Declaration of Compliance

Declaration of Confirmity
of the Management Board and the Supervisory Board
of Vonovia SE
with the Recommendations of the German Corporate Governance Code
pursuant to Section 161 of the German Stock Corporation Act (AktG)

 

The Management Board and the Supervisory Board of Vonovia SE declare

that, since the last declaration of conformity was made in November 2019, the company has complied with the recommendations made by the Government Commission on the German Corporate Governance Code in the version published in the official section of the federal gazette by the German Federal Ministry of Justice on February 7, 2017 (GCGC 2017).

In the future, the company will comply with the recommendations set out in the German Corporate Governance Code in the version published on March 20, 2020 (GCGC 2020), with the following restrictions.

Pursuant to G.13 sentence 1 GCGC 2020, any payments made to a Management Board member due to early termination of their Management Board activity shall not exceed twice the annual remuneration (severance pay cap) and shall not constitute remuneration for more than the remaining term of the employment contract. No. 4.2.3 (5) GCGC 2017 recommended that benefit commitments made in connection with the early termination of a Management Board member’s activity due to a change of control did not exceed 150% of the severance cap. The GCGC 2020 no longer contains any explicit recommendation for benefits resulting from a change of control. It is unclear whether the general recommendation made in G.13 sentence 1 GCGC 2020 on the severance amount applies in this regard. The existing Management Board employment contracts already largely comply with the recommendation set out in G.13 sentence 1 GCGC 2020. The Supervisory Board reserves the right, however, when contracts are extended or future contracts are concluded, to reach agreements that are consistent with the recommendation set out in No. 4.2.3 (5) GCGC 2017 to take account of interests relating to vested rights and the particular circumstances of the individual case. As a result, we declare as a precaution that the recommendation made in G.13 sentence 1 GCGC 2020 is not complied with.

Pursuant to G.13 sentence 2 GCGC 2020, if post-contractual non-competition clauses apply, the severance payments shall be taken into account in the calculation of any compensation payments. Even before the GCGC 2020 entered into force, post-contractual non-competition clauses were agreed with individual Management Board members. These do not provide for severance payments to be taken into account in the calculation of any compensation payments. When contracts are extended or future contracts are concluded, the Supervisory Board reserves the right, in the interests of flexibility or for reasons relating to vested rights, to make decisions on agreeing to take severance payments into account in the calculation of any compensation payments on a case-by-case basis. As a result, we declare that the recommendation made in G.13 sentence 2 GCGC 2020 is not complied with.

Bochum, November 30, 2020

For the Management Board
Rolf Buch
Chairman of the Management Board

For the Supervisory Board
Jürgen Fitschen
Chairman of the Supervisory Board

Corporate Governance File