Corporate Governance and Corporate Management

At Leifheit, the term Corporate Governance stands for responsible corporate management and control geared towards creating sustainable value creation. To us, trusting cooperation between the Board of Management and the Supervisory Board, efficient internal and external control mechanisms, and a high level of transparency in corporate communications are matters of central importance. This way, we hope to secure the long-term confidence of our stakeholders in our company.

We give corporate governance a high priority and are guided by the recommendations of the German Corporate Governance Code (DCGK).

Leifheit largely complies with this evaluation criteria for good corporate governance. The deviations from the code are published in the statutory declarations of compliance.

Our compliance management system (CMS) includes basic guidelines and measures aimed at ensuring behaviour in line with the regulations at the company. It should assist our employees in observing the binding laws and regulations that apply to their work, along with recognised standards, recommendations and our own guidelines.

Behaviour in line with the regulations is both a key basic principle for Leifheit and the goal of commercially responsible conduct. The Board of Management and the management team of Leifheit are committed to compliance as a leadership duty. Operational responsibility (compliance officer) lies with the HR/Legal/IP division.

Our CMS includes guidelines and measures that reduce compliance risks and prevent violation of regulations and laws. Its principles and standards of conduct have been in place for years and are part of the day-to-day business routine. All compliance guidelines are available to Leifheit Group employees in at least German and English.

The key guidelines are also available in Czech, French and Chinese language versions.

As part of their duty to set an example for others, Leifheit managers are instructed to impart and model the compliance policies for their employees. Managers are responsible for ensuring that our guidelines are followed. A concept that provides our employees with regular training on our compliance principles through online e-learning modules was also developed. In 2019, approximately 70% of employees at the German locations completed compliance training. We will continue to intensify our training an communication measures in the future.

You will find further information with regards to Compliance Management at our Sustainability report.

We have established a whistle-blower system to give our employees and third parties the opportunity to safely pass along tip-offs to an ombudsman if they suspect or have evidence of potential legal violations at the company. An online communication platform, Integrity Line, has been available to whistle-blowers, along with the option to submit reports to the ombudsman in person.

Compliance violations are not tolerated, and all indications of misconduct are followed up.

The declaration of corporate management pursuant to sections 289f / 315d German commercial code (HGB) includes the declaration of conformity regarding the German corporate governance code, the website address for accessing the remuneration report, information about the remuneration system for the Board of Management and the remuneration of the Supervisory Board, information about relevant corporate management practices and a description of the work methods of the Board of Management and the Supervisory Board, as well as the composition and work methods of their committees, information on the defined targets according to the German law on the equal participation of women and men in management positions and the description of the diversity concept.

The remuneration system for the Board of Management – presented by the Supervisory Board of Leifheit AG, based on the recommendation of its Personnel Committee – was approved by the Annual General Meeting on 25 May 2022.

The remuneration of the members of the Supervisory Board is defined in art. 12 of the articles of incorporation of Leifheit AG and by resolution of the Annual General Meeting on 29 May 2019 under agenda item 9 (resolution on a long-term variable remuneration for the Supervisory Board). The Annual General Meeting on 2 June 2021 confirmed art. 12 para. 1 to 7 and para. 9 to 11 of the articles of incorporation as well as the resolution of the Annual General Meeting on 29 May 2019 under agenda item 9 and reworded art. 12 para. 8 of the articles of incorporation with effect from 1 January 2020.

The Board of Management and Supervisory Board of Leifheit AG report clearly and transparently on the remuneration granted and owed to the members of the Board of Management and the Supervisory Board in accordance with section 162 of the German stock corporation act (AktG). The remuneration report was audited by the auditor. The audit opinion can be found at the end of the report. This remuneration report for financial year 2023 will be presented to the Annual General Meeting for approval on 29 May 2024.

The German Stock Corporation Act dictates articles of incorporation for public limited companies. Leifheit AG would like to inform you of the current status of its articles of incorporation in accordance with the resolutions of the Annual General Meeting on 7 June 2023.

Respecting human rights is a fundamental value for companies that operate with integrity. Raw materials, semi-finished and finished goods are traded on globalised markets. This also poses a risk for Leifheit in the case where suppliers fail to comply with the principles of sustainable company management. Our declared aim is to ensure the acceptance and implementation of high social and environmental standards in our supply chain.