Remuneration

Our Global Salary Management System (GSMS) sets employees' salaries in a clear, understandable and measurable way. It relates to performance evaluation and uses a clearly defined system for setting salaries in line with market requirements and performance levels. Managers and the HR department can evaluate where each employee currently is within the system based on his/her current salary and where he/she should be.

The adidas Group also offers several attractive variable compensation components:

• Pay for Performance bonus programme/Profit Sharing: More than 80% of all employees receive a variable salary component with an average of 20% of their remuneration linked directly to individual and/or Group performance.
• Long-Term Incentive Programmes (LTIP): These include brand- or business-specific three-year plans for senior managers that are based on the achievement of financial as well as compliance targets.
• Management Share Option Plan (MSOP): Beneficiaries of the MSOP (members of the Executive Board and senior management) may exercise stock options granted to them in five tranches since 1999 if at least one of two performance criteria is met.
• Other benefits: These include our 401-K Pension Plans in the USA and the Pension Plans for our employees in Germany. In 2007, 1,396 employees participated in the latter, which represents an increase of 20.9% compared to the previous year.

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