Reebok 2007 Annual Report Download - page 75

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ANNUAL REPORT 2007 --- adidas Group
02
EMPLOYEE DEVELOPMENT BASED ON THREE SUCCESS
DRIVERS Just like athletes, our Group’s employees need a
training plan to build on their strengths, improve their tech-
nique and overcome their own challenges on the way to reach
their goals. Our Group’s employee development program
incorporates behavioral, managerial, technical and language
training for different target groups. We base our training
efforts on three success drivers:
- Leadership Excellence: All members of senior and middle
management are encouraged to instill a performance culture
in our teams by acting as role models.
- Performance Management: Through our global PEP
(Performance Evaluation and Planning) tool we not only
measure our employees’ job performance but also set indi-
vidual business targets and plan training and development
activities. We offer targeted support (e. g. basic skill training
in team development or business coaching) for both individ-
ual and team performance improvement.
- Talent Management: With specifi cally designed talent
manage ment tools and processes, we identify employees at
all levels who have the potential to become leaders in our
organization. In order to prepare them for new and more com-
plex future roles, they participate in targeted development
programs for various levels within the organization.
In 2007, we intensifi ed our activities in performance and talent
management. We enhanced our Group-wide PEP system,
to focus more on performance evaluation and career develop-
ment. Further, we introduced a new Advanced Management
Training program for employees at a department head position
or higher. The program’s goal is to enable them to continually
improve their skills in change management, strategic thinking,
team leadership and coaching.
PERFORMANCE AT THE CORE OF REMUNERATION SYSTEM
We are committed to rewarding our employees with effective
compensation and benefi t programs that are competitive in the
marketplace. Remuneration throughout the Group comprises
fi xed and variable monetary compensation, non-monetary
rewards, as well as other intangible benefi ts. The corner-
stone of our rewards program is our Global Salary Manage-
ment System (GSMS). It is used as a basis to set the value of
employees’ positions and salaries in a clear, market-driven
and performance-oriented way. GSMS provides the global
framework for managing base compensation in the adidas
Group and for making performance-related base salary adjust-
ments. In addition to a fi xed base salary, we also offer our
employees various variable compensation components:
- Bonus Program: Within the adidas Group, certain employees
are eligible for a bonus based on their respective job grade
level as specifi ed in GSMS. Our Group’s bonus program com-
bines individual (measured in the PEP process) and corporate
performance (actual fi nancial results measured against Group,
brand, division and / or business unit targets).
- Profi t Sharing: For employees who are not eligible for the
bonus program, profi t sharing is used as an incentive to reward
the achievement of the Group’s profi t target. In 2007, for
example, we again paid a one-time gratifi cation to employees
in Germany.
- Additional compensation components for senior manage-
ment and Executive Board members include Long-Term
Incentive Programs (LTIP) and a Management Share Option
Plan (MSOP).  see Compensation Report, p. 030
Other benefi ts include our 401-K pension plans in the USA
and the adidas pension plan for our employees in Germany.
In 2007, 1,396 employees participated in the latter, which
represents an increase of 21 % compared to the previous year.
Other Group subsidiaries also grant a variety of additional
benefi ts to employees depending on locally defi ned practices
and country-specifi c norms such as discount allowances that
provide our employees with the possibility to purchase dis-
counted products in our own stores. In 2007, we further refi ned
and optimized our Group’s rewards programs. We completed
the implementation of the Group’s compensation system
at Reebok and we continued to realize cost synergies (e. g.
harmonization of the payroll system), particularly in the USA.