BMW 2007 Annual Report Download - page 146

144
137 Corporate Governance
137
Members of the Supervisory Board
140
Members of the Board of Management
141 Corporate Governance at BMW Group
142 Compensation Report
146 Shareholdings of Members of
the Board
of Management and
Supervisory Board
147 Declaration of the Board of
Management
and of the Supervisory
Board pursuant to §161 AktG
in euro million 2007 2006
Amount Proportion Amount Proportion
Fixed compensation 0.1 3.6 % 0.1 3.7 %
Variable compensation 2.7 96.4 % 2.6 96.3 %
Total compensation 2.8 100.0 % 2.7 100.0 %
Corporate Governance
2. Compensation of the Supervisory Board
Responsibilities, regulation pursuant to
Articles of Incorporation
The compensation of the Supervisory Board is de-
termined by shareholders’ resolution at the Annual
General Meeting. Compensation is currently based
on shareholders’ resolutions taken at the Annual
General Meeting on 18 May 1999 and § 15 of the
Articles of Incorporation of BMW AG. The Articles of
Incorporation of BMW AG can be accessed via the
Internet.
Components of compensation
Each member of the Supervisory Board receives, in
addition to the reimbursement of expenses, a fixed
amount of euro 6,000 (payable at the end of the
year), a variable amount of euro 1,500 for each per-
cent of the dividend resolved by the shareholders at
the Annual General Meeting in excess of 4 % of the
company’s share capital (common stock). The Chair-
man of the Supervisory Board receives three times
this amount and each deputy receives two times this
amount. The company also reimburses to each
member of the Supervisory Board any value added
tax arising on their remuneration.
The Board of Management and the Supervisory
Board have decided to put forward a resolution at the
Annual General Meeting to be held on 8 May 2008
regarding a new rule for the compensation of the
Supervisory Board. In order to reflect the control and
advisory functions exercised by the Supervisory
Board in a more balanced way in the total compen-
sation amount, it is planned that the fixed proportion
should be raised and the variable proportion reduced.
Under the new rule, the variable compensation will –
subject to a predefined upper limit – be based in the
future on earnings per share (EPS) if EPS is above a
predefined minimum amount. In this way, compen-
sation will be based to a greater extent on the actual
success of the business.
Compensation of the Supervisory Board for
the financial year 2007 (total)
Against the background of the proposed dividend
increase and in anticipation of the new rule that will
be put forward at the Annual General Meeting, all
members of the Supervisory Board have agreed to
an upper limit for their compensation for the financial
year 2007 (see below).
On this basis, the compensation of the Super-
visory Board for activities during the financial year
2007 amounted to euro 2.8 million (2006: euro 2.7
million). This comprised a fixed component of euro
0.1 million (2006: euro 0.1 million) and a variable com-
ponent
of euro 2.7 million (2006: euro 2.6 million).
in euro Fixed remuneration Variable Remuneration Allocation for
Other Fixed remune- remuneration Total year to pension
Salary remuneration ration Total provision
Norbert Reithofer 600,000 15,222 615,222 3,139,200 3,754,422 161,124
Frank-Peter Arndt 300,000 98,199 398,199 1,569,600 1,967,799 84,851
Ernst Baumann 360,000 15,737 375,737 1,818,300 2,194,037 95,394
Herbert Diess1] 75,000 9,662 84,662 392,400 477,062 28,909
Klaus Draeger 300,000 55,900 355,900 1,569,600 1,925,500 85,602
Friedrich Eichiner1] 75,000 11,068 86,068 392,400 478,468 25,157
Michael Ganal 360,000 14,220 374,220 1,818,300 2,192,520 122,013
Stefan Krause 360,000 16,222 376,222 1,818,300 2,194,522 72,557
Total2] 2,430,000 236,230 2,666,230 12,518,100 15,184,330 675,607
1] Member of the Board of Management from 1 October 2007.
2] Group perspective.
Compensation of the individual members of the Board of Management for the financial year 2007