BMW 2013 Annual Report Download - page 120

120
88 GROUP FINANCIAL STATEMENTS
88 Income Statements
88 Statement of
Comprehensive Income
90 Balance Sheets
92 Cash Flow Statements
94 Group Statement of Changes in
Equity
96 Notes
96 Accounting Principles and
Policies
114 Notes to the Income Statement
121 Notes to the Statement
of Comprehensive Income
122
Notes to the Balance Sheet
145 Other Disclosures
161 Segment Information
19
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 mem-
bers of the Board of Management and share-based com-
mitments 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 2013 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 2016. The BMW Group re-
corded a personnel expense of € 5 million (2012: € 5 mil-
lion) for the Employee Share Scheme in 2013,
corre-
sponding to the difference between the market price and
the reduced price of the shares of preferred stock pur-
chased 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 in-
vest
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 2013 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 addi-
tional share of BMW AG common stock for each three
held or, at its discretion, pays the equivalent amount
in cash (share-based remuneration component) pro-
vided 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 de-
partment heads are also entitled to opt for a share-based
remuneration component, which, in most respects, is
comparable to the share-based remuneration arrange-
ments
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 2013).
The total carrying amount of the provision for the share-
based remuneration component of Board of Manage-
ment members and department heads at 31 December
2013 was € 1,647,188 (2012: € 657,276).
amounted to € 26 million (2012: € 26 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 2 013 2012
Audit of financial statements 14 14
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other attestation services 3 4
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 2 2
Tax advisory services 7 6
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other services 2 2
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 1 –
Fee expense 26 26
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 9 8