Corporate | 18 December 2009 09:02
Muehlhan AG / Strategic Company Decision/Miscellaneous
18.12.2009
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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PRESS RELEASE
Muehlhan introduces new compensation system and reorganizes procurement
* Compensation to be based on sustainable company performance
* Transparent bonus policy
* Procurement platform for Central Europe
Hamburg, 18 December 2009 - The Muehlhan Group (Entry Standard; ISIN
DE000A0KD0F7) completed two major organizational changes at the end of
2009. With the beginning of 2010, new rules governing compensation of top
executives will go into effect. The new compensation system will align the
interests of the company, executives and shareholders with a sustainable
increase in the value of the company. In addition, the company has set up a
procurement platform that bundles purchases of consumables in Central
Europe and which can serve as a basis for global implementation.
Under the new compensation program, the value of the company becomes the
focus of the variable component of management compensation. In the future,
enterprise value will play a major role in assessing management's
attainment of objectives on a short-term basis and will simultaneously
serve as the benchmark for creating sustainable earnings performance. The
uniform, ongoing valuation of all business units guarantees maximum
transparency and comparability of management performance. Compensation of
top management will therefore be based both on the sustainable success of
the respective business unit and that of the Group as a whole. Payment
holding periods mean that a decrease in company value may even lead to
reductions in already existing compensation claims. On the other hand, the
management of local companies will also benefit from the international
growth of other subsidiaries worldwide.
The program was developed in cooperation with a university in Berlin even
before the public discussion about bonus payments began, in order to
promote the company's strategic focus on international growth. In addition,
the requirements recently promulgated by legislators and the German
Corporate Governance Code regarding the sustainability and transparency of
performance-based management compensation are being implemented.
Further, as part of our cost-cutting measures, procurement has been
reorganized for all companies in Central Europe. At the end of 2008, we
launched a project for strategic procurement which was implemented in the
second half of this year. The centerpiece of this project is an
Internet-based procurement platform that allows our subsidiaries to buy
consumables from selected suppliers. This has enabled us to reduce the
number of suppliers for Central Europe by around 90%. Muehlhan expects this
to yield annual savings of at least EUR 0.5 million.
Both steps should increase competitiveness further and are preparing the
company early on for the time following the economic crisis.
Thanks to the continued focus on high-growth business segments, such as
wind turbines and infrastructure programs, and on emerging markets, such as
the Middle East and China, Muehlhan expects to see not only a general
increase in business activity in 2010, but also a resulting improvement in
profitability.
About Muehlhan:
The Muehlhan Group is a leading world provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures. They include steel surfaces of
ships and of oil and gas rigs and platforms. The Muehlhan Group is also
active in the Industry Services segment, which, besides scaffolding for
marine and industry customers, includes surface protection for wind
turbines, chemical production plants, and fuel storage depots, steel
bridges, cranes, and machinery. The company's patented technology
brand-named μ-jet(R) guarantees especially high quality and efficiency in
the removal of old coatings and rust, particularly in the open sea.
Muehlhan was established in Hamburg in 1881. For 2008 the company with its
more than 2,000 employees around the world generated sales revenue of more
than EUR 206 million (IFRS). For further information visit
www.muehlhan.com
Press contact: Ties Kaiser c/o Muehlhan AG, Phone +49 40 752 71 156, email:
kaiser@muehlhan.com
18.12.2009 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg
Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations@muehlhan.com
Internet: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Listed: Freiverkehr in Berlin, München, Hamburg, Stuttgart; Entry
Standard in Frankfurt
End of News DGAP News-Service
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