Financial Statements 2021

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

Share-Based Remuneration (“LTIP Award”) The share-based payment expenses result from not yet forfeited units and shares granted to the Executive Committee Members under the Company’s LTIP which are re-measured at fair value according to the methodology described in Note 32. In 2021, the Members of the Executive Committee were granted 66,575 Performance Shares (2020: 50,814 Performance Shares and 50,814 Performance Units). For LTIP 2021, the respective fair value of these Shares at grant date was €6.5 million (2020: €7.6 million for both Performance Shares and Performance Units). As of 31 December 2021, provisions of €5.4 million (2020: €5.0 million) relating to LTIP have been recognised. The total number of outstanding Performance Units and Performance Shares granted to the current Members of the Executive Committee amounted to 91,180 and 152,967 respectively at 31 December 2021 (2020: 133,966 Performance Units and 133,966 Performance Shares). In the case of contract termination, the Executive Committee Members are entitled to an indemnity equal to 1.5 times the Total Target Remuneration (defined as Base Salary and target Annual Variable Remuneration) with respect to applicable local legal requirements, if any. This will not apply if the Executive Committee mandate is terminated for cause, in case of dismissal, if the Executive Committee Member resigns or has reached retirement age. The Executive Committee Members’ contract includes a non-compete clause which applies for a minimum of one year and can be extended at the Company’s initiative for a further year. The Board of Directors has the discretion to waive or invoke the extension of the non-compete clause when legally or contractually possible. The compensation for each year that the non-compete clause applies is equal to 50% of the last Total Annual Remuneration (defined as Base Salary and Annual Variable Remuneration most recently paid) with respect to applicable local legal requirements, if any. Past LTIP awards may be maintained in full or prorated, in such cases as in case of retirement or if a mandate is not renewed by the Company without cause, pro rata being based on the presence in the Company during performance periods. The vesting of past LTIP awards follows the plans’ rules and regulations and is not accelerated in any case. LTIP awards are forfeited for Executives Other Benefits Other benefits include expenses for Executive Committee Members’ medical, death and disability coverage, company car and other usual facilities as applicable. 33.2 Remuneration – CEO The annual remuneration and related compensation costs of the CEO as expensed in the respective year can be summarised as follows: Termination Benefits The following benefits apply to Executive Committee Members, except the CEO. who leave the Company on their own initiative, but this is subject to review by the Board of Directors. The termination benefits include assumptions about all effective, known or planned terminations to date.

2

2021

2020

(In €)

Base salary

1,350,000

1,350,000

2,247,750

1,357,262

Annual variable pay

1,138,794

1,179,332

Post-employment benefit costs

822,906

206,337

Share-based remuneration (“LTIP award”) (1)

0

0

Termination benefits

32,479

33,790

Other benefits

1,089,385

1,102,840

Social charges (2)

(1) Expense related to share-based payment plans as recognised in the annual period (service period) including the result from the hedge of cash-settled share-based payment (see “Note 32: Share-Based Payment”). (2) Social charges depends on the applicable regulation to the CEO. In France, social charges comprise benefits accrued through mandatory collective and state plans such as pension, death and disability or medical coverage. Annual Variable Pay The annual variable pay is based on estimated performance achievement as at the balance sheet date and difference between the previous year’s estimation and actual pay-out in the current year.

55

Airbus / Financial Statements 2021