Engineering

To our shareholders
1.3 To our shareholders Corporate governance report
The Mid-Term Incentive Plan encourages
Alongside the Executive Board, further
and rewards value-oriented executive
executives receive part of their
behavior.
remuneration in the form of share-based
compensation.
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Total compensation paid to active members of the Executive Board for their work in fiscal year 2010/2011
amounted to €13.8 million (prior year: €12.3 million). The performance bonus is based on continuing
operations. The impairment losses in the Steel Americas business area were not taken into consideration.
Based on a contractual commitment that no longer applies to subsequently appointed Executive Board
members, Prof. Dr.-Ing. Schulz will continue to receive a chauffeur-driven car and specific insurance benefits
for a period of five years after entering into retirement on account of his having served on the Executive
Board for over ten years; he is also entitled to an office with secretary for five years on account of his efforts
for the Company; the present value of this is €935,000. The Company has recognized pension provisions for
the future pension entitlements on the basis of IFRS.
No further benefits have been promised to any Executive Board members in the event that they leave their
post. In the reporting year, no members of the Executive Board received benefits or corresponding promises
from third parties in connection with their Executive Board positions. As in previous years, no loans or
advance payments were granted to members of the Executive Board, nor were any guarantees or other
commitments entered into in their favor.
The 6th installment of the MTI, which became due in the past fiscal year, resulted in no payment due to the
sharp drop in TKVA in 2009/2010. In January 2011 the Executive Board members were granted new stock
rights under the 1st installment of the LTI. Under the 7th to 8th installments of the MTI and the 1st
installment of the LTI the Executive Board members have a total of 245,331 stock rights which have been
awarded but are not yet payable.
Total compensation paid to former members of the Executive Board and their surviving dependants
amounted to €14.6 million (prior year: €14.5 million). In accordance with IFRS an amount of €192.7 million
(prior year: €190.6 million) was accrued for pension obligations benefiting former Executive Board members
and their surviving dependants.
Share-based compensation for further executives
Alongside the Executive Board, further selected executives of the Group receive part of their remuneration in
the form of share-based compensation. This relates to the MTI and also to a program for the purchase of
ThyssenKrupp shares at a discount.
The aim of the MTI is to encourage and reward value-oriented executive behavior based on the Group’s
goals, and also to help strengthen ties with the Group. Beginning with the 2nd installment of the MTI, issued
in 2004, the group of employees eligible to receive stock rights was expanded on modified terms to include
the executive board members of the then segment holding companies and other selected executives. Today
the participants in the plan include the members of the business area management boards as well as
management board members and selected executives of large Group companies. The MTI for this group of
persons resulted in expense of €3.0 million in the reporting year (prior year: expense of €4.0 million).
In addition, the 2009/10 discount share purchase plan for selected executives of the Group in Germany who
are not beneficiaries of the MTI ended in the 2nd quarter of the reporting year. On expiration of the
performance period, beneficiaries were offered the opportunity to purchase ThyssenKrupp shares up to a
fixed euro amount at a discount, which was paid by the employer. The remaining amount was paid by the
participants as their contribution. The discount amount depended on the (Group) TKVA over the
performance period and came to 76%. The shares purchased under the program have a three-year lock-up
period. The program resulted in an expense of €8.6 million (prior year: €0.9 million).