BMW 2015 Annual Report Download - page 120

120
four years. Once the holding period is fulfilled, BMW AG
grants one additional share of BMW AG common stock
for each three held or, at its discretion, pays the equiva-
lent
amount in cash (share-based remuneration com-
ponent). Special rules apply in the case of death or in-
validity of a Board of Management member or early
termination of the contractual relationship before ful-
filment of the holding period.
With effect from the financial year 2012, qualifying
senior heads of department are also entitled to opt for a
share-based remuneration component, which, in most
respects, is
comparable to the share-based remunera-
tion arrangements
for Board of Management members.
The share-based remuneration component is measured
at its fair value at each balance sheet date between grant
and settlement date, and on the settlement date itself.
The appropriate amounts are recognised as personnel
expense on a straight-line basis over the vesting period
and reported in the balance sheet as a provision.
The cash-settlement obligation for the share-based re-
muneration component is measured at its fair value at
the balance sheet date (based on the closing price of
BMW AG common stock in Xetra trading at 31 Decem-
ber 2015).
The total carrying amount of the provision for the share-
based remuneration component of current and former
Board of Management members and senior heads of
department at
31 December 2015 was € 4,989,668 (2014:
€ 3,096,674).
The total expense recognised in 2015 for the share- based
remuneration component of current and former Board
of Management members and senior heads of depart-
ment was
€1,892,994 (2014: €1,449,486).
The fair value of the programmes for Board of Manage-
ment members and senior heads of department at the
date of grant of the share-based remuneration compo-
nents was € 1,605,147 (2014: € 1,479,939), based on a
total of
18,143 shares (2014: 17,712 shares) of BMW AG
common stock or a corresponding cash-based settle-
ment measured at the relevant market share price pre-
vailing on the grant date.
Further details on the remuneration of the Board of
Management are provided in the 2015 Compensation
Report, which is part of the Combined Management
Report.
90 GROUP FINANCIAL STATEMENTS
90 Income Statements
90 Statement of
Comprehensive Income
92 Balance Sheets
94 Cash Flow Statements
96 Group Statement of Changes in
Equity
98 Notes
98 Accounting Principles and
Policies
113 Notes to the Income Statement
121 Notes to the Statement
of Comprehensive Income
122
Notes to the Balance Sheet
147 Other Disclosures
163 Segment Information