Reebok 2015 Annual Report Download - page 42

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Compensation Report
38
1
For the LTIP 2015/2017, the Supervisory Board determined the following performance criteria for the
three-year period:
•achievement of a defined net income from continuing operations,
•increase in the US market share measured/assessed by the increase in market shares of adidas
footwear and an improvement of the brand’s popularity,
•increase in the adidas AG share price over three years and relative outperformance of the adidas AG
share compared to the DAX-30 price index,
•increase in profitability of the retail segment,
•
improvement of sustainability measured/assessed by the improvement of employee satisfaction and
an increase in the percentage of female representation in management positions within the Group.
In calculating the amount of the LTIP Bonus, the degree of target achievement determined for each
individual performance criterion is weighted according to the percentage value of the respective
performance criterion. The development of the individual performance criteria over the three-year
period from 2015 to 2017 is decisive for the assessment of target achievement. The sum of the weighted
degrees of target achievement of the performance criteria is multiplied by the individual LTIP target
amount for each Executive Board member.
For the ultimate evaluation of the Executive Board’s performance, qualitative criteria determined by the
Supervisory Board when establishing the LTIP 2015/2017, such as the further development of company
health management as well as occupational health and safety, are also taken into account. The LTIP
Bonus is capped at a maximum of 150% of the individual LTIP target amount. If the overall degree of
target achievement lies at or below 50%, the Executive Board member is not entitled to the LTIP Bonus.
If an Executive Board member takes or leaves office during the term of the LTIP 2015/2017 (Performance
Period), the LTIP Bonus is generally calculated on a pro rata basis. In certain cases defined in the Terms
& Conditions of the LTIP 2015/2017, entitlement to the payout of an LTIP Bonus is generally forfeited,
unless the Supervisory Board determines otherwise at its equitable discretion.
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 are generally capped at 5% of the overall compensation comprising the
annual fixed salary and a (possible) Performance Bonus and primarily consist of paying for or providing
the monetary value of the provision of a company car, the costs for group accident insurance as well as
contributions to standard insurance schemes
2. In addition, in the case of extraordinary performance on
the part of an Executive Board member that is not related to the performance criteria decisive for granting
the Performance Bonus or LTIP Bonus, the Supervisory Board may, at its dutiful discretion, decide on
the granting of and on the potential amount of a special bonus. Such special bonus is limited to 100% of
the annual fixed salary for the calendar year for which the special bonus is granted. The Executive Board
members do not receive any additional compensation for mandates within the adidas Group. The Executive
Board members have not received any loans or advance payments from adidas AG.
PENSION COMMITMENTS
All active members of the Executive Board have individual contractual defined benefit pension plans which
are calculated based on the length of appointment to the Executive Board as a percentage of contractually
agreed pensionable income.
Executive Board members who have been appointed since October 1, 2013, or will be appointed in the
future will be granted defined contribution pension plans with effect from January 1, 2015. The defined
benefit pension plans granted to Roland Auschel and Eric Liedtke as of their appointments were converted
to defined contribution pension plans with effect from January 1, 2015.
2 Agreement on a cap for other
benefits in Roland Auschel’s
Executive Board service contract
only effective as of January 1,
2016.