DHL 2002 Annual Report Download - page 48

western Germany for the first time in 2002. The collective wage agreement is valid until
April 30, 2004. It will ensure our long-term planning reliability, which will benefit us
greatly in the difficult market environment.
On January 1, 2002, Deutsche Post AG transferred its IT production activities to
its wholly-owned subsidiary Deutsche Post ITSolutions GmbH (DP ITS GmbH). At
the same time, we hived off our sales and marketing activities in the Express Germany
Business Division to Deutsche Post Euro Express Deutschland GmbH & Co. OHG
(DPEED). Collective wage agreements on standard market conditions of work and
payment were concluded with the unions for the employees of both companies; these
agreements came into force at the time of formation. This allows us to meet the
demands made of modern IT and sales companies, particularly by enabling us to offer
performance-related pay.
Occupational pension provision modified
We restructured our employer-funded occupational pension scheme in the year under
review. As part of the reorganization in line with the collective wage agreements, the
previous integrated pension scheme based on public sector regulations was replaced
by a fixed amount that is not dependent on external reference systems. Obligations
arising from occupational pension commitments to employees are primarily funded
by provisions.
The supplementary occupational pension scheme allows every Group employee
in Germany to establish an additional occupational pension which also receives
government subsidies. Employees convert part of their remuneration into pension
contributions which are paid into the PB pension fund established by Postbank
Versicherung; in return, they will receive a pension for life.
We have introduced a deferred compensation program for executives and
non-executive salaried employees who are not subject to collective wage agreements.
In this pension benefit model, executives may choose to convert part of their claim
to remuneration into occupational pension benefits.
System of fixed and variable remuneration for executives developed
We have begun to define the approximately 850 second- and third-level Group man-
agement positions in accordance with a uniform standard (“role profiling”),
and to allocate them to salary bands within a Global Job Banding System. This
will establish the conditions necessary for implementing uniform remuneration
standards throughout the Group.
In order to ensure strict implementation of corporate goals, we developed a
uniform bonus policy for executives. Starting in 2003, the variable component of the
total salaries of all executives at the second and third Group management levels was
set at 50% and 40%, respectively.
In line with the conditions of the stock option plan introduced in 2000, we
issued the second tranche of options to members of the Board of Management and
Group executives in fiscal year 2002. They received a total of 10,306,038 options;
executives in the US received 446,934 Stock Appreciation Rights (SAR).
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Management Report
Employees