Annual Report 2003 2004
Annual Report 2003 2004
Annual Report 2003 2004
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In feedback interviews the candidates are informed of their current assessment and the development<br />
areas and career prospects identified for them. For example, job rotation may be a suitable option if they<br />
need to expand their practical experience. In addition, individual coaching is available as well as a multistage<br />
Groupwide seminar program in which international groups of participants work together to develop<br />
solutions to current questions of corporate strategy. In addition, internationally renowned professors<br />
present forward-looking management approaches based on the latest research findings of the world's<br />
business schools – tailored to the specific questions arising at ThyssenKrupp. The seminars are supplemented<br />
by feedback and coaching schemes aimed at enhancing the leadership competencies and<br />
intercultural skills of participants.<br />
Executive compensation policy<br />
Executive compensation at ThyssenKrupp is linked both to individual performance and to the<br />
Company's success. This is reflected in bonus schemes and the Long Term Management Incentive<br />
(ltmi) plan as a long-term capital market-oriented element of compensation for the top management.<br />
In fiscal year 2002/<strong>2003</strong> the final installment of this ltmi plan was issued, the term of which expires<br />
in 2006.<br />
In 2002/<strong>2003</strong> a new earnings-related compensation element was introduced in the form of the Mid<br />
Term Incentive (mti) plan for the Executive Board members of ThyssenKrupp ag. In the reporting period<br />
the mti was extended to include the executive board members of the segment lead companies and other<br />
selected executives. The plan is linked both to the development of the Group's eva and to the ThyssenKrupp<br />
share price over a three-year performance period.<br />
The Group also offers its executives an attractive postretirement benefit plan which also provides<br />
financial security in the event of a reduction in earning capacity or – in the event of death – for an<br />
executive's surviving dependants. The switch from defined benefits to defined contributions over the<br />
past two years has made the plan easier to calculate and more transparent for the Group subsidiaries.<br />
For example, the benefit amount no longer depends on final salary but on the development of an<br />
employee's salary throughout their working life. It is also possible to top up postretirement benefits<br />
through deferred compensation.<br />
63<br />
Our future potential<br />
People at ThyssenKrupp<br />
The company pension<br />
scheme is attractive and<br />
calculable.
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