Reebok 2014 Annual Report Download - page 36

32
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
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.
In case of premature termination of tenure in the absence of good cause, the Executive Board
service contracts provide for compensatory payments of a maximum of twice the overall annual
compensation, limited to payment claims for the remaining period of the service contract (Severance
Payment Cap) 5). In this respect, the overall annual compensation means the overall compensation
paid for the last full financial year prior to resignation from the Executive Board as outlined in the
Compensation Report, excluding service costs and follow-up bonus, while considering the expected
total compensation for the current financial year. If the service contract is terminated due to a
change of control, a possible severance payment is limited to 150% of the Severance Payment Cap.
Unless otherwise agreed, upon 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 departing Executive Board
member is entitled to receive not only his annual fixed salary on a pro rata basis up to the date on
which he leaves office, but also a potential pro-rated Performance Bonus and LTIP Bonus as well
as an individually agreed follow-up bonus 6). The follow-up bonus is paid in two tranches, 12 and
24 months following the end of the contract 7).
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Pension commitments (€)
Service cost Accumulated pension obligation
for all pension commitments
excluding deferred compensation
Executive Board members incumbent as at December 31, 2014 2014 2013 2014 1) 2013 2)
Herbert Hainer (CEO) 330,836 331,765 12,671,309 9,291,353
Roland Auschel 390,536 97,612 2,177,675 1,460,813
Glenn Bennett 3) 756,632 112,614 5,324,430 2,520,181
Eric Liedtke 315,951 – 658,518 –
Robin J. Stalker 3) 907,791 240,980 5,430,974 2,858,950
Erich Stamminger 4) 147,679 157,369 6,122,065 4,713,548
Total 2,849,425 940,340 32,384,971 20,844,845
1) Total deferred compensation amounted to € 719,324 (2013: € 127,770), implemented for Glenn Bennett in the amount of $ 754,753 (annual average rate 2014: 1.3296 $/€) and
for Robin J. Stalker in the amount of € 151,670.
2) Total deferred compensation amounted to € 127,770, implemented for Robin J. Stalker.
3) The service cost increased effective March 6, 2015 due to the amendment of the Pension Agreement comprising the 2014 service cost and the 2014 past service cost.
4) Pro rata temporis until the date of resignation effective March 6, 2014.
5) A corresponding provision will be added to
Roland Auschel’s service contract upon its
renewal.
6) This bonus amounts to 75% for Roland Auschel,
Glenn Bennett and Eric Liedtke, 100% for
Robin J. Stalker and 125% 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.
7) There is no claim to a follow-up bonus if the
Executive Board service contract is terminated
by release or for good cause.