Reebok 2007 Annual Report Download - page 36

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ANNUAL REPORT 2007 --- adidas Group TO OUR SHAREHOLDERS - Compensation Report
PAYMENTS TO PENSION FUND / PENSION TRUST FUND
€
in th
ousa
n
ds
COSTS FOR ACCRUED PENSION ENTITLEMENTS 1)
€
in thousand
s
200
7 2006 1)
Herbert Hainer (Chairman and CEO) 24
0
4,490
Glenn Bennett
82
925
Robin J. Stalker 1
20
848
Erich Stamminger 10
3
2,412
Total 545 8,675
1)
This contains a one-time payment into the pension fund for all future pension
entitlements which arose through December 31, 2006.
200
7 2006
Herbert Hainer (Chairman and CEO)
2
15 238
Glenn Bennett
68
70
Robin J. Stalker
161
161
Erich Stamminger
96
108
Total 540 577
1
) This also includes service costs which have arisen with regard to the provisions
f
or pension obli
g
ations in the Consolidated Income Statement
.
OUTSTANDING STOCK OPTIONS EXERCISED IN FULL IN 2007 In 2007, current members of our Executive Board held a total of
2,800 options within the scope of the Management Share Option Plan (MSOP). All options were exercised. Compensation resulting
from the exercise of these options totaled € 514,840. As of December 31, 2007, our Executive Board members no longer hold any
stock options which could still be exercised.
COMMITMENTS TO EXECUTIVE BOARD MEMBERS UPON END OF TENURE Individual agreements have been concluded with our
Executive Board members for severance payment provisions in case of non-continuation of their employment agreements. With
one Executive Board member, compensation for a post-contractual competition prohibition has also been agreed.
- Employment contracts with our Executive Board members contain individual provisions governing severance payments. These
amount to 100 % 2) of the annual fi xed salary as a one-time payment in the event that adidas AG decides not to renew the respective
contract although the Executive Board member would be willing to continue his function as Executive Board member under
the existing conditions. If an Executive Board member dies during his term of offi ce, his spouse will receive a one-time payment
amounting to 25 % of his annual fi xed salary.
- A post-contractual competition prohibition period of six months has been agreed upon with Executive Board member Glenn
Bennett. adidas AG will pay compensation of 100 % of the annual fi xed salary for this period unless adidas AG decides not to insist
upon enforcing this prohibition.
PENSION COMMITMENTS GRANTED When members of our Executive Board reach the individually agreed retirement age of
65 years and resign from their Executive Board position, they are entitled to receive a retirement pension. In addition, each is
entitled to receive a disability pension should he become incapacitated before reaching retirement age. Further, when an
Executive Board member dies, a widow’s pension will be paid.
- Retirement pension: The pension allowance is calculated as a percentage of the pensionable income, which currently equals the
annual fi xed salary. Starting from a base amount totaling 10 % of the pensionable income, the pension entitlement increases by
2 % for each full year of tenure as an Executive Board member of adidas AG 3) and can reach a maximum level of 40 % of pension-
able income. In the event of the retirement of an Executive Board member prior to reaching the statutory retirement age, the non-
forfeiture of the pension entitlement will be in line with the legal provisions. The increase of current pension payments or pension
entitlements is index-linked in accordance with German law.
- Disability pension: The disability pension amounts to 100 % of pension entitlements.
- Widow’s pension: When an Executive Board member dies, his surviving spouse receives an annuity amounting to 50 % of his
pension entitlements.