TomTom 2011 Annual Report Download - page 56

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TomTom Annual Report and Accounts 2011
54
Notes to the Consolidated Financial Statements | continued
5. SEGMENT REPORTING (CONTINUED)
External revenue – geographical areas
(€ in thousands) 2011 2010
Europe 937,483 1,070,127
North America 256,592 380,463
Rest of the world 79,142 70,493
1,273,217 1,521,083
The group has no signifi cant concentration of sales from a particular individual external customer.
6. COST OF SALES
The group’s cost of sales consists of material costs for goods sold to customers, royalty and license expenses and fulfi lment costs incurred
on inventory sold during the year.
7. EMPLOYEE BENEFITS
Pension scheme
The group’s pension plans primarily comprise of defi ned contribution plans, limiting the employer’s legal obligation to the amount it agrees
to contribute during the period of employment.
In Germany the group operates a defi ned benefi t plan. Benefi ts are paid from a separately administered fund whilst contributions are
charged to the income statement.
Employees in the United States are offered the opportunity to participate in the 401K pension plan, which involves no contribution or
obligation from the group besides withholding and paying the employee contribution.
Remuneration policy for members of the Management Board and the Supervisory Board
The Remuneration Policy for members of the Management Board is drawn up by the Supervisory Board and approved by the General
Meeting of Shareholders.
In accordance with the Code, the remuneration of Supervisory Board members does not depend on the results of the company.
The company does not grant either stock options or shares to its Supervisory Board members and the company does not provide loans
to them.
The on-target bonus percentage is set at 64% of the base salary for members of the Management Board and 80% of the salary for the
CEO, and the maximum annual incentive achievable is 96% of the annual base salary for members of the Management Board and for the
CEO it is 120% of the annual base salary.
The actual bonus pay-out depends on certain challenging fi nancial targets (revenue, EBIT and cash fl ow). The total remuneration paid
to or on behalf of members of the Management Board for the year ended 31 December 2011, amounted to approximately €1.2 million
(2010: €1.7 million), of which 0% represented bonus payments (2010: 36%). In 2011, the bonus achievement was 0% of the target
bonus (2010: 89%).
Summary of key management remuneration
(€) Salary and bonus
Post
employment
benefi ts
Other
long term
benefi ts
Termination
benefi ts Share plan Share options
Total
remuneration
2011
Management Board and
senior management13,494,530 244,577 0 221,542 202,021 2,556,384 6,719,054
Supervisory Board 304,00000000304,000
2010
Management Board and
senior management 4,636,072 184,238 0 0 179,482 2,306,150 7,305,942
Supervisory Board 295,00000000295,000
1 The composition of our senior management changed from 9 to 4 members following our reorganisation announcement on 8 December 2011.