BMW 2010 Annual Report Download - page 161

159 STATEMENT ON CORPORATE GOVERNANCE
The amount paid to former members of the Board of
Management and their dependants was euro 3.7 million
(2009: euro 3.8 million). Pension obligations to former
members of the Board of Management and their depend-
ants are fully covered by pension provisions amounting
to euro 49.7 million (2009: euro 46.7 million), computed
in accordance with IAS 19.
2. Compensation of the Supervisory Board
Responsibilities, regulation pursuant to Articles of
Incorporation
The compensation of the Supervisory Board is determined
by shareholders’ resolution at the Annual General Meet-
ing. The compensation regulation valid for the financial
year 2010 was resolved by shareholders at the Annual
General Meeting on 8 May 2008 and is set out in Article
15 of BMW AG’s Articles of Incorporation, which can be
viewed and /or downloaded at www.bmwgroup.com\ir
under the menu items “Corporate Facts” and “Corporate
Governance”.
Compensation principles, compensation components
The Supervisory Board of BMW AG receives both fixed
and corporate performance-related compensation.
Earnings per share of common stock form the basis for
corporate performance-related compensation.
Each member of the Supervisory Board receives, in addi-
tion to the reimbursement of expenses, a fixed amount of
euro 55,000 (payable at the end of the year) as well as a
corporate performance-related compensation of euro 220
for each full euro 0.01 by which the earnings per share
(EPS) of common stock reported in the Group Financial
Statements for the relevant financial year (remuneration
year) exceed a minimum amount of euro 2.30 (payable
after the Annual General Meeting held in the following
year). An upper limit of euro 110,000 is in place for the
performance-related compensation.
With this combination of fixed and corporate perform-
ance-related compensation, the compensation structure
in place for BMW AG’s Supervisory Board complies
withthe recommendation contained in section 5.4.6 of
the German
Corporate Governance Code. The German
Corporate
Governance Code also recommends that the
exercising of chair and deputy chair positions in the
Supervisory Board as well the chair and membership of
committees should also be considered when determin-
ing the level of compensation.
Accordingly, the Articles of Incorporation of BMW AG
stipulate that the Chairman of the Supervisory Board
shall receive three times the amount and each Deputy
Chairman shall receive twice the amount of the remu-
neration
of a Supervisory Board member. Provided the
relevant committee convened for meetings on at least
three days during the financial year, each chairman of the
Supervisory Board’s committees receives twice the
in euro Allocated to Present value of Present value of Balance on pension
pension provisions in pension obligations pension obligations accounts at 31.12. 2010
financial year 20101(defined benefit plans), (defined benefit plans), (defined benefit plans)2
in accordance with IFRS2, 3 in accordance with HGB2
Norbert Reithofer 168,018 4,393,600 4,092,763 3,493,226
(131,815) (3,583,214) (3,583,214) (–)
Frank-Peter Arndt 94,937 2,972,820 2,769,243 2,389,511
(73,233) (2,440,806) (2,440,806) (–)
Herbert Diess 123,733 2,079,474 1,915,385 1,646,141
(93,685) (1,619,404) (1,619,404) (–)
Klaus Draeger 95,435 2,736,323 2,539,567 2,226,217
(74,495) (2,223,687) (2,223,687) (–)
Friedrich Eichiner 109,474 2,931,281 2,741,092 2,340,081
(86,612) (2,406,328) (2,406,328) (–)
Harald Krüger 70,062 1,570,426 1,408,702 1,213,803
(51,300) (1,187,492) (1,187,492) (–)
Ian Robertson 238,584 714,664 660,951 532,713
(189,682) (381,011) (381,011) (–)
Gesamt2900,243 17,398,588 16,127,703 13,841,692
(700,822) (13,841,942) (13,841,942) (–)
1 Corresponds to service cost in accordance with IFRS.
2 Based on legal right to receive the benefits already promised to them, current board members were given the option of choosing between the old and new models at the time the
Company changed from a defined benefit to a defined contribution system.
3 Defined benefit obligations (DBO)
Pension benefits