Reebok 2015 Annual Report Download - page 44

TO OUR SHAREHOLDERS
Compensation Report
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At the Executive Board member’s choice, the payout of all pension benefits is made either as a one-time
payment or in up to ten equal annual instalments. If no choice is made by the Executive Board member,
the pension benefits are paid out in three equal annual instalments.
In case of a payout in three or ten annual instalments, the still outstanding instalments of the benefit
phase bear the maximum interest rate of the first due date of the pension benefits for the calculation of
the actuarial reserve according to the German Actuarial Reserve Ordinance (DeckRV) for life insurance
companies.
As part of the conversion of the defined benefit pension plans of Roland Auschel and Eric Liedtke to defined
contribution pension plans, the benefit entitlements earned up until the conversion date (December 31, 2014)
were credited to the new defined contribution pension plans as a starting balance.
Insolvency insurance for the pension commitments granted to the Executive Board members as of
October 1, 2013 is ensured by the integration of the pension plans in the existing trust model, the Contractual
Trust Arrangement (CTA).
Herbert Hainer, Roland Auschel, Eric Liedtke and Robin J. Stalker, 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 and Robin J. Stalker under these supplementary provisions which were introduced
for all senior executives of the company in 1989.
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 cap potential compensatory payments at a maximum of twice the overall annual compensation,
not exceeding payment claims for the remaining period of the service contract (Severance Payment
Cap)
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. In this context, the overall annual compensation means the Executive Board member’s overall
compensation paid for the last full financial year prior to departure from the Executive Board. In calculating
the overall compensation, a multi-year compensation component and the service costs will only be taken
into consideration with the proportion attributable to the last full financial year prior to departure. When
6 Agreement on a Severance
Payment Cap in Roland Auschel’s
Executive Board service contract
only effective as of January 1,
2016.
01PENSION COMMITMENTS IN 2015 FINANCIALYEARIN €
Service cost Accumulated pension obligation for the pension
commitments excluding deferred compensation
Executive Board members incumbent as at December 31, 2015 FY 2014 FY 2015 FY 2014 FY 2015
Herbert Hainer (CEO) 330,836 428,648 12,543,634 11,983,870
Roland Auschel 390,536 361,000 411,198 738,627
Glenn Bennett 1756,632 251,162 5,324,430 5,778,313
Eric Liedtke 315,951 336,000 334,503 724,482
Robin J. Stalker 1907,791 379,868 5,144,110 5,051,190
Total 2,701,746 1,756,678 23,757,875 24,276,482
1 Based on the amendment of the Pension Agreement effective March 6, 2015, the service cost in the 2014 financial year comprised the 2014 service cost and the 2014 past service cost.