BMW 2012 Annual Report Download - page 175

175 STATEMENT ON CORPORATE GOVERNANCE
The amount paid to former members of the Board of
Management and their dependants was € 3.8 million
(2011: € 3.7 million). Pension obligations to former mem-
bers of the Board of Management and their surviving
dependants are fully covered by pension provisions
amounting to € 61.2 million (2011: € 51.6 million), com-
puted in accordance with IAS 19. The increase in the
present value of defined benefit obligations for current
Board of Management and pension obligations to for-
mer Board of Management members and their surviving
dependants, measured in accordance with IFRS, was
primarily attributable to interest rate factors.
2. Supervisory Board compensation
Responsibilities, regulation pursuant to Articles of
Incorporation
The compensation of the Supervisory Board is deter-
mined by shareholders’ resolution at the Annual
General Meeting. The compensation regulation valid
for the financial year 2012 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 Incor-
poration,
which can be viewed and / or downloaded
at www.bmwgroup.com/ir under the menu items “Cor-
porate
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.
In accordance with rules contained in BMW AG’s Arti-
cles of Incorporation, each member of the Supervisory
Board receives, in addition to the reimbursement of
reasonable expenses, a fixed amount of € 55,000 (payable
at the end of the year) as well as a performance-related
compensation of € 220 for each full € 0.01 by which the
earnings per share (EPS) of common stock reported in
the Group Financial Statements for the financial year
(remuneration year) exceed a minimum amount of
€ 2.30 (payable after the Annual General Meeting held
in the following year). An upper limit corresponding to
twice the amount of the fixed compensation (€ 110,000)
is in place for the corporate performance-related com-
pensation.
With this combination of fixed and corporate perfor-
mance-related compensation, the compensation struc-
ture in place for BMW AG’s Supervisory Board has
complied up to now with the recommendation con-
in € Allocated to Present value of Present value of Balance on accounts
pension provisions in pension obligations pension obligations at 31.12. 2012
financial year (defined benefit plans), (defined benefit plans), (defined benefit plans)2
20121 in accordance with in accordance with HGB2
IFRS2, 3
Norbert Reithofer 217,462 7,770,956 5,263,483 4,960,974
(196,016) (5,093,510) (4,733,729) (3,858,278)
Frank-Peter Arndt 108,769 4,390,861 3,258,422 3,268,852
(110,826) (3,027,171) (2,839,571) (2,584,455)
Milagros Caiña Carreiro-Andree4 150,000 169,119 168,608 151,882
(–) (–) (–) (–)
Herbert Diess 145,829 3,459,608 2,407,993 2,402,944
(147,280) (2,201,981) (2,041,544) (1,817,002)
Klaus Draeger 114,531 4,357,273 3,078,164 3,088,017
(112,163) (2,908,811) (2,711,411) (2,426,238)
Friedrich Eichiner 127,028 4,443,313 3,203,857 3,214,112
(127,016) (3,058,014) (2,872,538) (2,536,562)
Harald Krüger 88,004 2,911,534 1,934,608 1,911,397
(87,282) (1,669,436) (1,508,167) (1,382,823)
Ian Robertson 281,416 1,872,190 1,274,502 1,197,553
(278,587) (994,200) (924,011) (768,936)
Total21,233,039 29,374,854 20,589,637 20,195,731
(1,059,170) (18,953,123) (17,630,971) (15,374,294)
1 With the exception of Milagros Caiña Carreiro-Andree, the amount disclosed corresponds to service cost in accordance with IFRS
2 Based on legal right to receive the benefits already promised to them, Board of Management members appointed for the first time prior to 1 January 2010 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
4 Member of the Board of Management since 1 July 2012. The pension expense for Milagros Caiña Carreiro-Andree in the financial year 2012 corresponds to the defined
contribution amount
Pension benefits of the individual members of the Board of Management