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030 ANNUAL REPORT 2006 › adidas Group ›
Compensation Report
In our Compensation Report, we summarize the principles
relevant for determining the compensation of our Execu-
tive Board and outline the structure and level of Executive
and Supervisory Board compensation.
Disclosure Complies with Legal Requirements
This report is based on the recommendations of the German
Corporate Governance Code. In accordance with the require-
ments of German commercial law and the Act on the Disclo-
sure of Executive Board Compensation (VorstOG), this report
contains information that is an integral part of the Notes pur-
suant to § 314 German Commercial Code (HGB) and of the
Management Report pursuant to § 315 HGB (see Reporting
Pursuant to § 315 Section 2 No. 4 and Section 4 HGB, p. 114).
For this reason, an additional description is not made in the
Notes and Management Report.
Executive Board Compensation in 2006
Compensation Determined by General Committee
In accordance with its Rules of Procedure, our Supervisory
Board has assigned matters relating to the structure and
adequacy of the level of Executive Board compensation to its
co-determined General Committee (see Supervisory Board
Report, p. 20).
Three Components of Compensation
In 2006, the total compensation of the members of our Execu-
tive Board amounted to € 9.416 million. The structure of our
Executive Board’s compensation is based on our Group’s size
and global orientation as well as our financial and economic
position. Criteria for determining adequacy of Executive Board
compensation include the responsibilities and contributions
of each Executive Board member, his individual performance
as well as the performance of the entire Executive Board.
Compensation is comprised of (i) a non-performance-related
component, (ii) a performance-related component, and (iii) a
share-based component:
» The non-performance-related component includes a fixed
annual salary and fringe benefits. These benefits comprise
essentially the use of a company car, the payment of insur-
ance premiums, and, in exceptional cases, a tax equalization
amount paid to level different tax rates in the USA and Ger-
many. Our Executive Board members receive no additional
compensation for mandates held within the adidas Group.
2006 2005
Non-performance-related component 2,976 2,998
Performance-related components
(Performance Bonus + LTIP Bonus) 5,837 5,780
Share-based component (MSOP) 603 2,652
Total 9,416 11,430
Executive Board Total Compensation € in thousands