BMW 2012 Annual Report Download - page 106

106
78 GROUP FINANCIAL STATEMENTS
78 Income Statements
78 Statement of
Comprehensive Income
80 Balance Sheets
82 Cash Flow Statements
84 Group Statement of Changes
in Equity
86 Notes
86 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
18
Share-based remuneration
The BMW Group operates three share-based remunera-
tion schemes, namely the Employee Share Scheme
(for entitled employees), share-based commitments to
members of the Board of Management members and
share-based commitments to senior heads of department.
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 2012
at favourable conditions (see note 33 for the number
and price of issued shares). The holding period for these
shares is up to 31 December 2015. The BMW Group re-
corded
a personnel expense of € 5 million (2011: € 5 mil-
lion) for the Employee Share Scheme in 2012, correspond-
ing
to the difference between the market price and the
reduced price of the shares of preferred stock 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 added a share-based remuneration
component
to the compensation system for Board
of Management
members.
Each Board of Management member is required to invest
20 % of his / her total bonus (after tax) in shares of
BMW AG common stock, which are recorded in a sepa-
rate custodian account for each member concerned
(annual tranche). Each annual tranche is subject to a
holding period of four years (vesting period). Once the
The fee expense pursuant to § 314 (1) no. 9 HGB recog-
nised in the financial year 2012 for the Group auditors
The total fee comprises expenses recorded by BMW AG,
Munich, and all consolidated subsidiaries.
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
end of the agreed contract period (except in the case of
death or invalidity).
With effect from the financial year 2012, qualifying
senior heads of department are also entitled to opt for a
share-based remuneration component, which, in most
respects, is comparable to the share-based remuneration
arrangements for Board of Management members.
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.
The appropriate amounts are recognised as personnel
expense on a straight-line basis over the vesting period
and reported in the balance sheet as a provision.
The cash-settlement obligation for the share-based re-
muneration 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 31 Decem-
ber 2012).
The total carrying amount of the provision for the share-
based remuneration component of Board of Management
members and senior heads of department at 31 Decem-
ber 2012 was € 657,276 (2011: € 115,114).
amounted to € 26 million (2011: € 22 million) and con-
sists of the following:
The fee expense shown for KPMG AG Wirtschafts-
prüfungsgesellschaft, Berlin, relates only to services
provided on behalf of BMW AG, Munich, and its
German subsidiaries.
in € million 2012 2011
Audit of financial statements 14 13
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other attestation services 4 2
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 2 1
Tax advisory services 6 5
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other services 2 2
thereof KPMG AG Wirtschaftsprüfungsgesellschaft – 1
Fee expense 26 22
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 8 8