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Variable Compensation

The success of a location, a division or the Corporation as a whole depends to a significant extent on the commitment of each individual employee. Continental is therefore endeavored to spur its employees at all levels on to peak performance and to let them partake of the company’s success.

Continental has two systems of variable compensation:

  1. Individual:Middle and top management throughout the corporation share in the company’s profits by means of a process of agreed-upon annual targets. This model is to be expanded in the future to include other employee groups.

    The variable component of the executive’s salary is based on a scale structure and increases in accordance with his or her position ranking. The bonuses are determined by three parameters: the value created year-on-year by the executive for his or her business unit, the return on capital employed and the attainment of individual goals. In addition, the Executive Board can set a strategic goal for executives.

  2. Location: In the scope of group work, commercial staff receive additional compensation when specified targets are met. A reduction in the number of rejects or downtime or optimization of quality are examples of the criteria applied here.

In addition the Executive Board decided to introduce an annual profit sharing program for all employees around the world. A corporate-wide agreement to this effect was concluded with the corporate works council in Germany.

The program allows Continental Corporation employees to participate directly in the success of the company in that they receive a bonus. The amount of the bonus paid depends on the Continental Corporation's absolute value contribution for the respective fiscal year. The portion of profits distributed for 2011 totaled about €70 million.