Mercedes 2012 Annual Report Download - page 117

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When comparing with the prior-year figures, with regard
to the total of base salary, the annual bonus and the PPSP
granted, it is necessary to consider the appointment of
Mr. Troska taking effect as of December 13, 2012. The same
applies to Dr. Hohmann-Dennhardt for the year 2011.
The granting of non-cash benefits in kind, primarily the
reimbursement of expenses for security precautions and the
provision of company cars, resulted in taxable benefits for
the members of the Board of Management in 2012 as shown
in the table.  3.44
Commitments upon termination of service
Retirement provision. The pension agreements of some
Board of Management members include a commitment
to an annual retirement pension, calculated as a proportion
of the former base salary and depending on the number
of years of service. Those pension rights were granted until 2005
and remain valid; they have been frozen at that level, however.
Retirement pensions start upon request when the term
of service ends at or after the age of 60, or are paid as disability
pensions if the term of service ends before the age of 60 due
to disability. The agreements provide for a 3.5% annual increase
in benefits (with the exception that Wilfried Porth’s benefits
are adjusted in accordance with applicable law). The agreements
include a provision by which a spouse of a deceased Board
of Management member is entitled to 60% of that member’s
pension. That amount can increase by up to 30 percentage
points depending on the number of dependent children.
Effective as of January 1, 2006, we replaced the pension agree-
ments of the Board of Management members with a new
arrangement, the so-called Pension Capital system. Under this
system, each Board of Management member is credited with
a capital component each year. This capital component comprises
an amount equal to 15% of the sum of the Board of Manage-
ment member’s fixed base salary and the actual annual bonus
for 2012, multiplied by an age factor equivalent to a rate of
return of 6% until 2015 and 5% as of 2016 (Wolfgang Bernhard
and Wilfried Porth: 5% for all years). In accordance with the
regulations in force at Daimler AG, contributions to pension plans
are only granted until the age of 60. The benefit from the
pension plan is payable to surviving Board of Management mem-
bers upon retirement at or after the age of 60, or as a disability
pension upon retirement before the age of 60 due to disability.
Daimler has introduced a new company retirement benefit plan
for new entrants and new appointments for employees paid
according to collective bargaining wage tariffs as well as for exec-
utives: the “Daimler Pensions Plan”. As before, the new retire-
ment benefit system features the payment of annual contributions
by Daimler, but is orie nted towards the capital market, com-
bined with Daimler’s commitment to guarantee the contributions
paid. The Supervisory Board of Daimler AG has approved
the application of this system for all newly appointed members
of the Board of Management (2012: Mr. Troska).
Members of the Board of Management are credited with
a capital component each year. This amount is calculated from
15% of the total of the base salary and the actual annual bonus.
The contribution period ends when the contract of service
ends. The benefit from the pension plan is payable to surviving
Board of Management members upon retirement at or after
the age of 62, or as a disability pension upon retirement before
the age of 62 due to disability.
Payments under the Pension Capital system and the Daimler
Pensions Plan can be made in three ways:
– in a single amount;
– in twelve annual installments, whereby interest accrues
on each partial amount until it is paid out;
– as a pension with or without benefits for surviving
dependents, with an annual increase (see above).
The contracts specify that if a Board of Management member
passes away before retiring for reason of age, the spouse
or dependent children is/are entitled to the full committed
amount in the case of the Pension Capital system, and to
the credit amount reached plus an imputed amount until the
age of 62 in the case of the Daimler Pensions Plan. If a Board
of Management member passes away after retiring for reason
of age, in the case of payment of twelve annual installments,
the heirs are entitled to the remaining present value. In the case
of a pension with benefits for surviving dependents, the
spouse/registered partner or dependent children is/are entitled
to 60% of the discounted terminal value (Pension Capital),
or the spouse/registered partner is entitled to 60% of the actual
pension (Daimler Pensions Plan).
Non-cash benefits and other benefits
2012 2011
In thousands of euros
Dr. Dieter Zetsche 151 159
Dr. Wolfgang Bernhard 63 71
Dr. Christine Hohmann-Dennhardt 191 121
Wilfried Porth 114 123
Andreas Renschler 152 169
Hubertus Troska 4–
Bodo Uebber 112 165
Prof. Dr. Thomas Weber 156 149
Total 943 957
3.44