Performance-based compensation

Recognition of individual performance on the part of our employees through a fair compensation strategy in line with market practices is a fundamental component of our corporate culture. It is self-evident that this system makes no differences in compensation between male and female employees.

To reward personal engagement and individual contributions to our company’s business performance, the salaries of approximately 9,000 managerial employees include success-related components. The annual individual performance assessment has a particularly strong influence on these bonus payments. While global guidelines exist for the compensation for managers, the incentive systems for our non-managerial employees are based on cultural and local requirements.

Regarding bonus payments, the assessment of employees’ performance is always done in the context of our corporate Vision and Values. Individual target agreements with employees also include sustainability criteria, such as reducing energy and water consumption or accident rates, if these fall within the sphere of influence of the employee concerned and have a clear bearing on business performance. Furthermore, in their target achievement meetings, each employee must confirm compliance with all applicable legal regulations and Henkel standards.

Our contribution to social security

Our employees benefit worldwide from a high level of social insurance provisions. In countries where no state social insurance system exists or such a system covers only basic needs, we organize our own measures and initiatives to supplement state health and pension insurance provisions. In terms of health insurance, our employess are covered either by public health insurance plans or have the option of participating in programs offered by the company. One example of this is the USA where public health insurance arrangements are only just being introduced. Here, we offer all employees the opportunity to participate in private health insurance plans. Furthermore, in countries where state pension systems do not provide sufficient coverage, Henkel has established programs allowing employees to participate in company pension provision plans.

Last updated: March 6, 2013