Participation in the Company’s Success - Bertelsmann SE & Co. KGaA

Information about the international media enterprise and it's corporate divisions RTL Group, Penguin Random House, Gruner + Jahr, Arvato; detailed information for journalists in the Bertelsmann SE & Co. KGaA's Press Center as well as everything about Corporate Responsibility activities at Bertelsmann.

Participation in the Company’s Success

The fair distribution of our company's profits is an integral part of our corporate culture. Profit participation was introduced at Bertelsmann in 1970, to reward employees for their contribution to the company's success. Reinhard Mohn introduced the concept at Bertelsmann to strengthen employee motivation and identification with his idea of "participation and partaking."

Since 2008 employee profit participation has been based on the Bertelsmann Value Added (BVA), the same performance index that determines the performance-based remuneration of management. In other words, management bonuses and profit-participation payments develop comparably. When Executive Board members and other executives are paid high bonuses in a good year, the employees also receive high profit-participation payments – and conversely, in a weaker year everyone receives a lower payment.

The profit-participation scheme principally includes all the German operations of the Group’s fully consolidated companies apart from RTL Group and Gruner + Jahr. These and companies with external shareholders have similar success and profit participation models adapted to local requirements.

In 2017, the Bertelsmann Group payed out €105 million from the 2016 profits, worldwide.