The E.ON UK Executive Board has a collective set of objectives relating to financial performance, health and safety performance, carbon emission targets and employees. The compensation package for our senior executives has a clear link to this performance. In some cases, compensation is also linked to the performance of E.ON AG. There are three incentive schemes in place:

• Short-term incentive scheme: a bonus scheme for the Board and senior managers. Around 240 of our employees are eligible for this. The bonus is linked to our financial performance as well as the performance of the business unit and the individual.
• Medium-term incentive scheme: around 50 of our senior managers are eligible for this scheme. It is based exclusively on our performance.
• Long-term incentive scheme: the senior executive team (around 30 in total) are eligible for this scheme, which is a phantom share option scheme based solely on the performance of E.ON AG.