Remuneration system for members of the Supervisory Board

The current remuneration system for the members of the Supervisory Board of First Sensor AG was approved by the Annual General Meeting on June 24, 2021 with a majority of 99.9%.

The Supervisory Board members of First Sensor AG receive fixed remuneration for their activities in an amount dependent on the individual tasks assumed within the Supervisory Board. Variable remuneration dependent on the attainment of specific successes/targets is not provided for Supervisory Board members.

The Supervisory Board reviews the structure and appropriateness of its remuneration at irregular intervals, but no less than once every four years, with the assistance of the Nomination and Remuneration Committee. Due to the particular type of Supervisory Board remuneration, which is for activities which fundamentally differ from those of the company's employees due to their supervisory nature, no “vertical” comparison with employee remuneration is carried out.

Each Supervisory Board member receives an annual basic remuneration of EUR 20,000.00. The Chair and Deputy Chair of the Supervisory Board receive higher remuneration in consideration of their increased organizational and administrative burdens. This amounts to EUR 50,000.00 for the Chair and EUR 30,000.00 for the Deputy Chair.

The company provides the members of the Supervisory Board with insurance coverage in the amount reasonable for carrying out the work of the Supervisory Board and pays the corresponding premiums. The company also reimburses each member of the Supervisory Board for any reasonable expenses incurred in the performance of their duties for which proof has been provided and for any value-added tax that applies to their remuneration.

The members of the Supervisory Board receive a purely fixed remuneration; variable remuneration that depends on the attainment of specific successes or targets is not provided. As such, the remuneration can only be aligned with the business strategy to a limited extent, and therefore has only a limited influence on the long-term performance of the company. However, First Sensor AG strongly believes that fixed remuneration is the most appropriate for the objective supervisory function of the Supervisory Board and its neutral advisory activities. The Supervisory Board can thus orient its decisions according to the benefit of the company and thus a long-term business strategy and sustainable development without pursuing other motives at the same time.