Employee remuneration based on transparent system
The HUGO BOSS Group's remuneration system is designed to ensure the fair and transparent compensation of employees and promote a culture of performance and dedication. Remuneration is set by reference to clearly documented job descriptions and assessments. Employees in Germany with collectively bargained wage agreements are remunerated based on the collective agreement of the Südwestdeutsche Bekleidungsindustrie (Southwest German Textile Industry). Personnel assigned to retail activities are remunerated based on the collective agreement for the German retail industry. Employees in retail and distribution receive a fixed salary and a variable component that is tied to quantitative targets. For instance, the remuneration of employees in the Group's own retail business is tied to the achievement of service standards and guidelines for its own retail business defined uniformly throughout the Group. In addition, reaching targets set for specific retail indicators creates shared incentives for the employees of individual stores. Employees who do not have collectively bargained wage agreements receive a basic salary plus a bonus, half of which is linked to Company targets and the achievement of qualitative and quantitative personal goals. In 2013, the Company objectives related to the development of sales, the operating profit, the operating margin, inventories and net financial liabilities. In the past fiscal year, the company pension offering was reorganized and significantly expanded. For instance, the Group now concludes for all employees who have been with the Company for more than six months an employer-funded direct insurance. Apart from the statutory subsidies, the employer-funded deferred compensation is supplemented by an additional employer subsidy. HUGO BOSS thus makes an important contribution to providing for its employees after retirement.
Apart from the contractually defined salary components, employee benefits include a traveling allowance and discounts on HUGO BOSS products. In addition, they can take advantage of the art and cultural offering in connection with sponsorship activities.