Reebok 2015 Annual Report Download - page 48

TO OUR SHAREHOLDERS
Compensation Report
44
1
OVERALL PAYMENTSTO FORMER MEMBERS OF THE EXECUTIVE BOARD
ANDTHEIR SURVIVING DEPENDANTS
In 2015, the overall payments to former Executive Board members or to their surviving dependants
amounted to € 3.524 million (2014: € 4.062 million 10). As at December 31, 2015, the provisions for pension
entitlements of this group of persons totalled € 42.730 million (2014: € 45.900 million). The decrease is
mainly attributable to an increase of the underlying interest rate from 2.1% to 2.5%.
There are further pension commitments towards three former Executive Board members who resigned after
December 31, 2005, which are covered by a pension fund or a pension fund in combination with a reinsured
pension trust fund. From this, indirect obligations amounting to € 12.644 million (2014: € 13.576 million)
arise for adidas AG, for which no accruals were established due to financing through the pension fund
and pension trust fund. This decrease is also attributable to an increase of the underlying interest rate.
The dynamisation of the pensions paid to former Executive Board members is effected in accordance with
statutory regulations or regulations under collective agreements, unless a surplus from the pension fund
is used for an increase in pension benefits after pension payments have already begun.
REVIEWOF EXECUTIVE BOARD COMPENSATION
In 2015, the Supervisory Board had the Executive Board compensation system reviewed with regard to
appropriateness by an independent external compensation expert. In doing so, the individual overall
target annual income of the Executive Board members was examined in detail. The review found that the
compensation meets the requirements of the German Stock Corporation Act and the Code. As the review
revealed a need for action regarding the pensions granted to the Executive Board members compared
to the pensions granted to executive board members of other companies in order to ensure competitive
compensation, the Supervisory Board resolved, with effect from January 1, 2015, the changeover from
defined benefit pension plans to defined contribution pension plans for all Executive Board members
appointed on or after October 1, 2013.
COMPENSATION OF THE SUPERVISORY BOARD
The compensation of the Supervisory Board members is regulated by § 18 of the company’s Articles of
Association and is linked to the size of the company and to the responsibility and scope of activities of the
Supervisory Board members. After the end of the respective financial year, the members receive a fixed
compensation amount for their function as well as compensation for the chairmanship of or membership
in committees, in accordance with the Code. For meetings requiring personal attendance, an attendance
fee amounting to € 750 is granted. Additional variable compensation is not granted to the Supervisory
Board members. Supervisory Board members who have not been members of the Supervisory Board for
the entire financial year receive a pro-rated amount of compensation.
For the 2015 financial year, each individual member of the Supervisory Board received €50,000 as fixed
annual compensation; three times this amount was paid to the Chairman of the Supervisory Board and
twice this amount was paid to each Deputy Chairperson. Members of the General Committee and of the
Finance and Investment Committee received additional compensation of € 25,000 and members of the
Audit Committee received additional compensation of € 50,000. In addition to their fixed compensation, the
Chairmen of the General Committee and of the Finance and Investment Committee received a compensation
amount of € 50,000 each, and the Chairman of the Audit Committee received compensation of € 75,000.
The compensation paid for a committee chairmanship also covers the membership in such committee. The
members of the Steering Committee, the Mediation Committee, the Nomination Committee and committees
which are established ad hoc do not receive additional compensation. If a Supervisory Board member is
in more than one committee, the member only receives compensation for his/her task in the committee
with the highest compensation. The Supervisory Board members are reimbursed for all expenses incurred
in connection with their mandates as well as for the VAT payable on their compensation, insofar as they
charge for it separately.
10 The overall payments for 2014
include the follow-up bonus of
Erich Stamminger in the amount
of € 603,387, granted at the time
of his departure.