Mercedes 2012 Annual Report Download - page 116

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3 | Management Report | Remuneration Report
During the four-year period, the allocated phantom shares earn
a dividend equivalent whose amount is related to the dividend
paid on real Daimler shares in the respective year. With regard
to share-based remuneration, any subsequent change in the
defined performance targets or reference parameters is ruled out.
Guidelines for share ownership. As a supplement to these
three components of remuneration, Stock Ownership
Guidelines have been approved for the Board of Management.
These guidelines require the members of the Board of Man-
agement to invest a portion of their private assets in Daimler
shares over several years and to hold those shares until the
end of their Board of Management membership. The number
of shares to be held was set when the Performance Phantom
Share Plan was introduced in relation to double the then annual
base salary for each ordinary member of the Board of Man-
agement and triple the then annual base salary for the Chairman
of the Board of Management. In fulfillment of the guidelines,
half of the net payment made out of a Performance Phantom
Share Plan is generally to be used to acquire ordinary shares
in the Company, but the required shares can also be acquired
in other ways.
Appropriateness of Board of Management remuneration.
In accordance with Section 87 of the German Stock Corpo-
ration Act (AktG), the Supervisory Board of Daimler AG once
again had an assessment of the system of Board of Man-
agement remuneration confirmed by external auditors in 2012.
The remuneration system was unchanged in 2012 compared
with 2011 and had already been approved by the Annual Share-
holders’ Meeting in 2011.
Board of Management remuneration in 2012
Total Board of Management remuneration in 2012.
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
– the base salary in 2012,
– the half of the annual bonus for 2012 payable in 2013,
– the half of the medium-term share-based component
of the annual bonus for 2012 payable in 2014 with its value
at the balance sheet date (entitlement depending on
the development of Daimler’s share price compared with
the Dow Jones STOXX Auto Index),
– the value of the long-term share-based remuneration
for 2012 at the time when granted, and
– the taxable non-cash benefits in 2012.
For both of the share-based components – the second
50% of the annual bonus and the PPSP with a long-term
orientation – the amounts actually paid out can deviate signif-
icantly from the values described depending on the devel-
opment of the Daimler share price and on the achievement
of the relevant target parameters.
The remuneration of the Board of Management for the year 2012
amounts to €28.2 million (2011: €29.0 million). Of that total,
€7.5 million was fixed, that is, non-performance-related remuner-
ation (2011: €7.4 million), €9.3 million was variable, that is,
short- and medium-term performance-related remuneration
(2011: €12.8 million), and €11.4 million was variable perfor-
mance-related remuneration granted in 2012 with a long-term
incentive effect (2011: €8.8 million).  3.43
Board of Management Remuneration 2012
Base salary Short and medium-term variable
remuneration (annual bonus)
Short-term Medium-term
Long-term variable remuneration
(PPSP)
Number Value when granted
(2012: at share price €48.23)
(2011: at share price €51.08)
Total
In thousands of euros
Dr. Dieter Zetsche 2012
2011
2,008
2,008
1,426
2,038
1,426
2,038
68,273
50,311
3,293
2,570
8,153
8,654
Dr. Wolfgang Bernhard1 2012
2011
715
715
508
726
508
726
27,309
20,125
1,316
1,026
3,047
3,193
Dr. Christine Hohmann-Dennhardt 2012
2011
715
624
526
618
526
618
27,309
17,609
1,317
899
3,084
2,759
Wilfried Porth22012
2011
715
715
508
708
508
708
27,309
20,125
1,229
966
2,960
3,097
Andreas Renschler32012
2011
755
755
536
747
536
747
30,487
22,467
1,460
1,148
3,287
3,397
Hubertus Troska 2012
2011
37
–
24
–
24
–
–
–
–
–
85
–
Bodo Uebber42012
2011
866
866
636
879
636
879
32,647
24,058
1,402
1,054
3,540
3,678
Prof. Dr. Thomas Weber 2012
2011
715
715
490
726
490
726
28,998
21,369
1,399
1,092
3,094
3,259
Total 2012
2011
6,526
6,398
4,654
6,442
4,654
6,442
242,332
176,064
11,416
8,755
27,250
28,037
1 Taking into account supervisory board remuneration of €1,250.
2 Taking into account supervisory board remuneration of €88,460.
3 Taking into account supervisory board remuneration of €10,913.
4 Taking into account supervisory board remuneration of €173,048.
3.43