We boost our employees’ motivation and commitment with fair performance-related compensation. Collective wage agreements largely determine how most of our employees are paid, while many have performance-related pay and participate in the company’s success.

For example, a new compensation system was introduced at Corporate Center on January 1, 2007. Under this system, the target salary consists of a fixed and a variable compensation component. The compensation system is based on the success of the company and personal performance evaluations. For around 250 of our top executives, this also includes CR-related target agreements, like fulfilling climate protection tasks and aims relating to the outside perception of the companies CR performance. The target salary is reviewed annually as part of a structured process, which also includes an assessment of the extent to which the respective employee met his or her objectives.

In addition, E.ON employees can also acquire E.ON shares at favorable terms under the E.ON investment plan, which allows them to participate in the success of the company. In 2007, company subsidies for the Employee Stock Purchase Plan were reviewed in conjunction with the works council, resulting in a significant increase.

If E.ON does business in a country with a minimum wage stipulated by law, we always pay salaries that are above the minimum. E.ON Gaz Distributie pays its employees 35 percent more than the stipulated amount, E.ON U.S. 71 percent, E.ON Bulgaria 188 percent and E.ON Ruhrgas UK North Sea even pays 211 percent more than the national minimum wage. In Germany a minimum wage has yet to be agreed. However, unskilled E.ON workers at the lowest pay levels in Germany still receive seven percent more than in Luxembourg, the country with the highest minimum wage in Europe.