DHL 2003 Annual Report Download - page 84
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Wage agreements provide planning security
In 2003, wage agreements were signed for periods of up to 24 months by the following
German Group companies: DHL Worldwide Express GmbH, Deutsche Post Express
GmbH, Deutsche Post Euro Express GmbH & Co. OHG, and Deutsche Post ITSolutions
GmbH. This provides these companies with planning security in a difficult market
environment.
Harmonization of executive compensation
We began standardizing the salary bands for our executives across the Group in 2002.
In the meantime, job descriptions have been produced for the majority of second-
and third-level executives in accordance with a uniform standard (“role classification
system”) and the appropriate salary bands per country have been largely defined.
Since January 2004, we have been systematically implementing the new structure for
third- and fourth-level management. We also have standardized guidelines for job
titles, annual salary adjustments, and international management assignments through-
out the Group. The Deutsche Post World Net Mobility Policy covers the international
transfer and assignment of executives, thus supporting their integration within the
Group. Approximately 600 executives are currently working abroad throughout the
Group.
On August 1, 2003, we issued options and stock appreciation rights (SARs) to
the members of the Group’s Board of Management and the Group’s executives in
accordance with the conditions of the approved stock option program. Some of the
options are linked to satisfying absolute performance targets, while others can be
exercised if relative performance targets are met. In addition, members of the Board
of Management and second-level Group executives must invest in Deutsche Post
shares to receive options. In the year under review, 1,130 executives subscribed to the
stock option plan. DHL’s executives were included in the program for the first time.
As a result, the number of options issued increased to 13,049,592 and the number
of SARs to 731,736.
More added value from employee ideas
Our employees systematically improve Group business processes by taking a critical,
productive approach to existing workflows. Our ideas management program con-
tinued its success in the year under review: around 98,000 ideas (previous year:
around 92,000) were submitted to Deutsche Post AG and we implemented half of
them. The resulting measurable savings amounted to around €73 million. This
model employee initiative was awarded the Thinkers Prize 2003 from the Deutsches
Institut für Betriebswirtschaft (German Institute for Business Economics).