Porsche 2012 Annual Report Download - page 77

Post-employment benefits in the event of
regular or early termination of service
In the event of regular termination of their service on
the board of management of the Volkswagen group,
Prof. Dr. Winterkorn and Mr. Pötsch are entitled to a
pension, including a surviving dependents’ pension
as well as the use of company cars for the period in
which they receive their pension. The agreed bene-
fits are paid or made available on reaching the age
of 63. The retirement pension is calculated as a
percentage of the fixed basic salary, which ac-
counts for most of the fixed individual remuneration
for members of the board of management received
from Volkswagen AG. Starting at 50 percent, the
individual percentage increases by two percentage
points for each year of service. The executive com-
mittee of Volkswagen AG’s supervisory board has
defined a maximum of 70 percent. These benefits
are not broken down any further into performance-
related components and long-term incentive com-
ponents. Both Prof. Dr. Winterkorn and Mr. Pötsch
have a retirement pension entitlement of 70 percent
as of 31 December 2012.
In the event of disability, they are entitled to the
retirement pension. Surviving dependents receive a
widows’ pension of 66 2/3 percent and orphans’
benefits of 20 percent of the former member of the
board of management’s pension. The members of
the board of management Prof. Dr. Winterkorn and
Mr. Pötsch are also entitled to a pension and to a
surviving dependents’ pension as well as the use of
company cars for the period in which they receive
their pension in the event of early termination of their
service on the board of management. The retirement
pension to be granted after leaving the Volkswagen
AG is payable immediately if their membership of the
board of management is terminated by Volkswagen
AG, and in other cases on reaching the age of 63.
Any remuneration received from other sources until
the age of 63 is deductible from the benefit entitle-
ment up to a certain fixed amount.
Prof. Dr. Winterkorn and Mr. Pötsch are also
subject to the following rule for members of the
board of management of Volkswagen AG: if mem-
bership of the board of management is terminated
for cause through no fault of the board of manage-
ment member, the claims under board of manage-
ment contracts entered into since 20 November
2009 are limited to a maximum of two years’ remu-
neration, in accordance with the recommendation in
No. 4.2.3 (4) of the German Corporate Governance
Code (cap on severance payments). For board of
management members who are commencing their
third or later term of office, existing rights under
contracts entered into before 20 November 2009
are grandfathered.
No severance payment is made if membership
of the board of management is terminated for a
reason for which the board of management member
is responsible.
Matthias Müller will receive future benefits from
Porsche AG that amount to 50 percent of the fixed
annual salary agreed with Porsche AG at the date of
his retirement. If Mr. Müller retires on reaching the
age of 63 or in the event of disability, he is entitled
to monthly payment of the pension. If he leaves the
executive board of Porsche AG of his own volition,
he has a vested right to pension benefits.
Surviving dependents of Mr. Müller receive a
widows’ pension of 60 percent and half orphans’
benefits of 15 percent and full orphans’ benefits of
30 percent of the former member of the board of
management’s retirement pension. The orphans’
benefits are limited to a total of 60 percent of the
retirement pension.
Of the current addition to pension provisions an
amount 360,753 euro was recognized at Porsche AG
for Mr. Müller. The amount recognized at Volkswagen
AG for the addition to pension provisions amounts to
904,811 euro for Prof. Dr. Winterkorn and 1,699,477
euro for Mr. Pötsch. Current pensions for Mr. Müller,
Prof. Dr. Winterkorn and Mr. Pötsch are index-linked
in accordance with the index-linking of the highest
collectively agreed salary insofar as the application of
Sec. 16 of the German Company Pension Act
(BetrAVG) does not lead to a larger increase.
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