Mercedes 2008 Annual Report Download - page 130

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As a result of these provisions and the fact that in accordance
with a Supervisory Board resolution of 2006, Daimler AG Board
of Management service contracts – both initial contracts and
extensions – generally have a term of only three years, Daimler
AG is significantly below the limit for severance compensation
of two years’ remuneration as suggested by the German Corpo-
rate Governance Code.
Sideline activities of Board of Management members. The
members of the Board of Management should accept management
board or supervisory board positions and/or any other admini-
strative 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 remuneration paid for such activities leads to any conflict
with the members’ duties to the Group.
Insofar as such sideline activities are memberships of other super-
visory boards or comparable boards, they are disclosed in the
Notes to the Consolidated Financial Statements of Daimler AG
and on our website.
No remuneration is paid to Board of Management members for
board positions held at other companies of the Group.
Loans to members of the Board of Management. In 2008, no
advances or loans were made to members of the Board of Mana-
gement of Daimler AG.
Payments made to former members of the Board of Manage-
ment of Daimler AG and their survivors. The payments made
in 2008 to former members of the Board of Management of
Daimler AG and their survivors amounted to €19.1 million (2007
€67.9 million). The difference between the two years is primarily
due to the exercise of stock options by former members of the
Board of Management in 2007. The pension provisions for former
members of the Board of Management and their survivors amo-
unted to €167.0 million at December 31, 2008 (2007: €175.3
million).
Remuneration of the Supervisory Board
Supervisory Board remuneration in 2008. The remuneration
of the Supervisory Board is determined by the Annual Meeting of
Daimler AG and is governed by the company’s Articles of Incor-
poration. The new regulations for Supervisory Board remunerati-
on approved by the Annual Meeting in April 2008 specify that
the members of the Supervisory Board receive, in addition to the
refund of their expenses and the cost of any value-added tax
incurred by them in performance of their office, fixed remunerati-
on of €100,000, with three times this amount for the Chairman
of the Supervisory Board, twice this amount for the Deputy Chair-
man of the Supervisory Board and the Chairman of the Audit
Committee, 1.5 times this amount for the chairmen of the other
Supervisory Board committees and members of the Audit Com-
mittee, and 1.3 times this amount for members of the other
Supervisory Board committees. Members of a Supervisory Board
committee are only entitled to remuneration for that member-
ship if the committee has actually convened to fulfill its duties in
the respective year. If a member of the Supervisory Board exer-
cises several of the aforementioned functions, he or she is to be
remunerated solely for the function with the highest remunera-
tion. The individual remuneration of the members of the Supervi-
sory Board is shown in the table on the right.
The members of the Supervisory Board and its committees recei-
ve a meeting fee of €1,100 for each Supervisory Board meeting
and committee meeting that they attend.
Except for the remuneration paid to the members of the Supervi-
sory Board representing the employees in accordance with their
contracts of employment, no remuneration was paid for services
provided personally beyond the aforementioned board and com-
mittee activities, in particular for advisory or agency services.
The remuneration paid in 2008 to the members of the Supervi-
sory Board of Daimler AG for their services to the Group there-
fore totaled €2.8 million (2007: €2.1 million).
Loans to members of the Supervisory Board. In 2008, no
advances or loans were made to members of the Supervisory
Board of Daimler AG.