BMW 2006 Annual Report Download - page 123

122 Corporate Governance
116 Corporate Governance
116 Members of the Supervisory Board
119 Members of the Board of Management
120 Corporate Governance in the
BMW Group
121 Compensation Report
124 Directors’ Dealings
124 Shareholdings of members of the Board
of Management and Supervisory Board
125 Declaration of the Board of Manage-
ment and of the Supervisory Board
pursuant to §161 AktG
adjusted by analogy to the rules applicable for the
adjustment of civil servants’ pensions: the pensions
of members of the Board of Management are ad-
justed accordingly when civil servants’ remuneration
level B6 (excluding allowances) is increased by more
than 5%.
If a mandate is ended before the member of
the Board of Management reaches the age of 60, a
transitional payment amounting to 2/3rds of the
pension theoretically earned up to the date when a
full pension can be drawn, may become payable if,
after a minimum of three years of service as a mem-
ber of the Board of Management, this is considered
appropriate on the basis of an objective evaluation
of all circumstances. Arrangements are in place con-
cerning the offsetting of other income against pen-
sions and transitional payments.
The amounts disclosed below as the annual pen-
sion provision allocation for each member correspond
to the pension service cost.
Former members of the Board of Management
are entitled to lease or purchase cars and motor-
cycles on the basis of the terms and conditions ap-
plicable to senior management.
Compensation of the Board of Management
for the financial year 2006 (total)
On the basis of the proposed dividend, the total re-
muneration of the current members of the Board of
Compensation of the individual members of the Board of Management for the financial year 2006
Management of BMW AG for the financial year 2006
amounted to euro 14.5 million (2005: euro 12.2 mil-
lion). This comprises fixed components (including
other remuneration) of euro 2.3 million (2005:
euro 2.0 million) and variable components of euro
12.2 million (2005: euro 10.2 million).
In addition, an amount of euro 0.6 million (2005:
euro 0.5 million) was incurred for current members of
the Board of Management after termination of their
employment relationship.This relates to the expense
for allocations to pension provisions.
The amount paid to former members of the
Board of Management and their surviving dependants
was euro 3.8 million (2005: euro 2.6 million). Pen-
sion obligations to former members of the Board of
Management and their surviving dependants are
fully covered by pension provisions amounting to
euro 38.8 million (2005: euro 37.0 million), computed
in accordance with IAS 19.
in euro Fixed remuneration Variable Remuneration Allocation for
Other Fixed remune- remuneration Total year to pension
Salary remuneration ration Total provision
Norbert Reithofer1] 440,000 13,703 453,703 2,258,600 2,712,303 108,767
Helmut Panke2] 246,667 13,230 259,897 2,153,333 2,413,230 117,566
Frank-Peter Arndt3] 100,000 6,788 106,788 523,200 629,988 29,219
Ernst Baumann 360,000 18,451 378,451 1,818,300 2,196,751 97,540
Klaus Draeger4] 50,000 5,178 55,178 261,600 316,778 14,759
Michael Ganal 360,000 14,644 374,644 1,818,300 2,192,944 125,855
Burkhard Göschel5] 300,000 26,493 326,493 1,515,250 1,841,743 69,653
Stefan Krause 360,000 16,789 376,789 1,818,300 2,195,089 75,710
Total
6]
2,216,667 115,276 2,331,943 12,166,883 14,498,826 639,069
1]Chairman of the Board of Management from 1 September 2006.
2]Chairman of the Board of Management until 31 August 2006.
3]Member of the Board of Management from 1September 2006.
4]Member of the Board of Management from 1November 2006.
5]Member of the Board of Management until 31 October 2006.
6]Group perspective.
in euro million 2006 2005
Amount Proportion Amount Proportion
Fixed renumeration 2.3 15.9% 2.0 16.4%
Variable renumeration 12.2 84.1 % 10.2 83.6%
Total renumeration 14.5 100% 12.2 100 %