DHL 2009 Annual Report Download - page 131

 e remuneration of the Board of Management for  is in line with standard
market practice, appropriate to the tasks involved and designed to reward perfor-
mance; it comprises  xed and variable elements as well as long-term incentives.
Non-performance-related components are the  xed annual remuneration (annual
base salary), fringe bene ts and pension commitments.  e  xed annual remuneration
is paid in  equal monthly instalments retroactively at the end of each month. Fringe
bene ts mainly comprise the use of company cars and supplements for insurance pre-
miums as well as special allowances and bene ts for assignments outside the home
country.
 e variable remuneration components for  comprise one component linked
to the company’s annual pro ts (annual performance-related remuneration) and one
long-term incentive component (the Long-Term Incentive Plan).
 e amount of the annual performance-related component (the annual bonus) is
set at the due discretion of the Supervisory Board on the basis of the company’s perfor-
mance.  e individual bonus amounts re ect the extent to which prede ned targets are
achieved, missed or exceeded.  e Group’s  a er asset charge performance metric
is the main parameter used in this calculation. For the Board of Management members
in charge of the ,  , ,  and  
divisions, the  a er asset charge of their respective division is also a key parameter.
Achievement of the upper target for the  nancial year is rewarded with the maximum
annual performance-related remuneration (annual bonus).  e maximum annual bo-
nus opportunity is   of the  xed annual remuneration. In addition, the Supervisory
Board may elect to award an appropriate special bonus for extraordinary achievement.
 e remuneration component linked to the company’s annual pro ts now also
includes a sustainability component in line with the provisions of the Gesetz zur
Angemessenheit der Vorstandsvergütung (VorstAG – Act on the appropriateness of ma-
nagement board remuneration), which came into force on  August . It will be
taken into account in employment contracts and contract renewals entered into a er
 August , increasing the emphasis on sustainable company development in deter-
mining management board remuneration. For such contracts, the annual performance-
related remuneration will in future no longer be paid in full for the year on the basis
of having reached the agreed targets. Instead,   of the annual performance-related
remuneration will  ow into a new medium-term component with a three-year calcu-
lation period (performance phase of one year, sustainability phase of two years).  is
medium-term component will be paid out a er expiry of the sustainability phase sub-
ject to the condition that the targets related to reported  a er asset charge (inclu-
ding the asset charge on goodwill and before goodwill impairment) have been reached
during the sustainability phase. If the sustainability criteria are not met, the payment is
forfeited without compensation.  is demerit system puts greater emphasis on sustai-
nable company development in determining management board remuneration.
Stock appreciation rights  are granted as a long-term remuneration com-
ponent based on the Long-Term Incentive Plan resolved by the Supervisory Board in
  .
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