DHL 1997 Annual Report Download - page 57

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54
Personnel
Expenses for wages, salaries and other
emoluments
1996 1997
13 ,10 1
12 ,18 7
15,000
14,000
13,000
12,000
11,000
10,000
in DM millions
Expenses for social security contributions, pension expenses and other
benefits rose by 8.5 percent to DM 7,435 million. This increase was due
to the transfer to pension accruals of DM 621 million previously disclosed
in the Notes. Despite this extraordinary item, total personnel expenses
declined by 1.7 percent to DM 19,622 million.
Employees’ pension scheme reorganized
The company pension scheme for employees, adopted in 1996,
initially applied to our employees in the eastern states of Germany (the
former German Democratic Republic). It was subsequently extended to
include also all new employees in Germany’s western states, effective as
of May 1997. At the same time, we introduced the “Betriebsrente Post”
(postal pension plan), maintaining the entitlements already earned
through “VAP Versorgungsanstalt der Deutschen Bundespost” (Deutsche
Bundespost institution for supplementary pensions). We also discontinued
statutory insurance coverage through VAP. Vested pensions are now
financed by the Deutsche Postbetriebsrenten-Service e.V., Deutsche
Post’s company pension service established especially for this purpose.
A competitive pension scheme for our executive management was
introduced on January 1, 1998.
Deutsche Post’s pension system now has a calculable and financially
sound foundation. It offers employees an attractive supplement to such
other pillars of old- age retirement as statutory social insurance and
personal retirement provisions. With these changes we also established
the prerequisite for substantially reducing in the medium term Deutsche
Post’s expense burden in this area.
Performance - related pay: new developments
Increasing competition in our business calls for modern com-
pensation systems, i.e., the performance of the individual employee is
increasingly important in determining compensation resulting in
greater differentiation in individual compensation. It allows us to
Number of employ ees
1996 1997
284,889
266,823
350,000
300,000
250,000
200,000
150,000
100,000