Mercedes 2008 Annual Report Download - page 217

Consolidated Financial Statements |Notes to Consolidated Financial Statements |213
Mr. Mark Wössner, a member of Daimler’s Supervisory Board,
received rental payments in 2007 and 2006. In 2007, together
with two associates, he received €0.9 million from Westfalia Van
Conversion GmbH, a 100% subsidiary of the Daimler Group, for
the rental of premises (2006: €1.0 million). The Group sold its
equity interest in Westfalia Van Conversion GmbH in October
2007.
Daimler incurred expenses of US $0.7 million in 2007 (2006:
US $0.8 million) for advertising and marketing actions in a US
magazine. Earl G. Graves, a former member of the Supervisory
Board, was Chairman, Chief Executive Officer and sole proprietor
of that magazine’s ultimate parent company at that time.
For information on the remuneration of board members, see
Note 35.
Shareholders. The Group distributes vehicles in Turkey through
a dealership which also holds a minority interest in one of the
Group’s subsidiaries. In addition, the Group has business relation-
ships with vehicle importers in select countries that also hold
minority interests in Group companies. Revenue generated by
these transactions amounted to €0.2 billion in 2008 (2007:
€0.2 billion).
35. Remuneration of the members of the Board of Manage-
ment and the Supervisory Board
Information regarding the remuneration of the members of the
Board of Management and of the Supervisory Board is disclosed
on an individual basis in the Remuneration Report, which is part
of the Management Report (see page 122).
Board of Management. The total remuneration granted by Group
companies to the members of the Board of Management of
Daimler AG is calculated from the total amounts of remuneration
paid in cash (base salary and annual bonus), the value of the
Group’s personnel expense or income recognized from share-based
remuneration, and the total of non-cash benefits in kind that
are subject to income tax. Further information on share-based
remuneration is provided in Note 20.
The total remuneration comprises €6.2 million as fixed, i.e. non-
performance-related remuneration (2007: €7.2 million; 2006:
€7.5 million), €1.5 million as short-term variable, i.e. short-term
performance-related remuneration (2007: €17.0 million; 2006:
€9.2 million); and income for the Group of €22.5 million as variable
performance-related remuneration with a medium and longterm
incentive effect granted in 2008 and previous years (2007:
expense of €30.3 million; 2006: expense of €9.0 million). This
adds up to income for the Group of €14.8 million for the year 2008
(2007: expense of €54.5 million; 2006: expense of €25.7 mil-
lion). The income from share-based remuneration in the year
2008 resulted from the release of provisions following the
negative share-price development. The amounts stated for fixed
and short-term performance-related remuneration for the
years 2007 and 2006 also include payments to Board of Manage-
ment members who resigned from their positions in the context
of the Chrysler transaction. For 2007, those Board of Manage-
ment members also received bonus and severance payments
in connection with the Chrysler transaction and their resignation
from the Board of Management in a total amount of €19.3
million.
Also without consideration of the Board of Management members
who resigned, the total remuneration for the active Board of
Management members decreased significantly in 2008 compared
to 2007. The main reason for the sharp decrease compared with
the prior year is the reduction in the operating profit (EBIT) from
€8,710 million to €2,730 million, which resulted in a significantly
lower annual bonus.