Operations and Business Environment - Fresenius Medical Care

02. 3
Our Fiscal year
82
Stock Option Plan
Via stock option plans, management also participates
in the Company’s economic success. At the General
Meeting on May 9, 2006, shareholders approved a
new stock option program which is directly linked to
the Company’s success. Managerial staff members will
receive up to five million options for ordinary bearer
shares over the next five years, which are exercisable
after a period of three years, if the adjusted earnings
per share (EPS) hurdle of 8 % is reached in each year
of the waiting period. If this hurdle is achieved in only
one or two years, the options are reduced accordingly.
If the hurdle is not achieved at all, the options are
cancelled. The new stock option program 2006 enables
managers to participate in the financial risks and
opportunities of the Company and offers them an
internationally competitive remuneration system in
the future.
In 2006, about 550 managerial staff of Fresenius Medical
Care participated in the Company’s success through
this program. Further information on the stock option
plan can be found in the financial report
from page 86
onwards (note 15).
Compliance
For us, compliance means adhering to defined ethical
and legal guidelines as part of our business activities.
Following our compliance guidelines voluntarily is
an integral part of our corporate culture. Fresenius
Medical Care’s Compliance Program is one of the most
demanding in our industry. It is implemented in all
of our business regions. Thus, our guidelines apply in
every country where we have subsidiaries.
The local compliance officers took center stage in our
work in 2006. During a meeting at the Company’s
headquarters, they had the opportunity to exchange
their experiences, subsequently using them in their
daily working routine. Compliance officers play an important
role. They ensure that the Company adheres
to the same high ethical and legal standards around
the world and that each employee is fully informed
about our code of conduct and its goals. At the same
time, they are responsible for related training and
ensure compliance with the guidelines. Compliance
officers act as contacts for our employees and can be
reached via special telephone numbers, by e-mail or
in person.
Procurement and Logistics
The procurement of raw materials and semi-finished
products as well as the transport of products to patients,
dialysis clinics and hospitals are important factors for
the economic success of Fresenius Medical Care.
The main task of procurement is to purchase safe, highquality
materials and semi-finished products at favorable
conditions. To this end, we continually analyze the
international procurement markets and pool the needs
of Fresenius Medical Care worldwide as far as possible.
We achieve additional advantages by means of purchasing
alliances arising from similar needs. Both our
customers and our suppliers take advantage of these
alliances. While our customers benefit from the stable
quality of the products and the fact that their supply
needs are met reliably, our suppliers profit from centralized
administration, the high degree of standardization
and the bundling of bulk orders.
Teams consisting of staff members who perform different
functions, work for different companies and come
from different countries define appropriate purchasing
strategies for the individual products. The procurement
Profit sharing
Year 1 2006 2005 2004 2003 2002
Bonus in €
Number of eligible employees
1,000
2,436
1,000
2,298
1,000
2,101
1,050
1,768
956
1,624
1
Profit sharing is paid retroactively and reflects the Fresenius Group EBIT for the previous year.
Fresenius Medical Care 2006