From employees to co-owners

In a market-based economy, the objective of commercial enterprises is to generate value for all stakeholders, in the case of a publicly listed company, that includes shareholders. Among our shareholders is a group that makes me very proud: Over half of our more than 70,000 team members worldwide are actively involved in our employee share programs. They directly participate in our stock market performance, which fosters a genuine sense of ownership culture at Siemens Healthineers. Our colleagues embody the true meaning and spirit of working for their own company. We believe that providing a stake in the company's performance is one way to instill an even deeper sense of engagement and dedication.

One of our core values is expressed quite literally in our employee share programs: We own it. This value perfectly conveys the principles of assuming responsibility, fostering mutual support, and continuously striving for self-improvement. I am convinced that the leap from employee to co-owner impacts people’s mindset and behavior – and science has also demonstrated that:

• There is a positive correlation between employee share ownership and their motivation.
• Company-wide performance and motivation both improve in direct proportion to the number of participants in employee share programs.

At Siemens Healthineers, we have seen these benefits in action: increased productivity, higher motivation, greater entrepreneurial initiative, and lower staff turnover. These changes can be witnessed in all areas of our company. Colleagues who own shares are more inclined to proactively produce excellent results, drive innovation, consider the needs of our customers and their patients, act sustainably, and make a personal contribution to the company’s success. After all, they own it.

We are offering our share programs in more than 50 countries covering more than 95 percent of employees worldwide. In a few countries, the main reasons for not offering the employee share programs are local legal or tax implications. In our all-employee plan design, by holding their shares for at least three years, they receive one additional share free of charge for every three shares owned (“matching shares”). An impressive majority of over 75 percent of participants choose to retain their shares for several years after receiving the matching shares, which demonstrates their long-term investment in our company.

In addition to the benefits for individual contributors and for our company, employee share ownership also benefits society, because it contributes to retirement security.?Our share programs are not intended to replace or compete with other retirement plans; but can be a supplement to private and occupational pension provisions. Our employee share programs is an addition to our compensation package, eventually increasing our attractiveness as an employer.

A win-win situation

Another positive effect of employee share ownership: it enables colleagues who would otherwise refrain from investing in capital markets, for example, due to inexperience in acquiring and managing shares. Our team can invest in a company they trust and know very well. For our company, they are a welcome addition to our investor base because they boost diversity among shareholders, and they are especially loyal. All things considered; it is a win-win situation for everyone.

Of course, investing in shares always entails risks. The performance of shares and stock markets is unpredictable, and past share price performance should not be regarded as a reliable indicator of future outcomes. Nevertheless, it is worth noting a positive example from our history: Those who have participated in our employee share programs since our company's IPO in 2018 have witnessed a significant increase in share prices along with the option to enjoy attractive financial gains. It is gratifying to know we own it and we win together.

Our #TeamHealthineers strives to improve the quality of healthcare for people around the world, and that is a challenging, meaningful, and demanding task. A highly motivated team that operates with a strong sense of personal responsibility is crucial to fulfilling our purpose:

We pioneer breakthroughs in healthcare. For everyone. Everywhere. Sustainably.