DHL 2013 Annual Report Download - page 128

Achievement of the upper targets for the nancial year that have been agreed based
on demanding objectives is rewarded with the maximum annual bonus. 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.
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, sus-
tainability 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.
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 made a personal nancial investment consisting of  
of their annual base salary. e waiting period for the stock appreciation rights is four
years from the date on which 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  s not exercised
during this two-year period will expire.
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 (closing) price is calculated as the average
closing price of Deutsche Post shares in Deutsche Börse ’s Xetra trading system.
A maximum of four out of every six  s can be “earned” via the absolute perform-
ance 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 attributable to the related tranche will expire without replacement or compensation.
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 or if it
outperforms the index by at least  .
Remuneration from stock appreciation rights is limited to   of the annual target
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.
124 Deutsche Post DHL 2013 Annual Report
Corporate Governance Report
Remuneration report
Corporate Governance