Siemens 2005 Annual Report Download - page 87

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Corporate Governance Report
Compensation Report
Group Presidents Business Areas Megatrends Report of the Supervisory Board
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3. Stock ownership by members of the Managing and Supervisory Boards
As of October 15, 2005, members of the Managing Board held a total of 1,104,459 (2004: 1,000,014)
Siemens shares and stock options on Siemens shares, representing 0.124 percent (2004: 0.112 per-
cent) of the capital stock of Siemens AG. As of October 15, 2005, members of the Supervisory
Board held 185,544 (2004: 18,824) Siemens shares and stock options on Siemens shares, repre-
senting 0.021 percent (2004: 0.002 percent) of the capital stock of Siemens AG. These figures do
not include 10,786,521 (2004: 16,364,977) shares, or 1.2 percent (2004: 1.8 percent) of the capital
stock that are held by the von Siemens-Vermögensverwaltungs GmbH (vSV) – a German limited
liability entity that functions much like a trust – and 38,102,921 (2004: 38,685,250) shares, or
some 4.3 percent (2004: 4.3 percent) of the capital stock, over which the vSV has voting control
under a power of attorney. Peter von Siemens is authorized to vote these shares as a representa-
tive of the founder’s family.
4. Other
The members of the governing bodies of Siemens AG and all board members of its domestic
and foreign subsidiaries are indemnified by Siemens AG or its subsidiaries against third-party
liability claims to the extent permitted by law. For this purpose, the Company provides a group
insurance policy for board and committee members and employees of the Siemens organization
which is taken out for one year and renewed annually. The insurance covers the personal liability
of the insured in the case of a financial loss associated with employment functions. In such a case,
the Company may, with effect from October 1, 2005, hold members of the Managing Board liable
for such loss up to an amount equivalent to 20 percent of the fixed salary. In the same way, each
member of the Supervisory Board has individually agreed to be held liable up to an amount
equivalent to 20 percent of the fixed compensation component (i.e., a deductible within the
meaning of Section 3.8, paragraph 2, of the German Corporate Governance Code).