» The performance-related component, which comprises the largest portion of Executive Board compensation, consists of a Performance Bonus as well as a bonus paid on the basis of the Long-Term Incentive Plan. Both bonus systems are designed to provide a direct incentive for our Executive Board members to achieve defined targets and to support sustainable value-oriented management.
› The amount of the Performance Bonus is linked to the fixed annual salary and depends on the individual performance of the respective Executive Board member as well as on the Group’s results. The Performance Bonus is payable at the end of each year upon determination of target achievement.
› The Long-Term Incentive Plan 2006/2008 (LTIP Bonus 2006/2008) is the second component of Executive Board variable compensation. Its payout depends upon the attainment of certain cumulative earnings improvements (basis: income before taxes – IBT) during the three-year period from 2006 to 2008. If targets are met, payment is due following the adoption of the consolidated financial statements for the period ending December 31, 2008.
» The share-based component is comprised of compensation through the Management Share Option Plan (MSOP), which is calculated on the basis of a performance discount consisting of an absolute and a relative performance component. Option rights, which were issued in several tranches under the share option plan adopted by the 1999 Annual General Meeting, are exercisable over a period of five years following a two-year vesting period, provided that at least one of the two performance targets, i.e. absolute performance and relative performance, has been attained (see Note 33). Executive Board members were last granted options under the Management Share Option Plan (MSOP) in August 2002. No new share option plan has been proposed to the Annual General Meeting.
Executive Board Members' Total Compensation in 2006 € in thousands
| Non-performance- related component |
Performance- related component |
Share-based |
Total | |||
| Fixed salary |
Fringe benefits |
Performance Bonus |
LTIP Bonus 2006/2008 |
|||
| Herbert Hainer (Chairman of the Executive Board) |
1,120 | 23 |
1,500 |
800 |
343 | 3,786 |
| Glenn Bennett | 468 | 2141) | 637 | 400 | 0 | 1,719 |
| Robin J. Stalker | 485 | 12 |
600 | 400 | 260 | 1,757 |
| Erich Stamminger | 600 | 54 |
1,100 | 400 | 0 | 2,154 |
| Total | 2,673 | 303 |
3,837 | 2,000 | 603 | 9,416 |
| 1) Also contains a tax adjustment due to different tax rates in Germany and the USA. | ||||||
Executive Board Pension Commitments in 2006 € in thousands
| Pension regulation | Service cost | |
| Herbert Hainer (Chairman of the Executive Board) | 10% of the pensionable income + 2% for each full year of tenure starting from April 1, 1997 |
238 |
| Glenn Bennett | 20% of the pensionable income + 2% for each full year of tenure starting from January 1, 2000 |
70 |
| Robin J. Stalker | 10% of the pensionable income + 2% for each full year of tenure starting from January 1, 2001 |
161 |
| Erich Stamminger | 10% of the pensionable income + 2% for each full year of tenure starting from April 1, 1997 |
108 |
| Total | 577 |
