BMW 2009 Annual Report Download - page 156

154
140 Statement on
Corporate Governance
(Sub-section of Management Report)
140 Information on the Company’s
Governing Constitution
141 Declaration of the Board of
Management and of the Supervisory
Board pursuant to § 161 AktG
142 Members of the Supervisory Board
145
Members of the Board of
Management
146 Information on Work Procedures of
the Management Board and
Supervisory Board
151 Compensation Report
157 Information on Corporate
Governance Practices
158 Compliance in the BMW Group
concerned would have reached the age of 60. At the
changeover to the new system, current members of the
Board of Management will be credited with a starting bal-
ance of equivalent value to entitlements already vested.
The starting balance and all contributions subsequently
credited to board members under the new scheme are
externally financed in conjunction with a trust model that is
also used to fund pension obligations to employees.
Pensions are increased annually by at least 1 %.
Income earned on an employed or a self-employed basis
up to the age of 63 is offset against the pension entitle-
ment. In addition, certain circumstances have been speci-
fied in the event of which the Company no longer has any
obligation to pay benefits. In such cases, no transitional
payments are made either.
In the case of a board member’s mandate being terminat-
ed early without important reason, there are no contractual
commitments to pay compensation. Similarly, there are
no
commitments to pay compensation for early termination
in the event of a change of control or a takeover offer. No
members of the Board of Management received any pay-
ments or benefits from third parties in 2009 on account of
their activities as the members of the Board of Management
of BMW AG.
Compensation of the Board of Management for the
finan cial year 2009 (total)
The total remuneration of the current members of the Board
of Management of BMW AG for the financial year 2009,
subject to approval by the Supervisory Board, amounted
to euro 10.7 million (2008: euro 10.9 million). This com-
prises fixed components (including other remuneration) of
euro 3.7 million (2008: euro 3.1 million) and variable com-
ponents of euro 7.0 million (2008: euro 7.8 million).
in euro million 2009 2008
Amount Proportion Amount Proportion
in % in %
Fixed remuneration 3.7 34.6 3.1 28.4
Variable remuneration 7.0 65.4 7.8 71.6
Total remuneration 10.7 100.0 10.9 100.0
in euro Fixed compensation Variable Compensation Allocation for
Other compensation Total year to pension
Salary compensation Total provision1
Norbert Reithofer 840,000 16,215 856,215 1,725,000 2,581,215 131,815
(600,000) (16,271) (616,271) (1,650,000) (2,266,271) (124,912)
Frank-Peter Arndt 440,000 23,591 463,591 910,417 1,374,007 73,233
(300,000) (19,708) (319,708) (825,000) (1,144,708) (69,327)
Herbert Diess 420,000 13,773 433,773 862,500 1,296,273 93,685
(300,000) (29,762) (329,762) (825,000) (1,154,762) (89,930)
Klaus Draeger 430,000 74,237 504,237 886,458 1,390,696 74,495
(300,000) (26,276) (326,276) (825,000) (1,151,276) (70,871)
Friedrich Eichiner 420,000 93,785 513,785 862,500 1,376,285 86,612
(300,000) (23,516) (323,516) (825,000) (1,148,516) (81,547)
Harald Krüger 420,000 78,028 498,028 862,500 1,360,528 51,300
(25,000) (2,777) (27,777) (68,750) (96,527) (4,616)
Ian Robertson 420,000 54,993 474,993 862,500 1,337,493 189,682
(240,323) (102,938) (343,261) (660,887) (1,004,148) (133,533)
Total23,390,000 354,622 3,744,622 6,971,875 10,716,497 700,822
(2,801,775) (304,134) (3,105,909) (7,814,570) (10,920,479) (819,331)
1 includes service cost
2 Figures for the previous year include the remuneration of members of the Board of Management who left office during the financial year 2008.
Compensation of the individual members of the Board of Management for the financial year 2009 (2008)
In addition, an expense of euro 0.7 million (2008: euro
0.8 million) was recognised for current members of the
Board of Management for the period after the end of their
service relationship. This relates to the expense for allo-
cations
to pension provisions (service cost).
The amount paid to former members of the Board of
Management and their surviving dependants was euro
3.8
million (2008: euro 3.1 million). Pension obligations
to former members of the Board of Management and their