Mercedes 2015 Annual Report Download - page 117

124 B | COMBINED MANAGEMENT REPORT | REMUNERATION REPORT
The annual bonus is variable remuneration, the level of which
is primarily linked to the operating profit of the Daimler Group
(EBIT). For the past financial year, the annual bonus was linked
to the target for the financial year determined by the Supervisory
Board (derived from the level of return targeted for the medium
term and the growth targets), the actual result compared with the
prior year, the individual performance of the Board of Man-
agement members and the achievement of compliance targets.
In addition, qualitative targets are defined and included. With
the actual-actual comparison, achievement of EBIT at the prior-
year level constitutes target achievement of 100%. With the
target-actual comparison, the particularly ambitious definition
of the targeted EBIT that is oriented towards the competition
constitutes target achievement of 150%.
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B.48
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B.49
Primary reference parameters:
– 50% relates to a comparison of actual EBIT in 2015
with EBIT targeted for 2015.
– 50% relates to a comparison of actual EBIT in 2015
with actual EBIT in 2014.
Amount with 100% target achievement
(target annual bonus):
In 2015, this is equivalent to the respective base salary.
Range of possible target achievement:
0% to 200%, that is, the annual bonus due to EBIT achievement
has an upper limit of double the base salary and may also be zero
(see below). Both primary reference parameters, each of which
relates to half of the annual bonus, can vary between 0% and
200%. For the primary reference parameter relating to half
of the annual bonus, “comparison of actual EBIT in the financial
year with EBIT targeted for the financial year,” the limits of
the unchanged possible range of 0% to 200% are defined as
of 2014 by a deviation of +/- three percent of the prior-year
revenue (previously two percent).
For the other primary reference parameter, which also relates
to half of the annual bonus, “comparison of actual EBIT in
the financial year with actual EBIT in the prior year,” the limits
of the unchanged possible range of 0% to 200% continue to
be defined by a deviation of +/- two percent of the prior-year
revenue.
The Supervisory Board may take account of the personal
performance of the individual Board of Management members
with an addition or deduction of up to 25% on the basis of the
agreed individual targets, with the degree of target achievement
calculated from the primary reference parameters. In addition,
an amount of up to 10 percent can be added or deducted,
depending on the key figures/assessment basis determined in
advance. Since 2012, non-financial targets have been used
as a basis for assessment of the latter component. For the past
financial year, those targets were the further development
and permanent establishment of the corporate value of integrity,
as well as diversity and the maintenance and enhancement
of a high level of employee satisfaction and product quality.
Also in 2015, further qualitative targets were agreed upon
with the individual members of the Board of Management with
regard to the development and sustained function of the
compliance management system. The complete or partial non-
achievement of these individual compliance targets can be
reflected by a deduction of up to 25% from the individual target
achievement. However, the compliance targets cannot result
in any increase in individual target achievement, even in the case
of full accomplishment.
The total amount to be paid out from the annual bonus
is limited to 2.35 times the base salary of the respective
financial year.
Annual bonus in 2015
dependent upon
EBIT target achievement
Range of possible target achievement:
0% – 200%
– 50% relates to a comparison
of actual EBIT in 2015 with
EBIT targeted for 2015
– 50% relates to a comparison
of actual EBIT in 2015 with
actual EBIT in 2014
Target achievement: “individual targets”
Range of possible target achievement:
-25% – +25%
Individual target agreements
in 2015
Target achievement: “non-financial
targets”
Range of possible target achievement:
-10% – +10%
For 2015: Further develop-
ment and permanent estab-
lishment of the corporate
value of integrity, as well as
diversity and the maintenance
and enhancement of a high
level of employee satisfaction
and product quality.
Target achievement: “compliance targets”
Range of possible target achievement:
-25% – 0%
Compliance
agreements in 2015
Maximum target achievement (total cap): 235% of the target bonus
B.49
Annual
bonus – short- and medium-term
pe
rformance-related remuneration E page 124
B.48
annual
bonus 2015 = target bonus x overall target achievement
target bonus target achievement EBIT
= 100 % of base +/- target achievement “individual targets”
salary 2015 +/- target achievement “non-financial target
s”
- target achievement “compliance targets”
overall target achievement
time
of payment of annual bonus 2015
50
% of annual bonus = in March of the year after the reporting year (2016)
50
% of annual bonus (deferral) = in March of the second year after the reporting year (2017)
amount paid out = 50% of annual bonus x “relative share performance”1
1 Depending on the development of the Daimler share price compared with the Dow Jones STOXX Auto Index.
shor
t- and medium-term
pe
rformance-related
c
omponents approx. 29%