PDF (10.9MB) - ThyssenKrupp AG
PDF (10.9MB) - ThyssenKrupp AG
PDF (10.9MB) - ThyssenKrupp AG
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To our shareholders<br />
1.3 To our shareholders Corporate governance report<br />
The Mid-Term Incentive Plan encourages<br />
Alongside the Executive Board, further<br />
and rewards value-oriented executive<br />
executives receive part of their<br />
behavior.<br />
remuneration in the form of share-based<br />
compensation.<br />
36 | 37<br />
Total compensation paid to active members of the Executive Board for their work in fiscal year 2010/2011<br />
amounted to €13.8 million (prior year: €12.3 million). The performance bonus is based on continuing<br />
operations. The impairment losses in the Steel Americas business area were not taken into consideration.<br />
Based on a contractual commitment that no longer applies to subsequently appointed Executive Board<br />
members, Prof. Dr.-Ing. Schulz will continue to receive a chauffeur-driven car and specific insurance benefits<br />
for a period of five years after entering into retirement on account of his having served on the Executive<br />
Board for over ten years; he is also entitled to an office with secretary for five years on account of his efforts<br />
for the Company; the present value of this is €935,000. The Company has recognized pension provisions for<br />
the future pension entitlements on the basis of IFRS.<br />
No further benefits have been promised to any Executive Board members in the event that they leave their<br />
post. In the reporting year, no members of the Executive Board received benefits or corresponding promises<br />
from third parties in connection with their Executive Board positions. As in previous years, no loans or<br />
advance payments were granted to members of the Executive Board, nor were any guarantees or other<br />
commitments entered into in their favor.<br />
The 6th installment of the MTI, which became due in the past fiscal year, resulted in no payment due to the<br />
sharp drop in TKVA in 2009/2010. In January 2011 the Executive Board members were granted new stock<br />
rights under the 1st installment of the LTI. Under the 7th to 8th installments of the MTI and the 1st<br />
installment of the LTI the Executive Board members have a total of 245,331 stock rights which have been<br />
awarded but are not yet payable.<br />
Total compensation paid to former members of the Executive Board and their surviving dependants<br />
amounted to €14.6 million (prior year: €14.5 million). In accordance with IFRS an amount of €192.7 million<br />
(prior year: €190.6 million) was accrued for pension obligations benefiting former Executive Board members<br />
and their surviving dependants.<br />
Share-based compensation for further executives<br />
Alongside the Executive Board, further selected executives of the Group receive part of their remuneration in<br />
the form of share-based compensation. This relates to the MTI and also to a program for the purchase of<br />
<strong>ThyssenKrupp</strong> shares at a discount.<br />
The aim of the MTI is to encourage and reward value-oriented executive behavior based on the Group’s<br />
goals, and also to help strengthen ties with the Group. Beginning with the 2nd installment of the MTI, issued<br />
in 2004, the group of employees eligible to receive stock rights was expanded on modified terms to include<br />
the executive board members of the then segment holding companies and other selected executives. Today<br />
the participants in the plan include the members of the business area management boards as well as<br />
management board members and selected executives of large Group companies. The MTI for this group of<br />
persons resulted in expense of €3.0 million in the reporting year (prior year: expense of €4.0 million).<br />
In addition, the 2009/10 discount share purchase plan for selected executives of the Group in Germany who<br />
are not beneficiaries of the MTI ended in the 2nd quarter of the reporting year. On expiration of the<br />
performance period, beneficiaries were offered the opportunity to purchase <strong>ThyssenKrupp</strong> shares up to a<br />
fixed euro amount at a discount, which was paid by the employer. The remaining amount was paid by the<br />
participants as their contribution. The discount amount depended on the (Group) TKVA over the<br />
performance period and came to 76%. The shares purchased under the program have a three-year lock-up<br />
period. The program resulted in an expense of €8.6 million (prior year: €0.9 million).