Mercedes 2006 Annual Report Download - page 140

124
Significant commitments to Board of Management members
upon termination of their services. No severance payments
are foreseen for Board of Management members in the case of
early termination of their service contracts. Solely in the case
of early termination of a service contract by mutual consent, the
Board of Management service contracts include a commitment
to payment of the base salary and to provision of a company car
until the end of the original service period. Such persons are
only entitled to payment of the performance-related component
of compensation, pro rata, for the period until the day when the
Board of Management member leaves the company. Entitlement
to payment of the performance-related component with a long-
term incentive effect is defined by the exercise conditions specified
in the respective plans.
The German Board of Management members with pension
agreements concluded with DaimlerChrysler AG before the
year 2006 can also receive pension payments and the use
of a company car for the period beginning after the end of the
original service period.
Irrespective of the above provisions, if DaimlerChrysler AG
terminates Mr. Sidlik’s contract without cause, or if he termi-
nates it for good reason, then he would be entitled to receive
an amount equal to twice the sum of his annual base salary and
average annual bonus over the prior three years. He would also
be entitled to receive a payment equal to the incremental value
of the retirement benefits that he would have otherwise been
entitled to receive at the end of the contract and certain other
pension benefits at termination.
If Mr. LaSorda’s contract is similarly terminated, then he would
be entitled to receive compensation equal to twice the sum
of his annual base salary and annual bonus. He would also be
entitled to receive pension credit for two additional years
of
service and certain other pension benefits at termination.
Sideline activities of the members of the Board of
Management. The members of the Board of Management should
accept management board or supervisory board positions and/
or any other administrative or honorary functions outside the
Group only to a limited extent. Furthermore, the members of
the Board of Management require the consent of the Supervisory
Board before commencing any sideline activities. This ensures
that neither the time required nor the compensation paid for such
activities leads to any conflict with the members’ duties to the
Group.
Insofar as such sideline activities are memberships of other
supervisory boards or comparable boards, these are disclosed
in the Notes to the Consolidated Financial Statements of Daimler-
Chrysler AG and on the Internet.
No compensation is paid to Board of Management members for
other positions held at companies of the Group.
Payments made to former members of the Board of Manage-
ment of DaimlerChrysler AG and their survivors. The pay-
ments made in 2006 to former members of the Board of Manage-
ment of DaimlerChrysler AG and their survivors amounted to
€25.1 million (2005: €16.9 million). Pension obligations towards
former members of the Board of Management and their
survivors amounted to €255.4 million as of December 31, 2006
(December 31, 2005: €292.9 million).
In thousands of €
Service costs in connection with pension plans 20061
666
389
431
34
250
26
30
408
277
2,511
Dr. Dieter Zetsche
Günther Fleig
Dr. Rüdiger Grube
Thomas W. LaSorda2
Andreas Renschler
Eric R. Ridenour2
Thomas W. Sidlik2
Bodo Uebber
Dr. Thomas Weber
Total
1 For Messrs. LaSorda, Ridenour and Sidlik, this only includes the service costs for the first
pension plan.
2 The service costs of the investments for the second pension plan of the US members of the
Board of Management for 2006 amount to €566 thousand for Mr. LaSorda, €300 thousand for
Mr. Ridenour and €605 thousand for Mr. Sidlik.