GOV-3 – Integration of sustainability-related performance in incentive schemes

Since 2016, the compensation system of Rentenbank’s Management Board has consisted exclusively of a fixed remuneration model. No variable remuneration components or performance-related remuneration elements are provided for. Accordingly, the remuneration of the Management Board is not linked to sustainability-related targets, metrics or performance indicators. The remuneration of the members of the Management Board is determined and regularly reviewed by the Supervisory Board.

The remuneration of the members of the Supervisory Board likewise does not include any variable or performance-related components. Remuneration is not linked to the achievement of sustainability-related targets. The remuneration of the members of the Supervisory Board is determined by resolution of the General Meeting; this resolution requires the approval of the supervisory authority. In setting remuneration, due regard is given to the responsibility and scope of activity of the individual members of the Supervisory Board and to Rentenbank’s economic position.

The remuneration model reflects Rentenbank’s role as a public promotional bank. Through this model, Rentenbank ensures that no misaligned incentives arise and that decisions are taken strictly in accordance with the legal framework and the promotional mandate. Sustainability-related aspects are therefore not managed through monetary incentive mechanisms, but through the binding integration of sustainability matters into strategy, business processes, risk management and governance structures.