AIRBUS - 2019 Financial Statements

2.6 Employees Costs and Benefits Notes to the IFRS Consolidated Financial Statements /

33. Remuneration

33.1 Remuneration – Executive Committee The Company’s key management personnel consists of Members of the Executive Committee and Non-Executive Board Members. The Chief Executive Officer (“CEO”), who chairs the Executive Committee, is the sole Executive Board Member. The annual remuneration and related compensation costs of the key management personnel as expensed in the respective year can be summarised as follows:

2019

2018

(In € million)

Executive Committee, including Executive Board Member Salaries and other short-term benefits (including bonuses)

16.5

18.7

1.1

4.7

Post-employment benefit costs

10.5

5.3

Share-based remuneration (“LTIP award”, including associated hedge result)

(0.4)

8.6

Termination benefits (1)

Other benefits

0.4

0.5

4.5

8.7

Social charges (2)

Non-Executive Board Members Short-term benefits (including social charges)

2.4

2

Total expense recognised

35.0

48.5

(1) 2019 Termination benefits include the adjustment of the estimated amount accounted for in 2018 based on last information available and applicable law. (2) Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges.

Salaries and Other Short-Term Benefits (Including Bonuses) The amount of bonuses is based on estimated performance achievement as at the balance sheet date and difference between previous year estimation and actual pay-out in the current year. Outstanding short-term benefits (bonuses) at year-end 2019 for Executive Committee Members based on estimated performance achievement at year-end was €7.5 million (2018: €9.3 million). Post-Employment and Other Long-Term Benefits The post-employment and other long-term benefits defined obligation for the Executive Committee, including the CEO, amounted to € 29.8 million at 31 December 2019 (2018: €61.6 million). The disclosed post-employment and other long-term benefits reflect the total outstanding balance for all Executive Committee Members in charge at the end of the respective balance sheet date. In 2019, the defined benefit plan in France has been frozen, leading to a remeasurement of past service cost recognised as a profit in the Profit & Loss which mainly explains the decrease in the Post-employment benefits costs between 2018 (€ 4.7 million) and 2019 (€ 1.1 million). Share-Based Remuneration (“LTIP Award”) The share-based payment expenses result from not yet forfeited units granted to the Executive Committee Members under the Company’s LTIP which are remeasured to fair value as far as they are cash-settled. In 2019, the Members of the Executive Committee were granted 30,168 Performance Units (2018: 18,554) and 30,168 Performance Shares (2018: 21,359) for LTIP 2019, the respective fair value of these Performance Units and Shares at the respective grant dates was €7.7 million (2018: €3.8 million). As of 31 December 2019, provisions of €15.4 million (2018: €9.4 million) relating to LTIP have been recognised. The total number of outstanding Performance and Restricted Units amounted to 134,398 at 31 December 2019 (2018: 189,260), granted to the current Members of the Executive Committee. Until and including the plan 2015, based on the intention of the Board of Directors to increase the long-term commitment of Executive Committee Members to the success of the Company, the Board has authorised the Executive Committee Members to opt for partial conversion of the otherwise cash-settled LTIPs into share-settled plans at each grant date of any new LTIP, requiring a minimum conversion rate into equity settlement of 25% of total granted Performance Units. At the conversion date, each Executive Committee Member individually determined the split of equity and cash settlement for the formerly granted LTIP. After overall performance assessment of each of the plans, the vesting dates as determined at the initial grant date apply to all cash-settled Performance Units. However, units converted into equity settlement only vest at the last of the vesting dates of the respective plan.

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Airbus / Financial Statements 2019