Reebok 2009 Annual Report Download - page 43

TO OUR SHAREHOLDERS Compensation Report 39
2) Exception for Glenn Bennett and Robin J. Stalker, who, in the financial year 2009, abstained from the contractually agreed increase
in their annual fixed salaries for the calendar year 2009 as of the point of renewing their contract on March 6, 2009.
Base amount for Glenn Bennett: $ 660,000 (= € 474,000).
Base amount for Robin J. Stalker: € 550,000.
Executive Board compensation in detailExecutive Board compensation in detail
The total compensation paid to our
Executive Board in the financial year
2009 amounted to € 10.494 million
(2008: € 8.416 million). The increase
in comparison to the previous year
results from higher contributions to
the reserves for the LTIP 2009/2011.
These are based on the new Executive
Board compensation structure which in
accordance with the statutory require-
ments is oriented towards sustain-
able corporate development. The new
compensation structure provides for
an increase in the share of the LTIP
Bonus in the total compensation and a
decrease in the weighting of the Per-
formance Bonus. For 2009, however,
the Performance Bonus laid down in
the prior year is applicable, which had a
higher share in the total compensation
than the LTIP Bonus. In absolute terms,
the Performance Bonus decreased in
2009, despite the significant reduction of
net debt, due to the decline in consoli-
dated net income.
Taking into account the compensa-
tion structure of the adidas Group and
relevant benchmarks, the review of the
compensation system and the individual
compensation components in the finan-
cial year 2009 convinced the Supervisory
Board that all compensation elements,
both individually and in total, are appro-
priate and aligned with sustainable devel-
opment of the company.
Criteria for the appropriateness of
compensation are the tasks and contri-
bution of the respective Executive Board
member to the Group’s success, his indi-
vidual 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. The variable compensa-
tion components are designed in such a
way that the achievement of the sustain-
able targets set by the LTIP 2009/2011
poses a significantly higher incentive for
our Executive Board members than the
achievement of the targets necessary
for granting the Performance Bonus.
Corresponding contractual regulations
ensure that this weighting will also be
maintained in the future. Through its
three-year term and the concrete defini-
tion of the performance criteria, the LTIP
2009/2011 contains the required peren-
nial basis for determination.
Benefits in case of resignation Benefits in case of resignation
from officefrom office
The following description of the benefits
which our Executive Board members will
receive in the event of termination of their
Executive Board mandate already takes
into account the service contract con-
cluded with our CEO in December 2009,
which is effective as of March 6, 2010.
Pension commitments
The individual contractual pension com-
mitments entitle our Executive Board
members to a lifelong retirement pension
or survivor’s benefits upon reaching the
age of 65 years, in case of permanent
occupational disability or death.
The level of retirement pension pay-
ment is determined as a percentage of
the pensionable income which currently
corresponds to the fixed annual salary
stated in the adjacent table.2)
N °-
01
N °-
02
EXECUTIVE BOARD TOTAL COMPENSATION IN 2009
€ IN THOUSANDS
EXECUTIVE BOARD TOTAL COMPENSATION IN 2008
€ IN THOUSANDS
Non-performance-related
compensation components
Performance-
related
compensation
component
Compensation
component
with long-term
incentive effect 1) Total
Annual
fixed salary Other benefits Performance Bonus LTIP Bonus 2009/2011
Herbert Hainer (CEO) 1,250 27 1,512 1,400 4,189
Glenn Bennett 2 ) 431 25 581 700 1,737
Robin J. Stalker 500 13 612 700 1,825
Erich Stamminger 700 36 1,107 900 2,743
Total 2,881 101 3,812 3,700 10,494
1) The indicated amount corresponds to the amount placed in reserves based on the forecasted degree of target achievement as at the balance
sheet date. The amount of a possible payout is not specified. Only if targets are met will payment be due following the approval of the annual
consolidated financial statements for the period ending on December 31, 2011.
2) In accordance with Glenn Bennett’s contract, the following compensation components were granted in US dollars: fixed annual salary
$ 600,000, other benefits $ 35,000, Performance Bonus $ 810,000. An exchange rate of 1.3932 $/€ (annual average rate 2009) was used as
the basis for calculation.
Non-performance-related
compensation components
Performance-
related
compensation
component
Compensation
component
with long-term
incentive effect Total
Annual
fixed salary Other benefits Performance Bonus LTIP Bonus 2006/2008
Herbert Hainer (CEO) 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: fixed annual salary
$ 600,000, other benefits $ 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.