Landesbank Berlin Holding

40
Group management report Overview of the Group
Criteria for the measurement of fixed and variable
remuneration components are the responsibilities
of the respective member of the Board of Management,
his personal performance, the performance
of the body as a whole and the economic situation,
success and prospects of the division for which he
is responsible as well as the Company as a whole.
The amount of variable component is also dependent
on the fact that the success achieved proves
to be sustainable. In setting total remuneration, its
appropriateness is reviewed with the help of a comparison
of the remuneration of managers at other
German companies in the financial sector of a similar
size and complexity on the one hand and the salary
and wage structures within the Company itself on
the other. The fixed and variable remuneration of the
members of the Board of Management are appropriate
in relation to each other so that there is no
significant dependence on variable remuneration
but it can still provide an effective incentive. Overall,
the remuneration system is designed so that negative
incentives for taking disproportionately high
risks are avoided.
The Board of Management of the Holding consisted
of its Chairman Dr. Johannes Evers and Dr. Thomas
Veit as of 31 December 2010. At the same time,
they were also members of the Board of Management
of LBB. As of 31 December 2010, Messrs Serge
Demolière, Hans Jürgen Kulartz, Martin K. Müller
and Patrick Tessmann were also members of the
Board of Management of LBB.
Mr. Tessmann was appointed to the Board of Management
of LBB effective 1 April 2010. Mr. Vetter left
the Board of Management of the Holding and LBB
as of 31 December 2010. The Supervisory Board
of the Holding appointed Mr. Müller to the Board of
Management of the Holding from 1 January 2011
and the Supervisory Board of LBB appointed
Mr. Jan Bettink, Chairman of the Board of Management
of Berlin-Hannoversche Hypothekenbank AG
until 31 December 2010, to the Board of Management
of LBB effective 1 January 2011.
Notwithstanding the appointments as members of
the Holding’s Board of Management, the Board
of Management contracts, supply agreements and
comparable contracts for the members of the
Holding’s Board of Management are with LBB, for
which the vast majority of their work is undertaken.
For all members of the Board of Management, the
individual rights and duties resulting from their
membership of the Board of Management are thus
regulated through their contracts of employment
with LBB.
On this contractual basis, LBB pays all the Board of
Management remuneration for the members of the
Board of Management acting for both companies. In
return, it receives compensation from the Holding
based on time spent amounting to a monthly lump
sum of € 5 thousand per Board of Management
member and € 6 thousand for the Chairman of the
Board of Management. Accordingly, the Holding
reimbursed LBB € 132 thousand in 2010 (previous
year: € 128 thousand).
The Holding and LBB have concluded an appropriate
Group general insurance policy covering economic
losses by third parties (D & O insurance) for the
members of their executive bodies. This also covers
the personal liability of members of the Boards of
Management of the Holding and LBB in the event
that claims are made against the group of persons
in question for economic losses incurred in carrying
out their work. A deductible, as defined in the
German Corporate Governance Code, amounting to
three months’ fixed salary was initially agreed for
members of the Board of Management. In line
with the legal provisions of Article 93 (2) AktG, a