Reebok 2007 Annual Report Download - page 72

068
ANNUAL REPORT 2007 --- adidas Group GROUP MANAGEMENT REPORT – OUR GROUP -- Corporate Functions - Employees
EMPLOYEES At the adidas Grou
p
, we know
that our people are crucial to our success.
Becom
i
n
g
the
g
lobal leader
i
n the sport
i
n
g
g
oods industry depends on the per
f
ormance,
p
otential, enthusiasm and dedication o
f
our
employees. We promote a performance
culture and therefore link employee compen-
s
ation to
G
roup and individual achievements.
W
e a
i
m to develo
p
our em
p
loyees w
i
th
o
pportunities
f
or career progression, while
s
triving to promote a culture that celebrates
o
ur d
i
vers
i
ty and promotes
g
lobal mob
i
l
i
ty.
EXPANSION OF GLOBAL EMPLOYEE BASE CONTINUES On
December 31, 2007, the Group had 31,344 employees, which
represents an increase of 19 % versus the previous year’s
level of 26,376. This development is primarily related to new
employees in the adidas segment in emerging markets as
well as own- retail activities. Personnel expenses increased
18 % to € 1.279 billion in 2007 from € 1.087 billion in 2006,
 see Note 25, p. 184 representing 30 % of the Group’s total oper-
ating expenses (2006: 29 %) and 12 % of Group sales (2006: 11 %).
ADIDAS SEGMENT DRIVES EMPLOYEE GROWTH The develop-
ment of our employee numbers varied signifi cantly from a
brand perspective. The number of employees at the adidas
brand increased 25 % to 18,678 at the end of 2007 (2006:
14,906), mainly driven by the brand’s strong expansion, espe-
cially in own retail and in the emerging markets of Eastern
Europe (e. g. Russia), Asia and Latin America. Staff at Reebok
declined 11 %, attributable to a shift in the workforce to the
Group functions and adidas brand as well as the elimination of
duplicative positions. Hence, the Reebok segment comprised
6,751 employees at year-end (2006: 7,545). At TaylorMade-
adidas Golf, the number of employees increased by 2 % to
1,393 (2006: 1,368). The number of employees working in our
Group functions increased sharply by 77 % to 4,522 (2006:
2,552). The main reason for this development was the expan-
sion of the Sports Licensed Division to a cross-brand corporate
license department, including licensed products from brand
adidas (e. g. NBA jerseys) and Reebok (e. g. NHL and NFL
jerseys). Excluding this effect, employment within our Group
functions increased 23 %.
GLOBAL MOBILITY ACTIVELY PROMOTED Our employees work
at more than 150 locations around the world. We actively
encourage global mobility and offer our employees the oppor-
tunity to go on international assignments. At the end of 2007,
47 % of our staff was employed in Europe (2006: 42 %), 31 % in
North America (2006: 35 %), 18 % in Asia (2006: 19 %) and 4 % in
Latin America (2006: 4 %). To support relocating professionals
and their families in new living and working environments, we
provide, for example, relevant language and cultural training.
NUMBER OF EMPLOYEES 1)
2003
2004 2)
2005 2)
2006 3)
2007
3
)
1) At year-end.
2) Fi
g
ures refl ect continuin
g
operations as a result of the divestiture
o
f the Salomon business se
g
ment
.
3
)
Including Reebok business.
14,219
15,935
26,376
3
1,
3
44
15,686
EMPLOYEES BY REGION
EMPLOYEES BY SEGMENT
Latin America 4
%
Asia 18
%
North America
3
1
%
4
7
%
Europe
adidas Golf
4
%
Reebok
2
2 %
6
0
%
adidas
TaylorMade-
HQ functions 14
%