Achieve goals – receive shares
We have our eye on our targets. So let’s set out to reach them. And once we get there, we are going to share our success – by paying out free Fresenius shares.
The principle – how to receive shares
We have defined four targets. Whenever a target is reached, a certain sum is issued to you in ordinary shares of Fresenius SE & Co. KGaA. Three out of four targets have a graduated target attainment, which means that you receive a payout even if we do not achieve 100% of our target. If Fresenius reaches all of the targets it set, you are issued shares worth € 1,100 (based on full-time employment).
The targets refer to the 2023 business year – so the clock is running. Your shares will be paid out in June 2024.
Employees of the following companies who have been working at Fresenius for at least one year from the time the offer is announced (usually at the start of April in any given year) can take part in the scheme.
What is new?
Every target results in shares
More security
Whenever a target is reached or partially reached, a defined Euro sum is issued in shares. This means that: You will receive shares for the targets we reach, even if we miss other targets. This makes the payout of Fresenius SHARE easier to plan and more secure than the profit-sharing scheme we used to have.
New targets
Closer
As well as classic economic performance indicators, non-financial goals are now also coming into focus. This is because they are just as important for our success as a company as the financial goals. And they are directly related to your day-to-day work – which means you can shape target attainment more directly.
Tax allowance
Leverage your advantage
The provision of the free shares is a non-cash benefit and as such is actually taxable and subject to contributions. The good news is that there is a tax allowance of € 1,440 a year. This sum takes both components into account, i.e., the payout of free shares and the opportunity to buy shares. Generally, no tax or social contributions are payable.
Once the shares have been transferred to your securities account, as a shareholder you are liable for any tax due, such as tax on dividends or on the sale of shares.
The goals
Consolidated result
Cybersecurity: Training
Cybersecurity: Rating
Quality
Financial success
Our financial target is based on our core performance indicator within the group – the consolidated result. If this rises (before extraordinary effects) over the previous year, the financial goal is attained and a payout of € 500 (based on full-time employment) is awarded. If we do not improve, there is no payout for this target.
Up-do-date knowledge
The training catalog listing all cybersecurity courses relevant to attaining targets can be found here (Fresenius-Intranet Fred via "Benefits for Employees - Financial Benefits - Fresenius SHARE"). To ensure that you refresh and update your cybersecurity knowledge, it is important that you attend at least one course every year.
Our target: At least 85% of employees should complete at least one training course – then we pay out € 150 (based on full-time employment) in shares. If we achieve a quota of at least 75%, we will pay out € 100 in shares. We cannot be satisfied with a lower quota – so if this happens, there will be no payouts for this target.
The objective view
For many years now, rating agencies have assessed the economic strength and trustworthiness of a company. But how trustworthy is a company in terms of the secure handling of data and data flows? This is another point that is assessed objectively and comprehensibly by specialist rating agencies. They scrutinize every point where Fresenius is open to attack. They look at any potential vulnerabilities, which largely arise from the behavior of all users and the configuration of cybersecurity controls. For example, it is about what to do with phishing emails, using only permitted tools and websites, and the timely updating (patching) of our software – all aspects that influence you in your day-to-day work.
Our targets are based on the classification by the Cyber Risk Analytics & Security Rating-Agency BitSight: An A means we have comfortably reached our target. In this case, we pay out € 150 (based on full-time employment). If we are awarded a B, it is € 100. We cannot be satisfied with our activities if we are only awarded a C: In this case, there is no payout for this target.
The measurable foundation
The quality of our work is essential for our success. At Fresenius SHARE we assess this based on the Kabi Audit & Inspection Score, which is also referenced in the annual business report. This measures critical and serious deviations arising from GMP inspections and identifies serious deviations in the ISO-9001 audit. The lower the score, the higher the quality and the payout:
At a score of max. 2.3, we have reached our target and distribute € 300. If the score is max. 2.9, this drops to € 200, and at max. 3.4 it is € 100. If the score is above 3.4, there is no payout for this target.
Rules
Lock-up period
The shares are subject to a 2-year lock-up period during which they cannot be sold. After the lock-up period, it is up to you whether you sell your shares or keep them as a long-term investment. The lock-up period starts retrospectively on January 1st in the year the shares were deposited to your account.
Tax allowance
The payout of the shares is a non-cash benefit and as such is actually taxable and subject to contributions. The good news is that there is a tax allowance of € 1,440 a year. This sum takes both components into account, i.e., the receipt of free shares and the opportunity to buy shares so there are generally no taxes or social contributions to be paid.
Once the shares have been transferred to your securities account, as a shareholder you are liable for any tax due, such as tax on dividends or on the sale of shares.
Milestones
The schedule
Target attainment is measured over the course of the entire year 2023. In spring 2024 you will receive the offer to receive the free shares. The shares will then be transferred to your securities account in June 2024.
Instructions – what you have to do
Register to participate
All transactions relating to Fresenius SHARE are managed easily and conveniently via the tOption portal. We will inform you about the details of the registration in 2024. You will also find information about the registration for participation on this website in due time.
Accept the offer
To receive the shares, you have to accept the offer and specify a securities account. We will provide you with the details in good time.
No securities account yet?
You need a securities account to be able to receive the shares through Fresenius SHARE. This can be at any bank; the main thing is that it is in your name.
If you do not have a securities account yet, you can open one easily with our cooperation partner, Commerzbank; it is free, as long as you only hold shares from Fresenius SHARE and the securities account is opened online via this link: www.commerzbank.de/mitarbeiterbeteiligung.
If you already have a securities account at the Commerzbank where you only hold shares from previous profit-sharing schemes, this remains free-of-charge.