Porsche 2012 Annual Report Download - page 66

percentage increases by one percentage point for
each full year of active service on the executive
board of Porsche SE. The defined maximum is 40
percent. As of 31 December 2012, Mr. von Hagen
has a retirement pension entitlement of 25 percent
of his fixed annual remuneration. Immediate vesting
was agreed.
The retirement pension is paid in monthly
amounts upon reaching the age of 65 or earlier in
the event of permanent disability. In the event of
entitlement to a retirement pension before reaching
the age of 65, the retirement pension is calculated
using actuarial principles by annuitization of the
pension provision permissible in accordance with
tax law prior to the point in time the payment of the
retirement pension falls due.
The surviving dependents’ benefits comprise a
widows’ pension of 60 percent of the retirement
pension and orphans’ benefits of 20 percent of the
retirement pension for each child, decreasing to 10
percent for each child if a widow’s pension is paid.
The total amount of widows’ pensions and orphans’
benefits may not exceed the amount of the retire-
ment pension. Orphans’ benefits are limited to a
total of 80 percent of the retirement pension.
The expense recognized for the current addition
to the pension provision for Mr. von Hagen amounts
to 227,863 euro in the fiscal year 2012. This amount
corresponds to the present value of the pension
obligations for Mr. von Hagen as of 31 December
2012.
Mr. Müller will continue to be entitled to a com-
pany car following the date of retirement.
In the event of early termination of service on
the executive board without due cause, provision is
made for a severance payment cap, according to
which any severance payments, including fringe
benefits, may not exceed a maximum of two years’
compensation. Under no circumstances may the
payments exceed the amount of remuneration due
for the remaining term of the employment agree-
ment. The severance payment cap is calculated on
the basis of the total compensation for the past full
fiscal year and, if appropriate, also the expected
total compensation for the current fiscal year.
Messrs. Müller and von Hagen receive variable
remuneration components from the company. In the
event of departure from the executive board prior to
the date when payment falls due as a result of ter-
mination for cause by Porsche SE, the entitlements
to variable components that have not yet been paid
out (in full or in part) expire. In the event of depar-
ture for other reasons prior to the date when pay-
ment falls due, the two executive board members
retain their entitlement to payment of their perfor-
mance-related remuneration. The date when pay-
ment falls due is not affected by early departure
from the executive board of the company. In the
case of Mr. Müller, however, the variable remunera-
tion components still outstanding will be paid only if
the Porsche SE group has reported a profit before
tax for the respective fiscal year at group level and if
the net liquidity of Porsche SE is positive as of 31
December of the last calendar year before payment
falls due.
Benefits granted in connection with
termination of service in the fiscal year 2012
and remuneration of former members of the
executive board of Porsche SE
Mr. Edig left the executive board of Porsche SE
effective as of the end of the day on 29 February
2012. The company paid Mr. Edig an amount of
460,000 euro in this connection. Of this amount,
196,237 euro arithmetically pertains to compensa-
tion for all income that he would have received as
non-performance-related remuneration after the end
of the day on 29 February 2012 until the end of the
term of the employment agreement on 22 July 2012.
The arithmetically remaining amount of 263,763
euro was granted to him as compensation for all
disadvantages arising as a result of terminating his
service and in recognition of his extraordinary per-
formance and is thus performance-related.
2The company
Group management report
262