Mercedes 2010 Annual Report Download - page 158

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Implementation of the Act on the Appropriateness of Man-
agement Board Remuneration/Adjustment of the remuner-
ation system in 2011. Against the backdrop of the German
Act on the Appropriateness of Management Board Remuneration
(VorstAG), the Supervisory Board of Daimler AG commissioned
an expertise on the system of Board of Management remuneration
by external auditors in late 2009. As a result, the remuneration
system described above was confirmed as complying with the
provisions of applicable law. On this basis and due to the diffi-
cult economic situation at the beginning of the year, the Supervi-
sory Board decided not to change the remuneration system
in 2010. This remuneration system was approved by the Annual
Shareholders’ Meeting in April 2010 with a majority of 95.97%
of the votes cast.
The 2010 Annual Shareholders’ Meeting was already informed
about the adjustment of remuneration as of the year 2011. The
total of base salary and annual bonus will be divided equally
between those two components. This change at first has the effect
of a neutral shift within the target remuneration from the annual
bonus to the fixed salary. As a result, the target bonus has been
reduced from 1.5 times the base salary to the same amount
as the base salary, thus reducing the maximum amount of annual
bonus to be paid to 200% of the fixed salary. The range of target
achievement and the reference parameters remain unchanged.
In addition, the annual bonus is no longer paid out after the end
of the year in full, but only 50%. The rest is paid out one year later
in the form of a bonus/malus (reward/penalty) arrangement,
depending on the development of Daimler’s share price compared
with an automotive index (Auto-STOXX, see pages 22 ff.), which
Daimler uses as a criterion for the relative performance of its share
price.
Board of Management remuneration 2010
Base salary Waiver Short-term vari-
able remuneration
(annual bonus)
Long-term variable remuneration (PPSP)
Number Value when granted
(2010: at share price €30.61)
(2009: at share price €18.82)
Total
In thousands of euros
Dr. Dieter Zetsche 2010
2009
1,530
1,530
- 115
- 153
4,819
689
80,269
114,967
2,457
2,164
8,691
4,230
Dr. Wolfgang Bernhard 2010 472 - 30 1,487 29,554 905 2,834
Wilfried Porth 2010
2009
535
382
- 39
- 53
1,679
172
32,108 983 3,158
501
Andreas Renschler 12010
2009
575
575
- 43
- 58
1,771
305
35,829
51,317
1,079
966
3,382
1,788
Bodo Uebber 2 2010
2009
660
660
- 50
- 66
2,079
297
38,383
54,975
997
930
3,686
1,821
Dr. Thomas Weber 2010
2009
545
545
- 41
- 55
1,679
245
34,078
48,809
1,043
919
3,226
1,654
Total 2010
2009
4,317
3,692
- 318
- 385
13,514
1,708
250,221
270,068
7,4 6 4
4,979
24,977
9,994
1 PPSP amount after deduction of remuneration of €17,732 received as a board member of an affiliated company.
2 PPSP amount after deduction of remuneration of €177,321 received as a board member of an affiliated company.
Board of Management remuneration in 2010
Total Board of Management remuneration in 2010. The total
remuneration granted by Group companies to the members of
the Board of Management of Daimler AG is calculated as the total
of the amounts of remuneration paid in cash (base salary and
annual bonus), the value of the share-based remuneration at the
time when granted in February 2010 (Performance Phantom
Share Plan – PPSP), and taxable non-cash benefits. The share
price relevant for the payout amount of the PPSP in four years’
time can deviate significantly from the share price relevant when
granted.
Total remuneration comprises €4.8 million as fixed, i.e. non-per-
formance-related remuneration (2009: €4.8 million) €13.5 million
as short-term variable remuneration, i.e. short-term performance-
related remuneration (2009: €1.8 million), and €7.5 million as
variable performance-related remuneration with a long-term
incentive effect granted in 2010 (2009: €5.2 million). This adds
up to a total of €25.8 million for the year 2010 (2009: €11.8
million).