Reebok 2015 Annual Report Download - page 45

TO OUR SHAREHOLDERS
Compensation Report
41
1
determining the overall compensation, a possible follow-up bonus
7
is not included, but the expected overall
compensation for the current financial year is considered, taking into account the outlined provisions.
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.
COMMITMENTSTO EXECUTIVE BOARD MEMBERS UPON REGULAR
TERMINATION OF TENURE
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 a pro-rated LTIP Bonus as well as, under
certain circumstances, a follow-up bonus 7. It is payable in two tranches, 12 and 24 months following the
end of the contract. There is no entitlement to a follow-up bonus if the service contract expires after release
from service with continued compensation or if it is terminated for good cause.
OVERALLCOMPENSATION FOR 2015 IN ACCORDANCE WITH THE CODE
Based on the Supervisory Board’s determination outlined above, the overall compensation of the Executive
Board for the 2015 financial year amounts to € 9.171 million (2014: € 17.071 million
8). The overall
compensation for the 2014 financial year lies above the overall compensation for the year under review,
as the LTIP Bonus resulting from the LTIP 2012/2014 measured over a three-year period was granted in
the 2014 financial year. Furthermore, in the 2015 financial year, the service costs of the company for the
pension commitments of Glenn Bennett and Robin J. Stalker were significantly lower than in the 2014
financial year as, in the 2014 financial year, the service costs were increased by the past service costs
resulting from the increase 9 of the targeted provision level.
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 2014 and 2015 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 and LTIP 2015/2017, each measured over a three-year period,
is indicated with the pro rata temporis target amount of an ‘average probability scenario’ at the time of
granting, whereby adidas AG takes the 100% target amount as the basis.
7 This bonus amounts to 75% for
Roland Auschel, Glenn Bennett
and Eric Liedtke, 100% for Robin
J. Stalker and 125% for Herbert
Hainer and is based on the
Performance Bonus granted to
the respective Executive Board
member for the last full financial
year.
8 The overall compensation for 2014
does not include the follow-up
bonus of Erich Stamminger in the
amount of € 603,387, granted at
the time of his departure.
9 Increase of the annual pension
components of Glenn Bennett
and Robin J. Stalker to three
percentage points of the
pensionable income effective
March 6, 2015.