Siemens 2007 Annual Report Download - page 97

Corporate Governance Report: Compensation Report 97
To compensate him for short-term and long-term pecuniary disadvantages arising
as a result of his change from Merck & Co., Inc., USA, to Siemens AG, Peter Löscher
was promised a total amount of €8.5 million. It was agreed with Peter Löscher that
the Company will add this amount to his defi ned contribution pension account
(BSAV) in January 2008.
Both the number of units and the values of the stock-based compensation compo-
nents are shown in the following table. The stock awards were recorded at the mar-
ket price of the Siemens stock on the date of commitment less the present value of
dividends expected during the holding period, because stock awards are not eligible
to receive dividends. The resulting value amounted to €97.94 (2006: €67.70).
Accordingly, stock-based compensation was as follows:
Stock-based compensation
(Amounts in
number of units or €)(1)
Number of units Fair value of stock awards
Stock awards(2) Stock awards(2)
2007 2006 2007 2006
Peter Löscher(3) 10,211 –1,000,065 –
Dr. Klaus Kleinfeld(3) –5,540 750,000 375,058
Prof. Johannes Feldmayer(4) –3,693 –250,016
Dr. Thomas Ganswindt(5) ––––
Dr. Heinrich Hiesinger(6) 7,658 –750,025 –
Joe Kaeser(7) 7,658 4,432 750,025 300,046
Prof. Dr. Edward G. Krubasik(5) ––––
Rudi Lamprecht 7,658 3,693 750,025 250,016
Heinz-Joachim Neubürger(7) ––––
Dr. Jürgen Radomski 7,658 3,693 750,025 250,016
Prof. Dr. Hermann Requardt(8) 7,658 2,955 750,025 200,054
Dr. Uriel J. Sharef 7,658 3,693 750,025 250,016
Prof. Dr. Klaus Wucherer 7,658 3,693 750,025 250,016
Eduardo Montes(9) 7,658 2,955 750,025 200,054
Prof. Dr. Erich R. Reinhardt(9) 7,658 2,955 750,025 200,054
Prof. Dr. Claus Weyrich(5) (9) ––––
Total 79,133 37,302 8,500,290 2,525,346
(1) The fair value of the stock-based compensation relate to stock awards granted in November 2007 and 2006
for fi scal years 2007 and 2006, respectively. The amounts for 2006 shown in this table are those obtained after
reducing the stock-based compensation in connection with the transfer of Managing Board remuneration to the
hardship fund for BenQ Mobile employees in Germany.
(2) After a holding period of three (2006: four) years, the stock awards will be settled on November 8, 2010
(awards granted for fi scal year 2006 on November 10, 2010). Under the stock award agreement, the eligible
recipients will receive a corresponding number of Siemens shares without additional payment. Dr. Kleinfeld’s
stock-based compensation is settled in cash.
(3) Effective June 30, 2007, Dr. Kleinfeld resigned from his offi ces as a full member of the Managing Board and
as CEO and President of the Managing Board of Siemens AG. The full term of his service agreement would
have expired on September 30, 2007. Effective July 1, 2007, Peter Löscher was elected a full member of the
Managing Board and appointed Chief Executive Offi cer and President of the Managing Board of Siemens AG.
(4) Prof. Feldmayer had been suspended since March 28, 2007 and left the Managing Board, effective September
30, 2007.
(5) Dr. Ganswindt, Prof. Dr. Krubasik and Prof. Dr. Weyrich resigned from the Managing Board,
effective September 30, 2006.
(6) Dr. Hiesinger was elected a full member of the Managing Board, effective June 1, 2007.
(7) On May 1, 2006, Joe Kaeser succeeded Heinz-Joachim Neubürger, who resigned from the Managing Board
on April 30, 2006, as a full member of the Managing Board of Siemens AG.
(8) Prof. Dr. Requardt was elected a full member of the Managing Board, effective October 1, 2006.
(9) Deputy members of the Managing Board.