Reebok 2009 Annual Report Download - page 44

Commitments to Executive Board
members upon premature end of tenure
If a member of the Executive Board dies
during the term of his service contract,
his spouse, or alternatively any depend-
ent children of the Executive Board
member, receive the pro-rata annual
fixed salary for the month of death and
the following three months but no longer
than until the agreed end date of the
service contract.
Further commitments to Execu-
tive Board members upon the prema-
ture termination of tenure do not exist.
For Herbert Hainer, CEO, whose service
contract has a term of more than three
years, however, the severance payment
relating to payment claims for the
remaining period of his service contract
has been limited to a maximum of twice
the overall annual compensation (Sever-
ance Payment Cap) in case of premature
termination of tenure which is not due to
good cause. In this respect, the overall
annual compensation means his overall
compensation for the last full financial
year prior to his resignation from the
Executive Board as presented in the
compensation report while considering
the expected total compensation for the
current financial year. If the contract is
terminated due to a change of control, a
possible severance payment is limited to
150% of the Severance Payment Cap.
For the other Executive Board members,
who all have service contracts for a dura-
tion of up to three years, no Severance
Payment Caps exist due to the relatively
short contractual terms.
Commitments to Executive Board
members upon regular end of tenure
In case of regular termination of the ser-
vice contract, i.e. in case of non-renewal
of the service contract or termination
due to reaching the retirement age,
the respective Executive Board mem-
ber receives a follow-up bonus up to the
amount of 75% 2 ) , 100% 3 ) or 125% 4 ) of the
Performance Bonus received for the last
full financial year as individually agreed.
The follow-up bonus is payable in two
tranches, 12 and 24 months following
the end of the contract. Instead of the
follow-up bonus, the service contract with
Erich Stamminger contains a severance
payment of 100% of the last annual fixed
salary in the event that adidas AG decides
not to renew his contract although he
would be willing to continue his function
as Executive Board member under the
existing conditions.
No loans granted to Executive No loans granted to Executive
Board membersBoard members
As in the years before, the members
of the Executive Board did not receive
any loans or advance payments from
adidas AG in 2009.
MiscellaneousMiscellaneous
Our Executive Board members do not
receive any additional compensation for
mandates held within the adidas Group.
In the event of claims raised against
members of the Executive Board for
indemnification of losses incurred in con-
nection with their acts and omissions,
the adidas Group’s directors’ and officers’
group liability insurance covers the
personal liability of the Executive Board
members. For cases of damage occurring
after July 1, 2010, there is, for the first
time, a deductible of 10% of the dam-
age up to a maximum of one and a half
times the fixed annual salary for all cases
of damage within one financial year in
accordance with the statutory provisions
and recommendations of the German
Corporate Governance Code see the
Declaration on Corporate Governance including
the Corporate Governance Report, p. 33.
1) Herbert Hainer and Erich Stamminger were both first appointed on April 1, 1997. Robin J. Stalker was first appointed
on January 1, 2001. For Glenn Bennett, instead of his first 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.
2) Glenn Bennett
3) Robin J. Stalker
4) Herbert Hainer
Starting from a base amount totalling
10% of the pensionable income, the pen-
sion entitlement increases by 2% for each
full year of tenure as an Executive Board
member of adidas AG 1 ) 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 pension
entitlement will be in line with the legal
provisions. The dynamisation of current
pension payments is made in accordance
with statutory regulations unless a sur-
plus from the pension fund is used after
the commencement of retirement for an
increase in retirement benefits.
The disability pension amounts to 100%
of the achieved pension entitlements.
The lifelong survivor’s benefits amount
to 50% of the pension entitlements for
the spouse, a half-orphan’s pension of
15% or an orphan’s pension of 30% of
the pension entitlements for dependent
children, in total however not more than
100% of the pension entitlements.
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