DHL 2010 Annual Report Download - page 143

 e annual bonus is not paid in full in a single instalment on the basis of having
reached the agreed targets. Instead,   of the annual bonus  ows into a medium-
term component with a three-year calculation 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 subject to the condition that , as an indicator of
sustainability, is reached during the sustainability phase. Otherwise, payment of the
medium-term component is forfeited without compensation.  is demerit system puts
greater emphasis on sustainable company development in determining management
board remuneration and sets long-term incentives.
 e medium-term component is applicable to all employment contracts and con-
tract renewals entered into a er the e ective date of the VorstAG ( August ).
Moreover, all Board of Management members have approved amendments to their
current Board of Management contracts stipulating that   of the annual bonus be
transferred to the new medium-term components from  January  until the cessa-
tion ofthe term of the respective contract.
Stock appreciation rights  s are granted as a long-term remuneration com-
ponent based on the Long Term Incentive Plan resolved by the Supervisory Board in
  .
Each  entitles the holder to receive a cash settlement equal to the di erence
between the average closing price of Deutsche Post shares for the  ve trading days
preceding the exercise date and the exercise price of the . In , the members of
the Board of Management each invested   of their annual base salary as a personal
 nancial investment.  e waiting period for the stock appreciation rights is four years
from the date they were granted. A er expiration of the waiting period and provided
an absolute or relative performance target has been achieved, the  s can be exercised
wholly or partially for a period of two years. Any  not exercised during this two-year
period will be forfeited.
To determine how many, if any, of the  s granted can be exercised, the average
share price or the average index value for the reference period is compared with that of
the performance period.  e reference period comprises the last  consecutive trading
days prior to the issue date.  e performance period is the last  trading days before
the end of the waiting period.  e average share price (closing price) is calculated as the
average closing price of Deutsche Post shares in Deutsche Börse ’s Xetra electronic
trading system.
A maximum of four out of every six  s can be “earned” via the absolute per-
formance target and a maximum of two via the relative performance target. If neither
an absolute nor a relative performance target is met by the end of the waiting period,
the  s of the related tranche will expire and no replacement or compensation in any
form will be provided.
One  is earned each time the closing price of Deutsche Post shares exceeds the
issue price by at least  ,  ,   or  .  e relative performance target is tied
to the performance of the shares in relation to the  Europe  Index ,
. It is met if the share price equals the index performance during
the performance period or if it outperforms the index by at least  .
Remuneration from stock appreciation rights is limited to   of the annual tar-
get cash compensation (annual base salary plus the annual target bonus). Moreover, it
may be limited by the Supervisory Board in the event of extraordinary circumstances.
129
Deutsche Post DHL Annual Report 
Corporate Governance
Corporate Governance Report
Remuneration report