Reebok 2008 Annual Report Download - page 35

adidas Group Annual Report 2008 031
Appropriate Executive Board compensation
The overall compensation paid to our Executive Board in the fi nancial year 2008 amounted to
€ 8.416 million (2007: € 10.612 million). The Supervisory Board considers the variable com-
pensation components to be structured in such a way that they form a considerable incentive
to our Executive Board members and thus enduringly support value-oriented management. All
compen sation elements are appropriate both individually and in total. Criteria for the appropri-
ateness of compensation are the tasks and contribution of the respective Executive Board mem-
ber to the Group’s success, his individual performance as well as that of the entire Executive
Board. In addition, the Group’s size and global orientation as well as its economic situation and
prospects are taken into consideration.
Pension commitments
There are individual contractual pension commitments for the members of our Executive Board.
Upon reaching the age of 65, the individual pension commitments provide for a retirement pen-
sion and, in case of resignation from active offi ce due to occupational incapacity or disability,
they provide for a disability pension. Furthermore, a widow’s pension is paid upon the death of a
former member of the Executive Board.
— Retirement pension: The pension allowance of an Executive Board member is calculated as
a percentage of the pensionable income, which currently equals the fi xed annual salary. Starting
from a base amount totalling 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 2) and can reach
a maximum level of 40% of pensionable income. In the event of the retirement of an Executive
Board member prior to reaching the statutory retirement age, the non-forfeiture of the pen-
sion entitlement will be in line with the legal provisions. The dynamisation of current pension
payments is made in accordance with German law.
— Disability pension: The disability pension amounts to 100% of pension entitlements.
— Widow’s pension: If an Executive Board member dies, his surviving spouse receives an
annuity amounting to 50% of his pension entitlements.
2) Herbert Hainer and Erich Stamminger were both fi rst appointed on April 1, 1997. Robin J. Stalker was fi rst appointed on
January 1, 2001. For Glenn Bennett, instead of his fi rst appointment date (April 1, 1997), January 1, 2000, is used for the
calculation of his pension entitlements. His base amount totals 20% of the pension entitlement.
Executive Board total compensation in 2008
€ in thousands
Non-performance-related
compensation components
Performance-
related
compensation
component
Compensation
component
with long-term
incentive effect Total
Fixed annual
salary
Other
benefi ts
Performance
Bonus
LTIP Bonus
2006 /2008
Herbert Hainer
(CEO and Chairman) 1,250 26 1,680 480 3,436
Glenn Bennett 1) 408 13 612 240 1,273
Robin J. Stalker 500 11 680 240 1,431
Erich Stamminger 700 106 2) 1,230 240 2,276
Total 2,858 156 4,202 1,200 8,416
1) In accordance with Glenn Bennett’s contract, the following compensation components were granted in US dollars:
fi xed annual salary $ 600,000, other benefi ts $ 19,000, Performance Bonus $ 900,000. An exchange rate of 1.4702 $ /€
(annual average rate 2008) was used as the basis for calculation.
2) Also contains a tax adjustment due to different tax rates in Germany and the USA.
Executive Board total compensation in 2007
€ in thousands
Non-performance-related
compensation components
Performance-
related
compensation
component
Compensation
component
with long-term
incentive effect Total
Fixed annual
salary
Other
benefi ts
Performance
Bonus
LTIP Bonus
2006 /2008 1)
Herbert Hainer
(CEO and Chairman) 1,120 23 1,680 1,360 4,183 2)
Glenn Bennett 3) 438 238 4) 657 680 2,013
Robin J. Stalker 500 11 680 680 1,871
Erich Stamminger 600 35 1,230 680 2,545
Total 2,658 307 4,247 3,400 10,612 2)
1) Payment of this bonus is made upon achievement of LTIP targets and after approval of the consolidated fi nancial
statements for the period ending on December 31, 2008.
2) Due to the adoption of DRS17, the amounts do not include the amount of € 515,000, which equals the compensation
resulting from the exercise of share options within the scope of the MSOP.
3) In accordance with Glenn Bennett’s contract, the following compensation components were granted in US dollars:
fi xed annual salary $ 600,000, other benefi ts $ 326,595, Performance Bonus $ 900,000. An exchange rate of
1.3709 $ /€ (annual average rate 2007) was used as the basis for calculation.
4) Also contains a tax adjustment due to different tax rates in Germany and the USA.