DHL 2010 Annual Report Download - page 215

On  September , the European Court of Justice dis-
missed the appeal by the European Commission against the ruling
of the European Court of First Instance of  July .  is means
that the decision of the European Commission of  June  on
alleged state aid to Deutsche Post  has been  nally annulled.  e
European Commission had ordered Deutsche Post  to repay
state aid it had allegedly received, plus interest, in a total amount
of   million.  e European Court of First Instance upheld the
complaint of Deutsche Post , upon which the above sum, which
had already been paid, was reimbursed to Deutsche Post  on
 August .
In October   Global Forwarding, along with all other
major players in the freight forwarding industry, received a request
for information from the Competition Directorate of the European
Commission, a subpoena from the United States Department of
Justice’s Antitrust Division and requests for information from
competition authorities in other jurisdictions in connection with
a formal investigation into the setting of surcharges and fees in
the international freight forwarding industry. In January , an
anti trust class action was initiated in the New York District Court
on behalf of purchasers of freight forwarding services in which
Deutsche Post  and  are named as defendants.  is civil
action appears to be based on the fact that antitrust investigations
are ongoing, but not on any known outcome or quanti ed loss.
Deutsche Post DHL is not able to predict or comment on the out-
come of the investigations or the prospects of the class action, but
believes its  nancial exposure in relation to both is limited.
 Share-based payment
Share-based payment for executives (Share Matching Scheme)
 e new system to grant variable remuneration components
for some of the Group’s executives introduced in , which is
accounted for as an equity-settled share-based payment trans-
action in accordance with  , was extended to include other
groups of Group executives in . Under this system, certain
executives concerned receive part of their variable remuneration
for the  nancial year in the form of shares of Deutsche Post  in
the following year; all Group executive can specify an increased
equity component individually by converting a further portion of
their variable remuneration for the  nancial year. If certain condi-
tions are met, the executive will again be awarded the same number
of Deutsche Post  shares four years later (matching shares).  e
programme for the  nancial year  tranche will therefore
expire in  a er a four-year vesting period; the programme for
the  nancial year  tranche will expire in .
For  nancial year , the Group executives partici pating
in this share-based payment system will receive a portion of the
bonus of around  . million in shares.  is amount plus the
matching shares to be granted a er the four-year period result
in a minimum number of shares of approximately ,,. An
additional equity conversion based on the individual decisions
ofthe Group executives concerned is also expected in an amount
of , shares. Around , expected matching shares are
attributable to the  tranche.  e fair value of matching shares
for the  tranche corresponds to Deutsche Post ’s share price
as at the grant date of the  tranche  ..  e fair value of
the matching shares for the  tranche on the grant date of this
tranche is  ..
  million was recognised in equity for the grant of vari-
able remuneration components in the consolidated  nancial state-
ments as at  December . Of this, around  . million is
attributable to the expected portion of the bonus for  nancial year
 that will be paid out in Deutsche Post  shares.  e remain-
der is attributable to the matching shares that are to be issued in
April  ( tranche) and April  ( tranche).
  Plan for executives
Since  July , selected executives have received annual
tranches of stock appreciation rights under the Long-Term Incentive
Plan introduced in .  is allows them to receive a cash pay-
ment within a de ned period in the amount of the di erence
between the respective price of Deutsche Post shares and the  xed
issue price if demanding performance targets are met. All stock
appreciation rights under the  and  tranches expired at
the end of the respective waiting periods, since the performance
targets were not met without exception.
Long-Term Incentive Plan   for members of the Board
ofManagement
Since  July , the members of the Board of Management
have received stock appreciation rights  s under the new 
Long-Term Incentive Plan. Each  under the   entitles
the holder to receive a cash settlement equal to the di erence
between the average closing price of Deutsche Post shares during
the last  ve trading days before the exercise date and the issue price
of the .
 e members of the Board of Management each invested
  of their  xed annual remuneration (annual base salary) as a
personal  nancial investment in .  e number of  s issued
to the members of the Board of Management is determined by
the Supervisory Board. Following a four-year waiting period (or
following a three-year waiting period for  s issued up to ,
inclusive) that begins on the issue date, the  s granted can be
fully or partly exercised within a period of two years provided an
absolute or relative performance target is achieved at the end of
the waiting period. Any  s not exercised during this two-year
period will expire. To determine how many – if any – of the granted
 s can be exercised, the average share price or the average index
is compared for the reference period and the performance period.
 e reference period comprises the last  consecutive trading days
before the issue date.  e performance period is the last trading
days before the end of the waiting period.  e average (closing)
price is calculated as the average closing price of DeutschePost
shares in Deutsche Börse ’s Xetra trading system.
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Other disclosures
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