Reebok 2006 Annual Report Download - page 35

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031
Compensation Report ›
» The performance-related component, which comprises
the largest portion of Executive Board compensation, consists
of a Performance Bonus as well as a bonus paid on the basis
of the Long-Term Incentive Plan. Both bonus systems are
designed to provide a direct incentive for our Executive Board
members to achieve defined targets and to support sustain-
able value-oriented management.
› The amount of the Performance Bonus is linked to the fixed
annual salary and depends on the individual performance of
the respective Executive Board member as well as on the
Group’s results. The Performance Bonus is payable at the
end of each year upon determination of target achievement.
› The Long-Term Incentive Plan 2006/2008 (LTIP Bonus
2006/2008) is the second component of Executive Board vari-
able compensation. Its payout depends upon the attainment
of certain cumulative earnings improvements (basis: income
before taxes – IBT) during the three-year period from 2006 to
2008. If targets are met, payment is due following the adop-
tion of the consolidated financial statements for the period
ending December 31, 2008.
» The share-based component is comprised of compen-
sation through the Management Share Option Plan (MSOP),
which is calculated on the basis of a performance discount
consisting of an absolute and a relative performance com-
ponent. Option rights, which were issued in several tranches
under the share option plan adopted by the 1999 Annual Gen-
eral Meeting, are exercisable over a period of five years fol-
lowing a two-year vesting period, provided that at least one of
the two performance targets, i.e. absolute performance and
relative performance, has been attained (see Note 33, p. 178).
Executive Board members were last granted options under
the Management Share Option Plan (MSOP) in August 2002.
No new share option plan has been proposed to the Annual
General Meeting.
Share-based
Non-performance- Performance- component
related component related component (MSOP) Total
Fixed Fringe Performance LTIP Bonus
salary benefits Bonus 2006/2008
Herbert Hainer (Chairman of the Executive Board) 1,120 23 1,500 800 343 3,786
Glenn Bennett 468 2141) 637 400 0 1,719
Robin J. Stalker 485 12 600 400 260 1,757
Erich Stamminger 600 54 1,100 400 0 2,154
Total 2,673 303 3,837 2,000 603 9,416
1) Also contains a tax adjustment due to different tax rates in Germany and the USA.
Executive Board Members’ Total Compensation in 2006 € in thousands
Pension regulation Service cost
Herbert Hainer (Chairman of the Executive Board) 10% of the pensionable income
+ 2% for each full year of tenure
starting from April 1, 1997 238
Glenn Bennett 20% of the pensionable income
+ 2% for each full year of tenure
starting from January 1, 2000 70
Robin J. Stalker 10% of the pensionable income
+ 2% for each full year of tenure
starting from January 1, 2001 161
Erich Stamminger 10% of the pensionable income
+ 2% for each full year of tenure
starting from April 1, 1997 108
Total 577
Executive Board Pension Commitments in 2006 € in thousands