Information pursuant to Section 7 of the InstitutsVergV

1. Introduction

Pursuant to Section 7 of the directive governing the supervisory requirements for compensation systems of institutes (InstitutsVergV) dated 6 October 2010, COREALCREDIT BANK AG publishes information about the bank’s compensation system.

2. Compensation System

a. General Information

With regard to tariff employees, the bank‘s compensation system is based on the master collective bargaining agreement for the private banking business and public banks. Non-tariff employees receive an individually negotiated, customary fixed annual salary.

b. Variable Compensation Components

The compensation of all employees also includes a variable salary component. For tariff employees, the target bonus is based on monthly salary. The deciding factor here is the tariff salary in accordance with the respectively valid salary table of the salary tariff agreement for private and public banks. With regard to non-tariff employees, the target bonus is a percentage of the annual fixed salary, the ceiling of which is fixed. The percentage depends on the area of responsibility of the department where the employee works (sales, close to market, and internal departments).

Whether, and to what amount, the target bonus is reached, depends on three components:

• Company component,
• Department component, and
• Individual component.

The percentage combination of the components also depends on the department in which the employee works.

At the beginning of each year, target meetings are held to establish targets for the new year, as well as determine to what extent the targets of the previous year were reached. In cases of particularly excellent performance, a target achievement of more than 100% can be determined. An achievement level of more than 150%, and thus exceeding the target bonus by more than 50%, is not possible for either tariff employees or non-tariff employees. The target bonus for the past year is paid together with the March salary of the following year.

The compensation for Executive Board members and the respective compensation structure is determined by the Supervisory Board in compliance with the applicable risk management requirements (MaRisk). The Supervisory Board will provide information at least once a year, on the result of the appropriateness review of the existing compensation system.

3. Quantification

For the 2011 business year, 171 tariff and non-tariff employees (accounting date: 31 December 2011) receive a total compensation in the amount of approximately EUR 14.5 million. The variable component of this total amounted to approximately 3.2 million (sum) and the base compensation approximately 11.3 million (sum).