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      Remuneration and Provision for Retirement

      Remuneration and Provision for Retirement

      The company’s goal is to align the value creation and success of Continental with performance-based remuneration for employees. Continental also helps employees with additional pension provisions that they fund themselves.

      Performance-based remuneration and value-sharing bonuses

      With regard to remuneration, we apply the principle of good pay in line with the market in return for good performance. In this context, variable remuneration components play an increasingly important role – and not just for the top management.

      We offer our employees attractive remuneration systems. Throughout the corporation middle and top management share in the company’s profits by means of annual variable remuneration. The variable component of the manager’s salary is based on a scale structure and increases in accordance with his or her position ranking. Bonuses are determined by three parameters:

      1.     The value created year-on-year by the manager for his or her business unit
      2.     The return on capital employed
      3.     The attainment of individual goals

      In addition, the Executive Board sets a strategic corporate goal for managers.

      The profit sharing program, which has been in place since 2011, represents a central component of the company benefits. It is how we directly involve our employees worldwide in the success of the company by awarding them with a bonus. The amount depends on the absolute value contribution of the Continental Corporation in the respective fiscal year.

      Transparent pension system

      The focus on defined contribution plans lies at the heart of the international pension strategy of Continental, insofar as this is possible under the respective country-specific laws. It is an essential precondition for offering both employees and the company a sustainable and transparent pension system. With company subsidies for employee contributions, we promote the personal contribution of our employees. We also encourage our employees to pay into a deferred compensation scheme, whereby they relinquish part of their earned income. Continental then invests this in the company pension scheme.

      In addition, Continental offers a long-term account model to management personnel in all affiliated German companies, as well as to all employees who are covered by the collective agreement of the chemical industry in Germany. This model offers both the option of a flexible transition to a retirement pension and the possibility of leave for qualification measures, parental leave and care periods.

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