THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

6. CONSOLIDATED INCOME STATEMENT
6.1.Sales Revenue
Sales revenue results mainly from the sale of products. For presentation
of sales by business division and geographical region, we
refer to the segment reporting information presented under note
5 above.
6.2.Other Operating Income
T€
Income from service units
Income from insurance compensation
Income from reversal of provisions
and other liabilities
Rental income
Reversal of valuation allowances
for receivables
Other income
Total
The presentation of prior year figures for other operating income
has been adjusted to improve comparability.
The total for remaining operating income is made up of many
individually immaterial items.
6.3.Personnel Expenses
The following personnel expenses are included in the income statement:
T€
Wages and salaries
Social security charges
Pension expense
(excluding interest expense)
Performance-related remuneration
Total
The unwinding of discount on pension liabilities is included as a
component of the financial result under note 6.8 below.
Annual Report 2008 Symrise AG 117
2007
1,236
193
8,094
715
0
3,990
14,228
2007
-224,886
-46,782
-10,424
-1,978
-284,070
2008
2,433
1,880
1,816
894
424
2,834
10,281
2008
-229,866
-46,640
-6,504
-549
-283,559
As at December 31, 2008, the Group employed 5,219 (2007:
5,046) employees, distributed over the following functions:
Number
Manufacturing and technology
Sales and marketing
Research and development
Administration
Service entities
Trainees
Total
2007
1,900
1,390
901
409
326
120
5,046
2008
1,982
1,420
964
409
322
122
5,219
The average number employed by the Group was 5,152 (prior year:
4,957).
Success-based Remuneration (Long Term Incentive
Program and Strategic Share Bonus):
In 2008, expenses deriving from success-based remuneration
were allocated to the respective functions for which the related
managers had responsibility. In the year 2008, T€ 338 were incurred
as administration expenses and T€ 211 as selling and marketing
expenses. Of these, T€ 466 are included as other current
liabilities and T€ 83 as other noncurrent liabilities.
Long Term Incentive Program
In a meeting dated May 14, 2007, the Supervisory Board, represented
by the Presidential Committee, resolved to introduce a long-term incentive
program which came into effect on January 1, 2008.
The program is based on the “performance cash bonus” concept; i.e.
after expiration of the performance period of three years, the managers
that are entitled under the program receive a variable monetary
bonus depending upon achievement of defined performance
objectives and if the relevant conditions are complied with.
For the four members of the Executive Board, 70% of this performance
cash bonus is based on the development of the share price and
30% is based on the so-called “Symrise Value Added.” A further eight
second level senior managers (so-called “regional presidents”) have
been included in the long-term incentive program. Their bonus entitlement
is based on the same performance criteria but with an equal
weighting (50% respectively) for the share price component and the
“Symrise Value Added” component.
A comparison will be made of the share price at the end of 2010
with the initial share price of € 17.93 as at January 1, 2008. The
terms include a minimum performance expectation of 20% and a
maximum share price limitation (cap). Measurement of the prob-
Notes