Porsche 2012 Annual Report Download - page 64

The parameters specified for Mr. Müller are:
· Implementation of the concept for the investment
strategy,
· Professional risk management and coordination in
connection with legal and administrative proceed-
ings and
· Cost management with regard to the administra-
tion of Porsche SE and its investments.
The parameters specified for Mr. von Hagen are:
· Creation of the organizational foundations for
professional investment management,
· Further development and operationalization of the
investment strategy,
· Positioning Porsche SE on the capital market as a
powerful investment platform and
· profit- and risk-based management of the invest-
ment portfolio.
For each fiscal year completed, the executive
committee of the supervisory board of Porsche SE
draws up a proposal for the individual amount of the
variable remuneration, taking into account the re-
spective business and earnings situation and based
on the specific performance of the individual mem-
ber of the executive board. This proposal is submit-
ted to the supervisory board of Porsche SE for
decision.
The amounts of variable remuneration paid are
limited to 3,500,000 euro for Mr. Müller and to
300,000 euro for Mr. von Hagen.
When payment of variable remuneration falls
due depends on the achievement of short- and
long-term targets. The short-term component,
amounting to 40 percent of the variable remunera-
tion, is paid out three months after the end of the
fiscal year concerned, on the condition that the
Porsche SE group has reported a profit before tax
for the respective fiscal year at group level. The
remaining 60 percent of the variable remuneration
is paid out depending on the development of the
company over several years. A payment is made
two years after the short-term variable component
is due, but only if the Porsche SE group has
reported a profit before tax for the respective
fiscal year at group level, and if the net liquidity of
Porsche SE is positive as of 31 December of the
last calendar year before payment falls due.
Moreover, at its discretion, the supervisory
board may grant the individual members of the
executive board of Porsche SE a special bonus for
previously agreed targets or a subsequent bonus
in recognition of extraordinary performance.
Since the fiscal year 2012, all members of the
executive board of Porsche SE, except Mr. Thomas
Edig, who left the board as of the end of the day
on 29 February 2012, have received benefits in
kind in the form of the use of company cars.
Porsche SE bears any taxes incurred in this con-
nection. In addition, the company provides
Messrs. Müller and von Hagen with insurance
cover. This also applied for Mr. Edig until he left
the executive board of Porsche SE. The company
also bears costs for security services for Mr. von
Hagen. Any benefits in kind are included at their tax
values in the presentation of the non-performance-
related remuneration of the members of the execu-
tive board.
The agreements concluded with Prof. Dr.
Winterkorn and Mr. Pötsch provide for continued
payment of the fixed basic component for a period
of 12 months in the event of illness. In the event of
death, the fixed basic component will continue to
be paid for six months following the month of
death. The agreements concluded with Messrs.
Müller and von Hagen provide for continued pay-
ment of the fixed and variable components for a
period of 12 months in the event of illness and for
a period of 6 months following the month of death
in the event of death.
2The company
Group management report
260