Compensation report
Executive Board compensation for the 2007 fiscal year
The full Supervisory Board regularly reviews the structure of the Executive Board compensation system. Specifics regarding the amount of Executive Board compensation are decided by the Human Resources Committee.Executive Board member compensation comprises a fixed annual salary supplemented by variable, performancelinked components.
The fixed component constitutes basic compensation not linked to performance and is paid as a monthly salary; Executive Board members additionally receive supplementary compensation in the form of non-cash benefits. Noncash benefits mostly comprise amounts to be recognized for tax purposes for private use of company cars and accident insurance.
The value of performance-linked compensation depends on the consolidated profit before taxes and the personal performance of the Executive Board members themselves.
In the event of full compliance with the targets, the total cash compensation comprises around 50 percent fixed and 50 percent performance-linked components.
Executive Board compensation also includes pension awards, other awards in the event of termination of office, and participation in the Group's variable compensation arrangements combining long-term incentives with an element of risk.
Effective January 1, 2008, the fixed compensation of the Chairman of the Executive Board was increased to EUR 785,000 p.a., and that of the Executive Board members was raised to EUR 523,000 p.a.
Executive Board compensation for past fiscal years
Amounts paid in 2007 for offices held within the Group comprised EUR 282,000 in fixed compensation (EUR 8,000 to Dr. Herbert Lütkestratkötter, EUR 225,000 to Dr. Hans-Peter Keitel, EUR 37,000 to Dr. Peter Noé and EUR 12,000 to Dr. Martin Rohr) and EUR 742,000 in performance- linked compensation for FY 2006 (EUR 175,000 to Dr. Herbert Lütkestratkötter, EUR 336,000 to Dr. Hans- Peter Keitel, EUR 54,000 to Albrecht Ehlers, EUR 44,000 to Dr. Burkhard Lohr, EUR 115,000 to Dr. Peter Noé and EUR 18,000 to Dr. Martin Rohr).Compensation for the 2007 fiscal year
| (EUR thousand) | Fixed compensation | Performance- linked compensation |
Non-cash benefits | Total 2007 | Total (2006) |
|---|---|---|---|---|---|
| Dr, Lütkestratkötter | 672 | 863 | 12 | 1,547 | [1,060] |
| Dr, Keitel (until 3/2007) | 210 | 269 | 6 | 485 | [1,832] |
| Ehlers | 480 | 616 | 24 | 1,120 | [993] |
| Dr, Lohr | 453 | 582 | 29 | 1,064 | [978] |
| Dr, Noé | 480 | 651 | 18 | 1,149 | [1,053] |
| Dr, Rohr | 453 | 582 | 24 | 1,059 | [973] |
| Executive board total 2007 | 2,748 | 3,528 | 113 | 6,389 | |
| Executive board total 2006 | 3,258 | 3,778 | 117 | 7,153 |
