Reebok 2014 Annual Report Download - page 37

33
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
The service contract of Erich Stamminger was terminated by mutual consent effective March 6, 2014.
Until that date, he was granted the contractual payments. In connection with the mutual termination
of his Executive Board mandate, Erich Stamminger received a Performance Bonus amounting to
€ 482,710 for the 2013 financial year. In view of the short term until his departure, no Performance
Bonus was granted for the 2014 financial year. It was further agreed with Erich Stamminger that
he will receive two thirds of the LTIP Bonus which the Supervisory Board resolved in February 2015
assuming his participation in the Plan from January 1, 2012 until December 31, 2014. In accordance
with his service contract, Erich Stamminger will receive 75% and 50% of the Performance Bonus
granted to him for the 2013 financial year at the end of March 2015 and March 2016, respectively, i.e.
€ 362,032 and € 214,355. Erich Stamminger agreed not to work for a key competitor of the adidas
Group in the period until July 8, 2014. In accordance with the provisions of his service contract,
he was paid compensation in the amount of € 104,530 gross for this post-contractual competition
prohibition. The monthly compensatory payment amounts to 50% of the last fixed monthly salary.
The claims to pension payments deriving from the adidas Management Pension Plan and the
pension commitment dated March 6, 1997, as amended on March 1, 2011, remain unaffected.
Overall compensation 2014 in accordance with the German Corporate
Governance Code (the ‘Code’)
Based on the Supervisory Board’s determination outlined above, the overall compensation of the
Executive Board for the 2014 financial year amounts to € 17.083 million (2013: € 6.500 million).
Although the Executive Board was granted a Performance Bonus and LTIP Bonus well below the
individual target bonuses as the targets set for the 2014 Performance Bonus and the LTIP Bonus
were not achieved, the overall compensation increased significantly compared to the 2013 financial
year. This increase is attributable to the payout of the LTIP Bonus resulting from the LTIP 2012/2014
measured over a three-year period and to the increased number of Executive Board members. In
addition, the service costs for the pension commitments of Glenn Bennett and Robin J. Stalker
increased, as the targeted individual pension level was raised effective March 6, 2015.
The recommendation of the Code to individually disclose the compensation components for each
Executive Board member and to use the sample tables attached to the Code is implemented in the
following.
Benefits granted in accordance with the Code
In the following table, the benefits granted for the 2013 and 2014 financial years are disclosed
including other benefits and service costs, and also including the maximum and minimum
achievable compensation.
In accordance with the requirements of the Code, the Performance Bonus is disclosed with the
amount granted in case of 100% target achievement. Pursuant to the recommendations of the
Code, the LTIP Bonus resulting from the LTIP 2012/2014 measured over a three-year period is to be
indicated with the pro rata temporis target amount of an ‘average probability scenario’ at the time
of granting, whereas adidas AG takes the 100% target amount as the basis.
see Table 03