The objective of the Global Cash Performance Units (CPU) Plan is to provide top management additional motivation to achieve Henkel’s long-term business targets. As each Cash Performance Unit (CPU) equals the value of one Henkel preferred share, the interests of top management are combined with those of the shareholders.

CPU Plan Top Management (excl. Management Board)

• Eligible for participation are managers only who belong to the eligible Management Circle and who are not under notice during that performance period of three years.
• Eligible members of the top management get CPUs within each yearly introduced tranche.
• The number of CPUs granted depends on achieving set business target figures during the performance period of three years.
• On expiry of the performance period, the specific number and the value of the CPUs is determined and the corresponding amount is paid in cash.
• The value of a CPU in each case is the average price of the Henkel preferred share during the 20 stock exchange trading days after the Annual General Meeting following the end of the performance period.
• In case of exceptional increases in the share price, there is a ceiling value (cap).
• The total value of CPUs granted to senior executive personnel is remeasured at each balance sheet date and treated as a payroll cost over the performance period.

CPU Plan Management Board

• Each eligible member of the Management Board is entitled to the monetary value of a total of up to 10,800 preferred shares (CPUs) for each fiscal year (= tranche).
• The yearly introduced tranches run over a performance period of three years.
• The number and value of the CPUs is dependent on the increase in share price over the performance period of three years and on the increase in earnings per Henkel preferred share (EPS).
• On expiry of the performance period, the specific number and the value of the CPUs is determined and the corresponding amount is paid in cash.
• Each member of the Management Board participating in the tranche must personally invest in Henkel preferred shares to the value of 25 percent of the tranche gross paiout  and place these in a blocked custody account with a five-year drawing restriction.
• If there is an absolute increase in share price during the performance period of at least 15 percent, 21 percent or 30 percent, each participant in the plan receives the monetary value equivalent to 1,800, 3,600 or 5,400 shares respectively.  The same is valid for earnings per preferred share (EPS).
• To calculate the absolute increase in the share price, the average price in January of the year of issue of a tranche is compared to the average price in January of the third fiscal year following the year of issue.
• To calculate the increase in earnings per preferred share, the earnings per preferred share of the fiscal year prior to the year of issue is compared with the earnings per preferred share of the second fiscal year after the year of issue.
• The amounts included in the calculation of the increase are in each case the earnings per preferred share as disclosed in the consolidated financial statements of the relevant fiscal years, adjusted for exceptional items. The financial statements must have been approved and an unqualified auditors’ opinion issued thereon.
• The monetary value of a share is equivalent to the average price of the Henkel preferred share in January of the third fiscal year following the year of issue.
• In case of exceptional increases in the share price, there is a ceiling value (cap).