Mercedes 2013 Annual Report Download - page 119

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C | Combined Management Report | Remuneration Report
Commitments upon termination of service
Retirement provision. The pension agreements of some
Board of Management members include a commitment
to an annual retirement pension, calculated as a proportion
of the former base salary and depending on the number
of years of service. Those pension rights were granted until
2005 and remain valid; they have been frozen at that level,
however. Payments of these retirement pensions start upon
request when the term of service ends at or after the age
of 60, or are paid as disability pensions if the term of service
ends before the age of 60 due to disability. The respective
agreements provide for a 3.5% annual increase in benefits
(with the exception that Wilfried Porth’s benefits are adjusted
in accordance with applicable law). The agreements include
a provision by which a spouse of a deceased Board of Manage-
ment member is entitled to 60% of that member’s pension.
That amount can increase by up to 30 percentage points depend-
ing on the number of dependent children.
Effective as of January 1, 2006, we replaced the pension
agreements of the Board of Management members with a new
arrangement, the so-called pension capital system. Under
this system, each Board of Management member is credited
with a capital component each year. This capital component
comprises an amount equal to 15% of the sum of the Board
of Management member’s fixed base salary and the actual annual
bonus, multiplied by an age factor equivalent to a rate of
return of 6% until 2015 and 5% as of 2016 (Wolfgang Bernhard
and Wilfried Porth: 5% for all years). These contributions to
pension plans are granted only until the age of 60. The benefit
from the pension plan is payable to surviving Board of Man-
agement members upon retirement at or after the age of 60,
or as a disability pension upon retirement before the age
of 60 due to disability.
In 2012, Daimler introduced a new company retirement benefit
plan for new entrants and new appointments for employees
paid according to collective bargaining wage tariffs as well as for
executives: the “Daimler Pensions Plan.” As before, the new
retirement benefit system features the payment of annual con-
tributions by Daimler, but is oriented towards the capital
market, combined with Daimler’s commitment to guarantee
the total of contributions paid. The Supervisory Board of
Daimler AG has approved the application of this system for
all newly appointed members of the Board of Management
(so far, Hubertus Troska). Accordingly, each member of the Board
of Management is credited with a capital component each
year. This amount is calculated from 15% of the total of the base
salary and the actual annual bonus. These contributions to
retirement provision are granted until the age of 62. The benefit
from the pension plan is payable to surviving Board of Man-
agement members upon retirement at or after the age of 62,
or as a disability pension upon retirement before the age
of 62 due to disability.
For the measurement of the total commitment, the targeted
level of retirement provision – also according to the period
of Board of Management membership – and the resulting
annual and long-term expense for the Company are taken into
consideration for each member of the Board of Management.
Payments under the pension capital system and
the Daimler Pensions Plan can be made in three ways:
– as a single amount;
– in twelve annual installments, whereby interest accrues
on each partial amount until it is paid out;
– as a pension with an annual increment (see above
Daimler Pension Plan pursuant to applicable law).
The contracts specify that if a Board of Management member
passes away before retiring for reason of age, the spouse
or dependent children is/are entitled to the full committed
amount in the case of the pension capital system, and to
the credit amount reached plus an imputed amount until the
age of 62 in the case of the Daimler Pensions Plan. If a Board
of Management member passes away after retiring for reason
of age, in the case of payment of twelve annual installments,
the heirs are entitled to the remaining present value. In the case
of a pension with benefits for surviving dependents, the
spouse/registered partner or dependent children is/are entitled
to 60% of the discounted terminal value (pension capital),
or the spouse/registered partner is entitled to 60% of the
actual pension (Daimler Pensions Plan).
Non-cash benefits and other fringe benefits
2013 2012
In thousands of euros
Dr. Dieter Zetsche 151 151
Dr. Wolfgang Bernhard 90 63
Dr. Christine Hohmann-Dennhardt 84 191
Wilfried Porth 93 114
Andreas Renschler1511 152
Hubertus Troska2603 4
Bodo Uebber 112 112
Prof. Dr. Thomas Weber 210 156
Total 1,854 943
1 Taking into account jubilee money of €62,995.
2 Taking into account jubilee money of €59,714. For the fulfillment
of disclosure obligations pursuant to Section 285 No. 9a of the German
Commercial Code (HGB), this amount is reduced by €155,000 for the
year 2013. The corresponding fringe benefits were granted and borne
by a subsidiary and are thus not included in the amounts to be disclosed
in the annual financial statements of the parent company, Daimler AG.
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