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managing directors
Remuneration for the Managing Directors,
which is stipulated by the Administrative
Board, consists of base pay and
performance-related components. The
base pay components are a fixed salary and
benefits in kind, while the performancerelated
components are divided into
bonuses and long-term incentives (stock
appreciation rights). Along with job
assignments and performance of each
individual Managing Director, the criteria
for calculating the total remuneration are
the economic situation, long-term strategic
planning and related targets, the longterm
durability of targeted results, the
Company’s long-term prospects as well as
international benchmark comparisons.
pUMa BUsiness and sUstainaBility RepoRt 2012
The base pay, which is a fixed component
regardless of performance, is paid monthly
as the salary. In addition, the Managing
Directors receive benefits in kind, such as
company cars and insurance premiums.
In principle, all Managing Directors are
equally entitled to the above benefits; they
are included in the base pay.
The bonus component of performancerelated
compensation is mainly based on
the PUMA Group’s operating income and
free cash flow and is staggered according
to the degree to which targets are met. The
parties have also agreed to an upper limit.
Performance-related components of
remuneration with long-term incentives
(stock appreciation rights) are basically
set up in conjunction with the multiannual
ManageMent RepoRt
compensation report oF
managing directors
and the administrative Board
plans, with the number of issued
appreciation rights assessed as part of the
overall remuneration. The number of stock
appreciation rights issued is measured as a
component of total compensation, based on
the fair value of the stock appreciation rights
on the allotment date. A cap is provided
for to cover extraordinary, unforeseen
developments. Please refer to item 19 of
the Notes for details on the parameters for
specific programs.
In the financial year fixed compensation for
the five Managing Directors totaled € 2.5
million (previous year: € 4.9 million) and
variable performance-based compensation
totaled € 0.4 million (previous year: € 2.6
million).
After allocating expenses to the vesting
period, expenses for new options and for
options issued in previous years resulted
in earnings totaling € 1.1 million (previous
year: expense € 3.8 million). The income
posted is because expense entries for
options were rescinded in the reporting year
due to the retirement of Managing Directors.
Managing Directors were granted a total
of 35,875 options from the “SOP 2008”
Program in the financial year. Of these,
26,906 expired because Managing Directors
retired. The fair value at the time of issue
was € 44.60 per option.
In the financial year 2012 a total of € 4.7 million
was spent on financial settlements and in
this context for promised performances for
retiring Managing Directors.
The Company has concluded reinsurance