Metzler's remuneration system
Staff loyalty and risk avoidance are our priorities
With a staff of some 800 employees (as of 2015) and a clearly-defined business focus, the Metzler Group displays a very low-risk corporate structure. The personal liability of our management and the restrictive, risk-averse alignment of our activities in respect of own-account trading and the lending business prevent the group entering into any unreasonable risk positions. All this and sustainability are given top priority in the Metzler Group's remuneration policy. The remuneration system is part of the business and risk strategy and is therefore given a long-term perspective. In view of these principles, especially the institution's risk-sensitive business focus, its size and our average balance sheet total of the past three years, Metzler is not defined a material institution within the meaning of section 17 of the German Remuneration Ordinance for Institutions (Institutsvergütungsverordnung; InstitutsVergV). Furthermore, the remuneration principles for employees of capital management companies within the meaning of section 37 of the German Investment Law (Kapitalanlagegesetzbuch; KAGB) in conjunction with art. 13 and appendix II of EU Directive 2011/61 governing managers of alternative investment funds (Alternative Investment Fund Manager Directive) and the Final Report "Guidelines on key concepts of the AIFMD" of the European Securities and Markets Authority (ESMA) and the guidelines proclaimed generally binding by the Federal Financial Supervisory Office (BaFin), are applied in the following way: In view of the business focus of the Metzler Group, the decision has been made on the basis of the proportionality principle not to apply the provisions relating to the payment process and the remuneration committee.
Metzler's remuneration system is restricted to the granting of fixed (base salary) and variable (bonus or special payments) remuneration components. The present occupational pension plan is structured in such a way that it does not include any discretionary pension benefits. The corporate structure already precludes the possibility of assurances being made which would restrict or undermine the risk alignment of the remuneration system. Through strict organizational separation of market activities and risk controlling, which extends from the operational responsibility to the responsibility of the partners, the bank ensures that no parallel remuneration parameters are applied.
The base salary provides our employees with a basic remuneration for their work which reflects the tasks entrusted to them and ensures long-term bonding of employees to Metzler. The system thus rules out any significant dependence on variable remuneration components so that the possibility of employees feeling urged to take unreasonable risks is avoided. That is also the result of the full flexibility of our remuneration policy, which provides for variable payments to be scaled back to zero in certain circumstances.
Special payments and bonus payments
The variable remuneration at Metzler consists exclusively of special payments and bonus payments. The remuneration parameters are 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. However, the final decision on the level of such special payments and bonus payments is made at the sole discretion of the partners. The structure of the remuneration system and, above all, the calculation of the base salary, prevent a significant dependence on variable remuneration. The upper limit for variable remuneration is set at a maximum 100% of the annual base salary. This applies for all divisions and companies of the Metzler Group.
Payments for 2015
For business year 2015, 763 employees (540 of which are entitled to bonus premiums) were paid a total of EUR 74,991,000 as base salary and EUR 23,925,000 as bonus payments. These amounts were allocated to front office and back office employees as follows:
|Front office (311 employees)||Back office (452 employees)|
|Base salary||Bonus||Base salary||Bonus|
|EUR 35,130,000||EUR 13,711,000||EUR 39,861,000||EUR 10,214,000|