• Base Salary is a fixed pay component determined by
  the requirements of the job local market conditions, individual
  performance, skills and potential for development.


• Short-Term Incentive is based on an annual
  incentive plan which applies to all managers. The purpose of this plan
  is to acknowledge and reward the achievement of yearly target
  agreements.


• Long-Term Incentive is a reward for our core management team for the long-term creation of shareholder value.

The Henkel “Target Dialogue”

Henkel has implemented a globally consistent system of
performance-related remuneration for its managerial staff. The general
Target Dialogue philosophy is to strengthen personal performance through
targets which can be individually influenced and measured in numbers.

argets for the Target Dialogue are set using a cascading approach of
corporate, team and individual targets. Once corporate targets for the
entire company are set, they form the basis for setting team targets.
Individual targets should be set so that they support the team and group
targets.

All targets in the Target Dialogue should be consistent from Group to
Team to Individual. They should be ambitious, quantifiable and fair,
and monitored during the whole year. We regard accurate target setting
as a key management responsibility, linking individual achievement
incentives with Henkel’s strategic focus.