Performance-related remuneration for managers

Incentive programmes traditionally play an important role in the remuneration of Executive Board members, managers and other employees in the Lufthansa Group. Managers receive a two-stage, performance-related bonus in addition to their basic salary.

One component of this remuneration system is the LH-Bonus programme. It consists of a variable bonus relating to the reporting period. The amount is determined by the Company’s performance and the manager’s performance against personal targets. LH-Bonus 2011 was aligned even more closely with the Group’s performance and the target indicators were harmonised for Executive Board members and managers. For both categories, Group performance is measured by reference to the operating margin and the cumulative cash value added over three years (CVA, see chapter on “Value-based management and targets”). The perennial reference period reflects the aim of creating sustainable value.

Since 1997 we have also offered our managers the LH-Performance programme as a long-term component of variable remuneration. This annual programme rewards the sustainable increase in company value based on the performance of the shares in Deutsche Lufthansa AG.

It combines an obligatory personal investment by the participants in Lufthansa shares with the granting of appreciation rights. Lufthansa offers a discount on the personal investment. In return the shares are subject to a lock-up period until the end of the programme. The appreciation rights are made up of a performance and an outperformance option. A payment is made on the performance option at the end of the programme if the appreciation of the Lufthansa share over the entire duration exceeds a predetermined threshold, which is based on Lufthansa’s cost of equity. The outperformance option generates a payment at the end of the programme if the Lufthansa share has performed better over the course of the programme than a basket made up of the shares of the main European competitors.

A key feature of LH-Performance is the uniform programme structure for Executive Board members, managers and non-payscale employees. The duration of the programme was generally raised accordingly from three to four years from the 2011 edition on. More information on our share programmes is available at

Results “LH-Performance”


End of programme

as of 31.12.2011
in %

as of 31.12.2011
in %

LH-Performance 2011




LH-Performance 2010




LH-Performance 2009




LH-Performance 2008