Adidas 2002 Annual Report Download - page 111

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The Group’s compensation system is composed of the follow-
ing elements:
>A “gross base salary”: A fixed component based on the
responsibilities, competencies and skills of the individual
employee.
>Our “pay for performance” bonus program: A performance-
based component of salaries of eligible employees in all
areas within the Group. More than 20% of all employees
receive a variable salary component with an average of
20% of their remuneration directly linked to individual and
Group performance.
>Long-term incentive programs: These include our man-
agement stock option plan (MSOP) that links the compen-
sation of approximately 450 key executives worldwide to
the development of the adidas-Salomon share price.
Options from this program were exercised for the first time
in October 2002 (see notes 19 and 30).
>Other benefits: These include in particular our 401-K
pension plans in the USA and the PP2000 pension program
for employees in Germany. In 2002, 900 eligible employees
participated in the PP2000 program, which represents
an increase of 30% compared to the prior year.
COMMITTED TO LONG-TERM CAREER DEVELOPMENT ///
At adidas-Salomon, we believe that education and learning
are critical to the long-term success of our Group. With
personnel/management development programs, we strive to
ensure that our employees continue to grow and learn. These
programs include management training courses, as well as
“future leader programs” such as “Campus Europe” that
will commence in 2003 and provides management training
to promising talents within Europe. We also attach great
importance to the education of young employees. At our
headquarters in Germany, for example, 38 apprentices and
15 trainees are currently enjoying solid, diverse and inter-
national “on the job” training in various departments and
divisions of the adidas-Salomon Group.
Our programs are supported by internal and external
providers for training as well as e-learning tools. In 2002, we
implemented an Internet-based learning program giving our
employees worldwide the possibility to independently improve
their computer skills focused on their specific needs. These
courses are very popular amongst our employees. As a
result, we intend to extend this program to other areas,
including language courses which hold high priority at
adidas-Salomon.
BALANCING WORK AND HOME LIFE /// Different people have
different needs – especially when it comes to balancing their
work and private responsibilities. To meet the requirements
of different personal and job-related needs, adidas-Salomon
has developed a flexible working hours model “Flexitime – A
Matter of Trust”. In January 2002, adidas-Salomon attained
the basic certificate for the “Occupation and Family Audit”
awarded by the non-profit Hertie Foundation in Germany. We
are continuing to work on a number of initiatives in this area
including the implementation of our “Work-Life Balance
System” programs in 2003 and beyond.
APPRECIATION AND OUTLOOK /// 2002 was an exciting year
in which, despite tough markets, adidas-Salomon achieved
tremendous results. The Management would like to thank all
employees for their magnificent support, cooperation and
commitment this year. In addition to the programs mentioned
above, important Human Resources priorities in 2003 include
formalizing succession planning within the Group and further
rolling out our HR system solutions.
COMPENSATION DIAGRAM
REMUNERATION MEASUREMENT BASIS
BENEFITS Individual Gain / Need
(Flexible)
Long-Term Incentives Long-Term Performance
(Variable) of the Individual
VARIABLE PAY Annual Performance
(Variable)
BASE PAY Competencies & Skills
(Fixed)
Position
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Total Remuneration