Mercedes 2006 Annual Report Download - page 225

Consolidated Financial Statements | Other Notes | 209
The following represent transactions with DaimlerChrysler
shareholders:
DaimlerChrysler incurred expenses of US $0.8 million in 2006
(2005: US $0.8 million; 2004: US$0.6 million) for advertising
and related marketing activities with a US magazine. Earl G.
Graves, a member of DaimlerChrysler’s Supervisory Board and
a shareholder of DaimlerChrysler AG, is the Chairman, Chief
Executive Officer and sole stockholder of the magazine’s ultimate
parent company.
DaimlerChrysler Canada Inc. paid CAD0.8 million in 2006 (2005:
CAD1.2 million) to a subsidiary of Mosaic Sales Solutions Hold-
ing Company for field marketing services. The chief executive
officer of that company, Tony LaSorda, is the brother of Thomas
LaSorda, a member of the Board of Management of Daimler-
Chrysler AG, who assumed responsibility for the Chrysler Group
in September 2005.
37. Compensation of the Members of the Board of
Management and the Supervisory Board and Further
Additional Information
Compensation. The following information regarding the
compensation of the members of the Board of Management
and of the Supervisory Board is disclosed on an individual
basis in the Compensation Report (see page 120).
The total compensation paid by Group related companies to
the members of the Board of Management of DaimlerChrysler AG
is calculated from the amount of compensation paid in cash and
from benefits in kind. The latter primarily comprise the provision
of company cars and the reimbursement of expenses for security
precautions.
€7.5 million are paid as fixed, i.e. non-performance-related
compensation, €9.2 million as short-term variable, i.e. short-term
performance-related compensation, and €3.8 million as variable
performance-related compensation with medium-term and long-
term incentive effects that was granted in previous years and
became due for payment in 2006. This totaled an amount of
€20.5 million for the year 2006 (2005: €34.9 million, of which €9.3
million was fixed and €25.6 million was variable compensation).
In 2006, 276,160 phantom shares were granted to the members of
the Board of Management from the long-term share-based
compensation component (2005: 454,914 phantom shares).
The granting in 2006 was made based on a value of €46.17
per phantom share. Before being paid out in the year 2010, the
numbers of phantom shares may change, depending on internal
and external performance targets and continuous activity in
the Board of Management. Since payment continues to depend
on the share price at the time of payment, this element of
compensation will not be shown in the total compensation of
the Board of Management until it is actually paid out in 2010.
For detailed information on stock-based compensation programs,
see Note 23.
In 2006, stock options granted in 2003 were exercisable.
In this context, Members of the Board of Management exercised
148,000 stock options.
The service costs in connection with pension plans of the members
of the Board of Management for the year 2006 amounted
to €4.0 million.
The payments made in 2006 to former members of the Board
of Management of DaimlerChrysler AG and their surviving depen-
dant amount to €25.1 million (2005: €16.9 million). The total
obligation as of December 31, 2006, to provide pension, retire-
ment and similar benefits for the former members of the
Board of Management and their surviving dependant was
€255.4 million (2005: €292.9 million).