DHL 2014 Annual Report Download - page 124

Achievement of the upper targets for the nancial year that have been agreed based
upon demanding objectives is rewarded with the maximum annual bonus. If the tar-
gets 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 upon the  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 perfor-
mance 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  .
e proceeds from stock appreciation rights are limited to a maximum amount. e
individual amount limits for the  tranche can be seen in tables . and .. e
remuneration from stock appreciation rights may be limited by the Supervisory Board
in the event of extraordinary circumstances.
Deutsche Post  Group —  Annual Report
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