Governance
On a solid foundation
Organisation
LHI’s corporate governance principles are shaped, among other things, by the relevant legal framework. LHI Leasing GmbH is a financial services institution regulated under the German Banking Act (KWG). LHI Kapitalverwaltungsgesellschaft mbH is an external capital management company regulated under the German Capital Investment Code (KAGB).
These companies therefore fulfil the minimum requirements for risk management (MaRisk) and risk management for capital management companies (KAMaRisk) as well as the minimum requirements for the compliance function and other duties of conduct, organisation and transparency (MaComp), which is reflected accordingly in the business organisation. Central elements of the legal requirements are a consistent separation of functions between deciding and controlling corporate units, right up to the management. The LHI risk management system extends across the company, the subsidiaries and all managed companies. The organisational structure includes the areas required by law, such as auditing, risk controlling and compliance.
Keeping an eye on risks
The concept of caution is an important guiding principle of our business policies. However, every entrepreneurial activity involves taking risks. Risks can arise at any point in a company. It is impossible to identify and quantify all potential risks in advance already. However, in order to minimise risks, LHI has formulated guidelines for a risk culture and implemented mechanisms that start at various points in the process chains.
We stick to the rules
Compliance
LHI has established a compliance function that fulfils the legal requirements. Different regulatory frameworks apply to LHI Leasing GmbH and LHI Kapitalverwaltungsgesellschaft mbH with the KWG, the KAGB and the WpIG. As soon as it becomes apparent that a legal regulation is changing, the specialist departments check whether and how LHI is affected by this and what needs to be done. The compliance officer accompanies this process.
This brings together the decentralised expertise on a wide range of compliance-relevant topics. Compliance-relevant matters are discussed once a quarter in the Compliance Committee. The organisation and functioning of the compliance function are described in a manual.
Appreciative in everything we do
The statutory employee rights are respected at all locations. A company suggestion scheme has been established. This also concerns issues of sustainability. Our employees are employed in full compliance with all human rights. In the case of service providers, we make sure that we are assured of payment of the minimum wage.
Fair and transparent
Remuneration structure
Remuneration policy is an important component of corporate policy. LHI’s aim is to take equal account of the interests of the company, the shareholders, the investors in LHI products and the employees with remuneration that is in line with the market and performance and to support the sustainable and positive development of LHI. LHI has a remuneration system that both fulfils regulatory requirements and promotes the responsible and risk-conscious behaviour of employees.
LHI’s remuneration system is therefore essentially based on the following fundamental principles:
- Basic remuneration in line with the market and function
- Variable remuneration dependent on overriding goals at LHI Group level
- Consistency with the business and risk strategy
- Transparency and traceability
- Measures to avoid conflicts of interest
- Sustainable safeguarding of the future economic performance and earning power of the LHI Group of companies.
The LHI Group’s remuneration system complies with all relevant regulatory requirements.