Financial Statements 2023

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

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:

2023

(In €)

2022

Base salary

1,485,000 1,485,000

Annual variable pay

1,945,350 2,008,800

Post ‑ employment benefit costs

(1,049,054)

1,385,222

(1)

Share ‑ based remuneration (“LTIP award”)

1,997,522 1,082,668

Termination benefits

0

0

Other benefits

34,969

32,734

(2)

Social charges

1,312,061 1,357,922

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”). (1) Social charges depend 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. (2)

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. Post ‑ Employment Benefit Costs Post ‑ employment benefit costs relate to the aggregated amount of current service and interest costs for defined benefit plan and company cost for contributions base plans. Following the Board decision approved in the AGM 2020, the CEO pension rights are accrued through a defined contributions plan from 1 January 2020, which coexists with the former defined benefit pension plan. The accrued pension rights under the former defined benefit plan have been frozen at the end of 2019 and remain unvested until the retirement date of the CEO. The pension rights arising from the Company’s defined contribution plan are deducted from the frozen defined pension rights. As of 31 December 2023, the defined benefit obligation related to the frozen defined benefit commitment amounts to €3,875,518 (2022: €6,895,263). This obligation has been accrued in the 2023 Consolidated Financial Statements and will be updated annually up to the retirement date of the CEO considering additional service cost and future changes on economic assumptions or other factors like salary increase. The decrease in the defined benefit obligation is mainly due to the change in retirement age following the pension reform in France in 2023. This change has been considered as a plan amendment and leads to the recognition of a profit in EBIT. For the fiscal year 2023, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented a net profit of €1,049,054 composed by an expense of €1,404,951 and the effect of the French pension reform leading to a release of provision of €2,454,006 (2022: expense of €1,385,222). The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for among social charges.

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Airbus

Financial Statements 2023