BMW 2011 Annual Report Download - page 106

106
76 GROUP FINANCIAL STATEMENTS
76 Income Statements
76 Statement of
Comprehensive Income
78 Balance Sheets
80 Cash Flow Statements
82 Group Statement of Changes
in Equity
84 Notes
84 Accounting Principles
and Policies
100 Notes to the Income
Statement
107 Notes to the Statement
of Comprehensive Income
108
Notes to the Balance Sheet
129 Other Disclosures
145 Segment Information
20
Share-based remuneration
Two share-based remuneration programmes are in place
within the BMW Group, the employee share programme for
qualifying employees of the BMW Group and share-based
commitments to members of the Board of Management.
In the case of the employee share scheme, non-voting
shares of preferred stock in BMW AG were granted to
qualifying employees during the financial year 2011
at
favourable conditions (see note 34 for the number and
price of issued shares). The holding period for these shares
is up to 31 December 2014. The BMW Group recorded a
personnel expense of € 5 million (2010: € 5 million) for the
employee share programme in 2011, corresponding to
the difference between the market price and the reduced
price of the shares purchased by employees. The Board of
Management reserves the right to decide anew each year
with respect to an employee share scheme.
For financial years beginning after 1 January 2011,
BMW AG has added a share-based remuneration com-
ponent to the existing compensation system for Board
of Management members.
Each Board of Management member is required to invest
20 % of his total bonus (after tax) in shares of BMW AG
common stock, which are recorded in a separate custodian
account for each member concerned (annual tranche).
Each annual tranche is subject to a holding period of four
years. Once the holding period is fulfilled, BMW AG grants
one additional share of BMW AG common stock for each
three held or, at its discretion, pays the equivalent amount
in cash (share-based remuneration component) provided
that the term of office has not been terminated before the
The fee expense pursuant to § 314 (1) no. 9 HGB recog-
nised in the financial year 2011 for the Group auditors
The total fee comprises expenses recorded by BMW AG,
Munich, and all consolidated subsidiaries. The fee ex-
pense shown for KPMG AG Wirt schafts prüfungsgesell-
end of the agreed contract period (except in the case of
death or invalidity).
The share-based remuneration component is measured
at its fair value at each balance sheet date between grant
and settlement date, and on the settlement date itself,
and recognised as personnel expense on a straight-line
basis over the term of office of the Board of Management
member (vesting period) and recognised as a provision.
For these purposes, the cash-settlement obligation for
the share-based remuneration component is measured
at its fair value at the balance sheet date (based on the
closing price of BMW AG common stock in Xetra trading
at 30 December 2011).
The total carrying amount of the provision for the share-
based remuneration component at 31 December 2011
was € 115,113.63.
The total expense recognised in 2011 for the share-based
remuneration component for Board of Management
members was also € 115,113.63.
The fair value of the share-based remuneration com-
ponent at grant date was € 668,854.04, based on a total
of 11,945 shares of BMW AG common stock or cash
settlement equivalent deemed to have been granted and
measured at the relevant share price at the date on
which the contract for the share-based remuneration
programme was signed.
Further details on the remuneration of the Board of Man-
agement are provided in the 2011 Compensation Report.
amounted to € 22 million (2010: € 19 million) and con-
sists of the following:
schaft, Berlin, relates only to services provided on be-
half of BMW AG, Munich, and its German subsidiaries.
in € million 2011 2010
Audit of financial statements 13 11
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other attestation services 2 1
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 1 –
Tax advisory services 5 5
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other services 2 2
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 1 1
Fee expense 22 19
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 8 7