The Executive Board and Supervisory Board declare that the recommendations of the "Government Commission German Corporate Governance Code" (version of Dece mber 16, 2019) published by the Federal Ministry of Justice and Consumer Protection in the official section of the Federal Gazette on March 20, 2020, have been fully complied with since the last declaration was issued on December 15, 2020.
TheExecutive Board and Supervisory Board further declare that the recommendations of the "Government Commission on the German Corporate Governance Code" (ve rs io n dated December 16, 2019) published by the Federal Ministry of Justice and Consumer Protection in the official section of the Federal Gazette on March 20, 2020, will be complied with in full with the exception of the recommendation G.8 of this Code.
According to G.8 of the German Corporate Governance Code a subsequent change to the target values or the comparison parameters regarding the compensation of the Executive Board shall be excluded. In March 2021, the Supervisory Board decided to offset special effects in the network business for the determination and definition of the target attainment for the bonus relating to the business year 2020 (Short Term lncentive). In the business year 2020 the transport volumes in E.O N's electricity and gas networks remained noticeably under the forecast values with an extraordinary deviation caused in pa rt ic ular by the Covid-19 pandemic and the extraordinary mild winter. This extraordinary deviation resulted in a red uced adjusted net income in the business year 2020 and thus reduced the attain me nt of the company targets, which is essential for the determination of the bonus for the Executive Boa rd for 2020. However, the regulatory mechanisms relevant for E.ON in t he net w o rk business cause the lass es to be compensated in the following years, without the additional income having an increasing effect on the bonus of the Executive Board in these years. In the view of the Supervisory Board, not taking the se regulatory effects into account would lead to an economically unjustified disadvantage for the Executive Board. On the other hand, negative effects such as from the sales business, which will not be financially compensated in the following years, continue to affect the attainment of the company targets and thus the bonus of the Executive Board without restrictions.
In the new compensation system submitted to the 2021 Annual Shareholders Meeting for approval, the Supervisory Board has provided, that it can take into account corresponding effects in the network business without economic impact for E.ON if certain fixed thresholds are reached.
Essen, March 23, 2021
For the Supervisory Board of E.ON SE:
Dr. Karl-Ludwig Kley
(Chairman of the Supervisory Board of E.ON SE)
For the Board of Management of E.ON SE:
Dr. Johannes Teyssen
(Chairman of the Board of Management of E.ON SE)