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METRO gROUP : ANNUAL REPORT 2011 : BUsiNEss
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47. Notes on related parties
In 2011, MeTRo GRoUp maintained the following business
relations to related companies:
€ million 2010 2011
Goods/services provided 3 3
Goods/services received 108 60
Receivables from goods/services provided 1 0
liabilities from goods/services received 0 3
In the financial year 2011, MeTRo GRoUp companies provided
goods/services totalling €3 million to companies included in
the group of related companies. This concerns primarily the
granting of energy and lease rights.
The goods/services totalling €60 million that MeTRo GRoUp
companies received from related companies in the financial
year 2011 consist primarily of property leases. The decline in
goods/services received is essentially due to the termination
of leases with related parties or rent adjustments in existing
leases.
The basic principles of the remuneration system and the
amount of Management and supervisory Board compensation
are included in the remuneration report, which is part of
the management report.
Business relations with related parties are based on contractual
agreements providing for arm’s length prices. as in
2010, MeTRo GRoUp had no business relations with related
natur al persons in the financial year 2011.
48. share-based compensation for executives
MeTRo aG has been implementing share-based payments
programmes since 1999 to enable executives to participate in
the Company’s value development and reward their contribution
to the sustained success of MeTRo GRoUp compared
with its competitors. The members of the Management Board
and other executives of MeTRo aG as well as managing directors
and executives of the other operating MeTRo GRoUp
companies are eligible.
Share bonus programme (2004–2008)
The final tranche of the share bonus programme, which
MeTRo aG introduced in 2004, was granted in 2008. The
programme entitles executives to cash bonuses whose size
→ p. 244
depends on the performance of the Metro share and the parallel
consideration of benchmark indices. The programme is
divided into a tranche for each year, with the target parameters
being calculated separately for each tranche. The full
share bonus is paid out when the target share price and a socalled
equal performance of the share with benchmark indices
are attained. The maturity of each tranche is three years.
The payment of the share bonus may be limited to the amount
of the gross fixed salary. The conditions for the tranches 2004
to 2008 are shown in the following table:
Tranche Due Basis price Target price status
2004 July 2007 €37.14 €42.71 paid
2005 July 2008 €41.60 €47.84 expired
2006 July 2009 €43.15 €49.62 expired
2007 July 2010 €61.61 €70.85 expired
2008 July 2011 €41.92 €48.21 paid
Performance share plan and share ownership
guidelines (2009–2013)
In 2009, MeTRo aG replaced the previous share bonus programme
with a performance share plan.
executives are given an individual target amount for the performance
share plan (target value) in accordance with the
significance of their functional responsibilities. The target
number of performance shares is calculated by dividing this
target value by the share price upon allotment, based on the
average price of the Metro share during the three months up
to the allotment date. a performance share entitles its holder
to a cash payment matching the price of the Metro share on
the payment date, based on the average price of the Metro
share during the three months up to the payment date.
Based on the relative performance of the Metro share compared
to the median of the DaX 30 and Dow Jones euro stoxx Retail
indices – total return – the final number of payable performance
shares is determined after the end of a performance period of
at least 3 and at most 4.25 years. It corresponds to the target
number of shares when an equal performance with said stock
market indices is achieved. Up to an outperformance of 60 percent,
the number increases on a straight-line basis to a maximum
of 200 percent of the target amount. Up to an underperformance
of 30 percent, the number is accordingly reduced to a
minimum of 50 percent. In the case of an underperformance of
more than 30 percent, the number is reduced to 0.