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. Clearly documented job descriptions and assessments are the basis for setting remuneration. Employees in Germany with collectively bargained wage agreements are remunerated on the basis of the collective agreement 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 tied to the achievement of service standards and guidelines defined uniformly throughout the Group. In addition, targets set for specific retail indicators create 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 Group targets and the achievement of qualitative and quantitative personal objectives. The Group targets are based on trends in sales, operating profit, the operating margin and trade net working capital as a percentage of sales. In 2014, sustainability-related criteria were also included in employee bonus agreements for the first time. Sustainability
HUGO BOSS has a comprehensive company pension plan. For instance, the Group takes out employer-funded direct insurance for all employees who have been with the Group for more than six months. Apart from the statutory subsidies, the employer-funded deferred compensation is supplemented by an additional employer subsidy. In this way, HUGO BOSS makes an important contribution to providing for its employees after retirement.
In addition to the contractually defined salary components, employee benefits include a traveling allowance and discounts on HUGO BOSS products. They can also take advantage of the art and cultural offerings in connection with sponsorship activities.