Reebok 2013 Annual Report Download - page 60

adidas Group
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2013 Annual Report
To Our Shareholders
56
2013
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01.9
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Compensation Report
Following commencement of retirement, ongoing pensions are adjusted
in line with the development of state pensions.
Herbert Hainer, Roland Auschel and Erich Stamminger, who belonged to
the group of senior executives of adidas AG prior to their Executive Board
appointments, will at the time of their retirement receive additional
payments from the “Supplementary Retirement Provisions for Senior
Executives”. Until their appointment as Executive Board members,
adidas AG had contributed pension components for Herbert Hainer,
Roland Auschel and Erich Stamminger under these supplementary
provisions which were introduced for all senior executives of the
company in 1989.
If an Executive Board member dies during his term of office, his spouse
or partner receives or, alternatively, any dependent children receive,
in addition to pension benefits, 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.
Commitments to Executive Board members upon
premature termination of tenure
Executive Board service contracts are usually agreed with a contractual
term of three years. This term will be shortened accordingly if the
Executive Board member reaches the age of 65 prior to expiration.
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In the case of premature termination of tenure by mutual consent
and in the absence of good cause, the Executive Board service
contracts for Glenn Bennett, Roland Auschel, Robin J. Stalker and
Erich Stamminger do not provide for compensatory payments. Unless
agreed otherwise on an individual basis, the departing Executive
Board member receives the annual fixed salary and any Performance
Bonus, both paid pro rata temporis up to the day he leaves office,
in addition to a follow-up bonus
6)
. This is paid in two tranches,
12 and 24 months following the end of the contract. There is no
claim to a follow-up bonus if the Executive Board service contract is
terminated by release. In general, any claim to an LTIP Bonus payout
becomes void unless otherwise agreed on an individual basis. Due
to the relatively short three-year contractual terms of these service
contracts, a severance payment cap is not provided.
The service contract of Herbert Hainer, on the other hand, with
a contractual term of more than three years, does provide for a
compensatory payment of a maximum of twice the overall annual
compensation in the event of premature termination by mutual
consent, limited to payment claims for the remaining period of his
service contract (Severance Payment Cap). In this respect, the overall
annual compensation means the overall compensation paid, as
outlined in the Compensation Report, for the last full financial year
prior to resignation from the Executive Board while considering the
expected total compensation for the current financial year.
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If Herbert Hainer’s service contract is terminated due to a change
of control, his potential severance payment is limited to 150% of the
Severance Payment Cap. The other service contracts do not include
such provisions.
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In case of regular termination of the service contract, i.e. in case of
non-renewal of the service contract or termination upon reaching
the age of 65, the respective Executive Board member is entitled to
receive not only his annual fixed salary on a pro rata basis up to the
day he leaves office, but also a potential prorated Performance Bonus
and LTIP Bonus. Additionally, he is entitled to the follow-up bonus as
individually agreed.
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Pension commitments in the 2013 financial year (€ in thousands)
Pension cost Accumulated pension obligation
for all pension commitments
excluding deferred compensation 1)
Executive Board members incumbent as at December 31, 2013 2013 2012 2013 2012
Herbert Hainer (CEO) 332 279 9,291 8,718
Roland Auschel 98 — 1,461 1,282
Glenn Bennett 113 86 2,520 2,110
Robin J. Stalker 241 180 2,859 2,740
Erich Stamminger 157 129 4,714 4,774
Total 941 674 20,845 19,624
1) Total deferred compensation amounts to € 127,770 (2012: € 125,741), implemented for Robin J. Stalker.
6) This bonus amounts to 75% for Roland Auschel and Glenn Bennett, 100% for Robin J. Stalker,
and 125% each for Herbert Hainer and Erich Stamminger and is based on the Performance
Bonus granted to the respective Executive Board member for the last full financial year.