Adidas 2003 Annual Report Download - page 111

GETTING SERIOUS ABOUT TALENT MANAGEMENT /// A
critical success factor for any modern company is its people
and their talent. From a human capital management point of
view, we created the talent management program “Fit for
Gold”, that addresses career planning, identification of quali-
fied internal candidates and development of leadership
competencies. One objective is to establish a more effective
form of internal recruitment, which allows adidas-Salomon to
identify and develop succession candidates for senior man-
agement vacancies quickly and reliably. At the same time, we
aim to retain and motivate experienced employees through
visible investments in their progression. Basic management
curricula and career pathing are elements of this program as
well as developing leadership skills. A balanced learning
platform, including e-learning, classroom or on-the-job
training, campus programs and coaching, forms the training
ground for our educational activities.
REWARDING PERFORMANCE AND COMMITMENT /// To help
instill a performance culture, based upon strong leadership,
setting the ground for winners, we are implementing a com-
prehensive reward management system built on a homoge-
neous compensation philosophy and structure across the
Group.
The Group’s compensation system is composed of the follow-
ing elements:
>A “gross base salary”: A fixed component based on the
responsibilities, competencies and skills of the individual
employee.
>Our “pay for performance” bonus program: A performance-
based component of salaries of eligible employees in
all areas within the Group. More than 20% of all employees
receive a variable salary component with an average of
20% of their remuneration directly linked to individual and
Group performance.
>Long-term incentive programs: These include our man-
agement stock option plan (MSOP) that links the compen-
sation of approximately 450 key executives worldwide to
the development of the adidas-Salomon share price.
Options from this program were exercised for the first time
in August 2002 as well as in November 2002 and May and
November 2003 (see note 32).
>Other benefits: These include our 401-K pension plans in
the USA and the PP2000 pension program for employees in
Germany. In 2003, 900 eligible employees participated in
the PP2000 program, which represents an increase of 30%
compared to the prior year.
WORK-LIFE BALANCE COMMITMENT /// Since having been
audited by the independent Hertie foundation in 2002, we are
working in cross-functional groups at our headquarters to
address areas that have been identified for improvement to
achieve the certificate as a “family-friendly company”. Our
activities have been commended by more then 25 German
companies and NGOs and, in 2003, an “Exchange of Experi-
ence Summit” organized by the Hertie Foundation was hosted
by adidas-Salomon in Herzogenaurach, to discuss our efforts
and further learn from each other. One example of our activi-
ties here is our extensive fitness and wellness program in
which more then 1,000 employees participate at our German
headquarters alone. Other projects include holiday camps for
our employees’ children. We offered children of two age
groups an exciting week in Herzogenaurach with different
sports and educational activities during their summer holi-
days. An extension of our care for our employees’ children
during their school holidays is planned for the future.
APPRECIATION AND OUTLOOK /// 2003 was an exciting year
in which, despite tough markets, adidas-Salomon achieved
tremendous results. The Management would like to thank all
employees, their representatives and works councils for their
valuable support, cooperation and commitment again this
year. In addition to the programs mentioned above, important
Human Resources priorities in 2004 include the global imple-
mentation of our Internal Code of Conduct and the extension
of our “Fit for Gold” talent management. We will create a
working environment that stimulates team spirit and passion,
engagement and achievement and further build on our
performance culture, which is based on leadership, setting
the ground for winners!
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COMPENSATION DIAGRAM
Remuneration Measurement Basis
Benefits <Individual gain/need
(Flexible)
Long-term incentives <Long-term performance
(Variable) of the individual
Variable pay <Annual performance
(Variable)
Base pay <Competencies & skills
(Fixed) <Position
Total Remuneration
adidas SPORT STYLE ///
Y-3 MESSENGER HERO “TAKA” BAG