Employee remuneration based on transparent system
The HUGO BOSS Group’s remuneration system is designed to ensure that employees receive fair and transparent compensation and promotes a culture of performance and dedication. Remuneration is based on clearly documented job descriptions. Employees in Germany with collectively negotiated wage agreements are remunerated on the basis of the collective agreements of the Südwestdeutsche Bekleidungsindustrie (Southwest German Textile Industry). Personnel assigned to retail activities are remunerated in accordance with 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 stores is linked to the achievement of service standards and guidelines defined as standard throughout the Group. In addition, reaching targets set for specific retail indicators creates shared incentives for the employees of the individual stores. Employees who do not have collectively negotiated wage agreements receive a basic salary plus a bonus, of which half is linked to Group targets and half to the achievement of qualitative and quantitative personal goals. In addition to financial components, the Group targets also include sustainability-related elements which are measured on the basis of sustainability rankings. The remuneration system for executives on the two levels below the Managing Board also include long-term Group targets based on sales and operating earnings over a period of three years, thus offering long-term incentives. All employees share in the Group’s success through an annual employee bonus that is linked to the achievement of certain internally defined Group targets.
HUGO BOSS makes an important contribution to providing for its employees after retirement, offering them a wide range of company pension schemes. First, the Group takes out employer-funded direct insurance for all employees who have been with the Group for more than six months. In addition, it encourages employee-funded deferred compensation by providing an additional subsidy over and above that required under the collectively negotiated agreements.
In addition to the contractually defined salary components, employee benefits include a travel allowance and access to the art and cultural offerings sponsored by the Group.