The comparatively sharp rise is due to a payout from Siemens Profit Sharing, which was established in 2015 in order to enable all eligible employees below management to participate in the company's success. Siemens Profit Sharing enables employees to receive free shares following particularly successful fiscal years. Participation requires no personal investment on the part of the employees. A total of €400 million had been paid into the Profit Sharing Pool since 2015. For the first time, this sum has now been distributed to the eligible employees in 102 countries, primarily in the form of free shares.
"We want to enable all our employees to participate directly in Siemens' success and sustainable development. By allowing all Siemens employees company-wide to participate in the company's success, we're setting standards for sustainable management in this area, too. I'm happy and proud that more than 300,000 employees are now also co-owners of our company. Shareholding is an integral part of our Ownership Culture," said Joe Kaeser, President and CEO of Siemens AG.
"Unfortunately, this culture of enabling employees to own a part of their company is still rather weak in Germany, particularly in comparison with other European countries," added Kaeser. "This is partly due to a very low tax exemption. Here, lawmakers have a great opportunity to realize appealing and sustainable forms of retirement planning and enable Germany to advance and become a pioneer in Europe. Better framework conditions and incentives must be implemented so that employee equity participation can become established as a key pillar for the long-term creation of wealth and for demographically appropriate retirement planning."
In addition to Profit Sharing, Siemens' global Share Matching Program forms the core of the company's equity culture and is one of the world's largest employee equity programs. This share plan has been implemented in annual tranches since 2008.
This press release, infographics and further informational materials on this topic are available at www.siemens.com/press/equityculture