Porsche 2012 Annual Report Download - page 74

age of the overall indices. During the reporting
period, the LTI target was 2.25 million euro for
Prof. Dr. Winterkorn, the chairman of the board of
management of Volkswagen AG, and 1.0 million
euro for Mr. Pötsch in his function as a member of
the board of management of Volkswagen AG. The
maximum amount payable is 4.5 million euro for
Prof. Dr. Winterkorn and 2.0 million euro for
Mr. Pötsch. The LTI was calculated and paid to the
board of management for the first time in 2011 for
fiscal year 2010 using an introductory scenario and
on the basis of the likely performance for 2011. The
performance for fiscal years 2010 and 2011 was
reflected in the calculation in 2012, and the perfor-
mance for 2010 to 2012 will be reflected in the
calculation in 2013. From 2014 onwards, the previ-
ous four years will be used as a basis for analysis.
The supervisory board may cap the total of var-
iable remuneration components in the event of
extraordinary business developments.
Prof. Dr. Winterkorn and Mr. Pötsch are entitled to
payment of their normal remuneration for 12 months
in the event of illness from the Volkswagen AG.
There were no changes to the existing contracts
of Prof. Dr. Winterkorn and Mr. Pötsch in the fiscal
year 2012.
Remuneration principles at Porsche AG
The remuneration principles of Porsche AG pre-
sented below pertain exclusively to the agreements
made with Messrs. Matthias Müller and Thomas
Edig. In addition to their membership of Porsche
SE’s executive board, they were members of the
executive board of Porsche AG in the fiscal year
2012 and received remuneration for their service.
The management of Porsche Holding Stuttgart
GmbH, which, except for one member, comprises
the same individuals as the executive board of
Porsche AG, does not receive any remuneration for
the assumption of its duties.
In connection with the creation of the integrated
automotive group between Porsche and Volks-
wagen, the agreements on Mr. Müller’s remunera-
tion at Porsche AG were also adjusted. Since
1 January 2012, he has received only a fixed annual
salary and as a fixed annual management bonus.
Mr. Müller has no longer received variable remuner-
ation from Porsche AG since then.
For his membership of the executive board of
Porsche AG, Mr. Edig receives fixed remuneration
comprising a fixed annual salary and a fixed annual
management bonus.
In addition, Mr. Edig receives a short-term vari-
able remuneration component, the starting amount
of which is calculated as a percentage of the result
from ordinary activities determined in accordance
with IFRSs of the Porsche AG group (Porsche AG
and its subsidiaries) adding back the allocation to
the provision set up for variable executive board
remuneration, and its amount is based on the extent
to which certain individual targets agreed with the
supervisory board of Porsche AG are achieved
(bonus). This remuneration component is paid out
three months after the end of a fiscal year (short-
term variable remuneration). The targets that are
arranged in a separate agreement are oriented
towards a sustainable development of the Porsche
AG group.
Furthermore, the remuneration structure for
Mr. Edig agreed with the supervisory board of Por-
sche AG provides for long-term variable remunera-
tion (LTI component), the starting amount of which
is also calculated as a percentage of the result from
ordinary activities (determined in accordance with
IFRSs) and with a defined minimum amount, adding
back the amount allocated to the provision set up
for the variable remuneration of the executive board.
It is not, however, paid out until two years later.
Payment of the LTI component is subject to the
conditions precedent of a profit being generated in
the last fiscal year before it falls due. The amount
paid out for the LTI component depends on the
targets set forth in the long-term business plan
2The company
Group management report
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