DHL 2011 Annual Report Download - page 223

In the consolidated  nancial statements as at  Decem-
ber ,   million (previous year:   million) was recognised
in equity for the grant of variable remuneration components; see
table in Note ..
 Stock Appreciation Rights  Plan for executives
Since  July , selected executives have received annual
tranches of  s under the Long-Term Incentive Plan introduced
in .  is allows them to receive a cash payment 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 demand-
ing performance targets are met. All  s under the  and
 tranches expired at the end of the respective waiting periods,
since the performance targets were not met. A er the expiry of the
waiting period for the  tranche on  June , two-sixths of
the  s granted became exercisable. However, they could not be
exercised so far because the share price has not yet exceeded the
issue price of  ..
Long-Term Incentive Plan   for members of the Board
of Management
Since  July , the members of the Board of Management
receive  s under the  Long-Term Incentive Plan. Each 
under the   entitles the holder to receive a cash settle-
ment 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 per-
sonal  nancial investment in .  e number of  s issued to
the members of the Board of Management is determined by the
Super visory Board. Following a four-year waiting period (or fol-
lowing 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.
 e absolute performance target is met if the closing price of
Deutsche Post shares is at least , ,  or   above the issue
price.  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  .
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 Depart-
ment 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 antitrust 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 investiga-
tions are ongoing, but not on any known outcome or quanti ed
loss. Deutsche Post DHL is not able to predict or comment on the
outcome 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 transaction
in accordance with  , was extended to include other groups
of Group executives in . Under this system, certain executives
receive part of their variable remuneration for the  nan cial year
in the form of shares of Deutsche Post  in the following year
(incentive shares); all Group executives can specify an increased
equity component individually by converting a further portion
of their variable remuneration for the  nancial year (investment
shares). If certain conditions are met, the executive will again be
awarded the same number of Deutsche Post  shares four years
later (matching shares).
Share Matching Scheme
2009
tranche
2010
tranche
2011
tranche
Grant date 1 Nov. 2009 1 Jan. 2010 1 Jan. 2011
Term months 53 63 63
End of term March 2014 March 2015 March 2016
Share price at grant date  11.48 13.98 12.90
Number of incentive
shares
in
thousands 430 638 691
Number of matching
shares expected
in
thousands 762 1,674 1,913
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Other disclosures
217