HUGO BOSS understands that fair pay is an essential aspect of the core of human resources. Through a fair, transparent and competitive remuneration structure, we want to ensure equal opportunities and avoid discrimination, as well as increase the competitiveness of the company. Furthermore, we aim to strengthen the motivation of our employees and their loyalty to the company.
Since the beginning of 2021, all positions worldwide are being evaluated on the basis of standardized criteria and clustered into so-called ‘grades’. Job-specific qualifications and responsibilities form the basis of our grading system. This assessment enables compensation to be graded in line with market-based salary bands, irrespective of gender or other diversity characteristics. This principle is also set out in the HUGO BOSS Code of Conduct.
In individual cases, specific market conditions, experience (employment biography), and performance are also key factors that play a role in defining individual remuneration.
HUGO BOSS is committed to a continuous improvement process to ensure fair pay. For example, we have published a global Fair Pay Commitment and gradually initiate corresponding measures worldwide. For example, HUGO BOSS AG introduced Equal Pay metrics in its annual salary round in 2022. This enables managers to conciously decide on compensation based on transparency.
The compensation system at HUGO BOSS comprises fixed and variable salary components, bonuses above the standard pay scale, benefits in kind, and other benefits. It takes into account collective bargaining agreements and includes national and regional benchmarks. Variable remuneration components relate to the achievement of targets within the Group, in the local entities and, in the retail environment, as well as to team performance and individual performance.
We analyze gender-specific compensation differences among employees in comparable positions based on our grading system. This involves comparing the average annual compensation amounts of women and men, on a full-time basis within the individual grades. There is no correction for biographical factors that influence individual salaries.