Reebok 2014 Annual Report Download - page 35

31
2014
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01.6
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Compensation Report
To Our Shareholders
adidas Group
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2014 Annual Report
Other benefits and additional commitments
The Executive Board members are granted other minor benefits which are individually taxed in
accordance with applicable law. These benefits primarily consist of paying for, or providing the
monetary value of, non-cash benefits and other benefits such as the provision of a company car and
contributions to standard insurance schemes. The Executive Board members do not receive any
additional compensation for mandates within the adidas Group. The Executive Board members did
not receive any loans or advance payments from adidas AG.
Pension commitments
All members of the Executive Board have individual contractual pension commitments which
are calculated based on the length of appointment to the Executive Board as a percentage of
contractually agreed pensionable income.
The amount of pensionable income for the members of the Executive Board currently equals the
individual fixed annual salary indicated in the table ‘Benefits granted’. Starting from a base amount
totalling 10% of the respective pensionable income, a module of two percentage points 2) 3) of the
pensionable income is formed for each full year of tenure as an Executive Board member.
The Supervisory Board has, as its targeted level of provision regarding pension commitments for
members of the Executive Board, determined a pension claim amounting to a maximum of 40% 4)
of an Executive Board member’s pensionable income. Following the Executive Board member’s
departure from the company, benefit payments are made on a monthly basis
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as a retirement pension upon reaching the age of 65, or
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as a disability pension in the event of occupational or general disability for medical reasons, for
no longer than up to the point a retirement pension is paid, amounting to the pension entitlement
reached at the point the respective pension became payable;
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as survivors’ benefits upon the death of an Executive Board member, providing the spouse or
partner with 50% of the pension entitlements up to this point and, if applicable, 15% of the
pension entitlements up to this point for each dependent half-orphan or 30% for each dependent
orphan. Taken together, survivors’ benefits may not exceed the deceased Executive Board
member’s total pension entitlement. If survivors’ entitlements exceed the pension entitlement,
benefits for dependent children are reduced proportionately.
In the event that an Executive Board member leaves the company prior to reaching retirement
age, the non-forfeiture of the pension entitlement will be in line with legal provisions. The pension
entitlement is not, as legally envisaged, reduced pro rata temporis, i.e. it amounts to at least the
base amount of the pension commitment made to the Executive Board member, plus the pension
modules accumulated annually during the term of office.
Following commencement of retirement, ongoing pensions are adjusted in line with the development
of state pensions.
Herbert Hainer, Roland Auschel, Eric Liedtke, Robin J. Stalker 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 ‘adidas Management
Pension Plan’. Until their appointment as Executive Board members, adidas AG had contributed
pension components for Herbert Hainer, Roland Auschel, Eric Liedtke, Robin J. Stalker and Erich
Stamminger under these supplementary provisions which were introduced for all senior executives
of the company in 1989.
see Table 01
2) Initial appointment of Herbert Hainer and Erich
Stamminger: effective March 6, 1997; deviating
provision for Glenn Bennett: instead of his initial
appointment date (effective March 6, 1997),
January 1, 2000 is used for the calculation of
his pension entitlements with a base amount of
20% of pensionable income; initial appointment
of Robin J. Stalker: effective January 30, 2001;
initial appointment of Roland Auschel: effective
October 1, 2013; initial appointment of Eric
Liedtke: effective March 6, 2014.
3) Increase of the annual pension components
of Glenn Bennett and Robin J. Stalker to three
percentage points of the pensionable income
effective March 6, 2015.
4) Increase of the targeted provision level of Glenn
Bennett and Robin J. Stalker to a pension
entitlement of a maximum of 50% effective
March 6, 2015.