. The Chairman of the Audit Committee receives EUR 80,000.00, ordinary members of the Audit Committee EUR 40,000.00.
  2. The Chairman of the General Committee receives EUR 70,000.00, ordinary members of the General Committee EUR 30,000.00.
  3. The Chairman of the Nomination Committee receives EUR 25,000.00, ordinary members of the Nomination Committee EUR 12,500.00.
  4. 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 2016 amounted to EUR 2,858,916.68 (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 2016 is as follows:

     
Member of the Supervisory Board Fixed remuneration Meeting attendance fee Total
Baldauf, Sari 95,000.00 8,000.00 103,000.00
Bednarski, Josef 165,000.00 25,000.00 190,000.00
Dr. Bernotat, Wulf H. 120,000.00 10,000.00 130,000.00
Brandl, Monika 95,000.00 10,000.00 105,000.00
Geismann, Johannes 152,500.00 24,000.00 176,500.00
Dr. von Grünberg, Hubertus (until May 25, 2016) 45,833.34 3,000.00 48,833.34
Hanas, Klaus-Dieter 95,000.00 9,000.00 104,000.00
Hauke, Sylvia a 120,000.00 9,000.00 129,000.00
Hinrichs, Lars 95,000.00 9,000.00 104,000.00
Dr. Jung, Helga (since May 25, 2016) 46,666.67 5,000.00 51,666.67
Kallmeier, Hans-Jürgen b 135,000.00 15,000.00 150,000.00
Prof. Dr. Kaschke, Michael 110,000.00 11,000.00 121,000.00
Koch, Nicole c (since January 1, 2016) 70,000.00 7,000.00 77,000.00
Kollmann, Dagmar P. 187,500.00 16,000.00 203,500.00
Kreusel, Petra Steffi d 110,000.00 14,000.00 124,000.00
Prof. Dr. Lehner, Ulrich (Chairman) 300,000.00 21,000.00 321,000.00
Schröder, Lothar e (Deputy Chairman) 233,750.00 20,000.00 253,750.00
Dr. Schröder, Ulrich 135,000.00 7,000.00 142,000.00
Sommer, Michael 95,000.00 6,000.00 101,000.00
Spoo, Sibylle 95,000.00 7,000.00 102,000.00
Streibich, Karl-Heinz 111,666.67 10,000.00 121,666.67
  2,612,916.68 246,000.00 2,858,916.68
 
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 15,000.00 (including meeting attendance fees) in the 2016 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 2016 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 2016 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 14,500.00 (including meeting attendance fees) in the 2016 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 38,500.00 (including meeting attendance fees) in the 2016 financial year (EUR 20,000.00 for his mandate as member of the supervisory board of Telekom Deutschland GmbH, EUR 6,500.00 for his mandate as a member of the supervisory board of Deutsche Telekom Services Europe GmbH, and EUR 12,000.00 as Chairman of the Data Privacy Advisory Council).