Management strategy – value-oriented leadership

To achieve its strategic goals and increase its enterprise value, VP Bank uses “key performance indicators” as a management instrument. “Economic profit” is the single most important reading for the success of value-oriented leadership. It expresses the total net income of VP Bank Group after deduction of the cost of capital. 

The Bank’s executives are supported by a management information system which, in addition to quantitative value drivers, also takes into account qualitative aspects. By combining strategic controlling with operative controlling, it can be ensured that the Group’s medium-term goals are being properly pursued via corresponding measures at the operating level. Broadly based, resolutely conducted corporate governance also represents a reliable guideline for all of the Bank’s management personnel. 

With its “Long-Term Incentive Plan” (LTI), VP Bank has a compensation system that bonds managers with the Bank and is tied to its sustained success over the long run. As a result, managers can enjoy the fruits of the company’s development as well as benefit from the appreciation of its stock price. The degree of their participation varies according to the actual success of VP Bank Group (see the “Corporate governance” section, and the “Compensation report”.).