Reebok 2014 Annual Report Download - page 88

adidas Group
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2014 Annual Report
Group Management Report – Our Group
84
2014
Employees
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02.7
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Performance management: To further drive a high-performance culture within the adidas Group,
we use a performance management approach called ‘The Score’. It brings target setting, employee
development and performance appraisal under one common process. While building on our key
values of performance management, The Score also brings focus, simplicity and alignment in
setting team and individual targets. Each employee is evaluated and receives feedback at least
twice a year, and employee development planning is further supported by the process and system
solution.
Succession management: The adidas Group succession management approach aims to ensure
stability and certainty in business continuity. We achieve this through a globally consistent succession
plan which covers successors for director level positions and above, including the Board positions
of the Group. These positions and the respective potential successors are regularly discussed by
senior management and our global HR leadership teams. The succession reviews create a clear
picture of the successors’ readiness and outlines the necessary development actions. Based upon
this information, we ensure individual development plans are in place to prepare successors for
their potential next steps. We also use the successor information to create dynamic talent pools. All
information is consolidated in a succession management risk analysis.
Remuneration system based on performance
We are committed to rewarding our employees with compensation and benefit programmes that
are competitive in the marketplace. Remuneration throughout the Group comprises fixed and
variable monetary compensation, non-monetary rewards, as well as other intangible benefits. The
cornerstone of our rewards programme is our Global Salary Management System, which is used as
a basis for establishing and evaluating the value of employees’ positions and salaries in a market-
driven and performance-oriented way. In addition to a fixed base salary, we offer our employees
various variable compensation components.
Bonus programme: In order to allow our employees to participate in the Group’s success, and to
reward them for their target achievement, we have a global bonus programme. To further drive
our performance culture on the organisational as well as individual level, this programme provides
an incentive influenced by both corporate performance (actual financial results measured against
Group and market targets) as well as individual performance (measured in the performance
management approach, The Score).
Profit participation programme: For employees at our Group headquarters and our other locations
in Germany who do not participate in the bonus programme, we have a profit participation
programme called the ‘Champions’ Bonus’.
Long-term incentive programmes: In order to encourage sustainable financial results, retain
our top leadership and promote continuous commitment, the adidas Group offers a Long-Term
Incentive Plan (LTIP) for leaders and Executive Board members. Other benefits include our 401(k)
retirement plans in the USA and the adidas Group pension plan for our employees in Germany. In
2014, 3,572 employees participated in the latter (2013: 2,315).
Strategic area
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People
Performance-driven remuneration system