DHL 2010 Annual Report Download - page 142

Remuneration report
 e remuneration report also forms part of the Group Management Report.
Remuneration structure of the Group Board of Management in fi nancial year 
On the recommendation of the Executive Committee, the Supervisory Board
in December  held consultations on the remuneration system for the Board of
Manage ment, including the main contractual elements, and adapted it to the speci ca-
tions of the Gesetz zur Angemessenheit der Vorstandsvergütung (VorstAG – German
act on the appropriateness of management board remuneration).  e Annual General
Meeting of Deutsche Post  approved the new remuneration system for members
ofthe Board of Management on  April  with .  of the votes cast.
 e Board of Management remuneration re ects the size and global reach of the
company, its economic and  nancial situation and the roles ful lled by and achieve-
ments of the individual members. It is set to ensure competitiveness with comparable
German and international companies, thus incentivising the Board of Management
members to deliver maximum performance and achieve results.
 e remuneration paid to the Board of Management for  is in line with stand-
ard market practice, appropriate to the tasks involved and designed to reward per-
formance; it comprises non-performance-related, i. e.,  xed, elements and variable, i. e.,
performance-related, elements, which include short, medium and long-term incentives.
Non-performance-related components are the annual base salary ( xed annual
remuneration), fringe bene ts and pension commitments.  e annual base salary is
paid in twelve equal monthly instalments retroactively at the end of each month. Fringe
bene ts mainly comprise the use of company cars, supplements for insurance premiums
and special allowances and bene ts for assignments outside the home country.
 e variable remuneration components comprise one element linked to the com-
pany’s annual performance (annual bonus), a portion of which is being converted to a
medium-term component, and one long-term incentive component (the Long-Term
Incentive Plan).
 e amount of the component linked to the company’s annual performance (the
annual bonus) is set at the due discretion of the Supervisory Board on the basis of the
company’s performance.  e individual annual bonus amounts re ect the extent to
which prede ned targets are achieved, missed or exceeded.
For all Board of Management members, the Group’s  a er asset charge perform-
ance metric, including the asset charge on goodwill before goodwill impairment ,
is the main parameter used in this calculation. For the Board of Management members
in charge of the ,  , ,  and  
divisions, the  of their respective division is also a key parameter. Furthermore, an
employee-related target is agreed on with all Board of Management members based on
the annual employee opinion survey, as are additional targets.
Achievement of the upper targets for the  nancial year is rewarded with the maxi-
mum annual bonus, which may not exceed   of the annual base salary. If the targets
speci ed for the  nancial year are only partially reached or completely missed, the
annual bonus will be paid on a pro-rata basis or not at all.  e Supervisory Board may
also elect to award an appropriate special bonus for extraordinary achievement.
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