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 three targets. Whenever a target is reached, a certain sum is issued to you in ordinary shares of Fresenius SE & Co. KGaA. Two out of three 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 relate to the previous financial year. Your shares will be paid out in June of the current year.
Employees of the following companies who have been working at Fresenius for at least one year from the time the offer is announced (at the start of April in any given year) can take part in the scheme.
The goals
Consolidated result
Cybersecurity: Training
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 € 300 (based on full-time employment) in shares. If we achieve a quota of at least 75%, we will pay out € 200 in shares. We cannot be satisfied with a lower quota – so if this happens, there will be no payouts 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 € 2.000 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 financial year. In spring of the following year you will receive the offer to receive the free shares. The shares will then be transferred to your securities account in June.
Instructions – what you have to do
Accept the offer
To receive the shares, you must accept the offer in the tOption portal and enter your securities account details. Please note the deadline for participation, which you can find in the offer documents. The shares will be credited to your securities account in June.
No securities account yet?
You need a securities account to be able to receive the shares through Fresenius SHARE. This can be at nearly any bank; the main thing is that it is in your name. You can find further information on the securities account here. A list of banks where storage of employee shares is not possible can be found here.
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.