Siemens 2007 Annual Report Download - page 105

Corporate Governance Report: Compensation Report 105
items. The long-term compensation which was introduced as of the fi scal year begin-
ning on October 1, 2004 will be payable on a pro rata basis upon expiration of the
current Supervisory Board’s term of offi ce, i.e. after the close of the Annual Share-
holders’ Meeting on January 24, 2008. The required increase, determined on a pro
rata basis, in earnings per share compared to the beginning of the term of offi ce was
achieved.
The Chairman of the Supervisory Board receives double, and each Deputy Chairman
1.5 times, the amounts of the fi xed compensation and the short-term variable com-
pensation of an ordinary member. Each member of the committees and additionally
the chairmen of these committees (in each case other than the Chairman’s Commit-
tee, the Mediation Committee, and the Ownership Rights Committee) each receive an
additional half of the fi xed and the short-term variable compensation. The members
of the Supervisory Board are reimbursed for any out-of-pocket expenses incurred in
connection with their duties and for any sales taxes to be paid on their remuneration.
In consideration for the performance of his duties, the Chairman of the Supervisory
Board is furthermore entitled to an offi ce with secretarial support and use of the
Siemens carpool service.
Under an existing agreement that was extended after the Annual Shareholders’ Meet-
ing 2003 on unchanged terms and conditions and that will expire after the Annual
Shareholders’ Meeting on January 24, 2008, Peter von Siemens, as a member of the
founder’s family, is entitled to reimbursement of expenses and the provision of a
company car and offi ce with secretarial support for representing the Company at
offi cial events in Germany and abroad, as well as in various associations.
No loans from the Company are provided to members of the Supervisory Board.
3. Other
The members of the governing bodies of Siemens and all board members of its
domestic and foreign subsidiaries are indemnifi ed by Siemens 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 fi nancial 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 fi xed sala-
ry. 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 fi xed compensation
component (i.e. a deductible within the meaning of Section 3.8, paragraph 2, of the
German Corporate Governance Code).