Siemens 2008 Annual Report Download - page 131

Rudi Lamprecht, Eduardo Montes, Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer agreed to an early mutual ter-
mination of their assignment and employment contracts effective December 31, 2007. Mr. Montes received sev-
erance pay in the amount of €6.12 million, and Mr. Lamprecht, Dr. Sharef and Prof. Dr. Wucherer each received
€3.372 million. The amount and the composition of each severance payment was determined primarily on the
basis of the full remaining term of the terminated employment contract and in consideration of the variable
and the stock-based compensation components provided for in the contract. Of the amounts involved, €1.872
million, or €3.12 million in the case of Mr. Montes, relate to the settlement of bonus payments, and €1.5 million,
or €3.0 million in the case of Mr. Montes, to the settlement of stock-based compensation. It was agreed in each
case to perform a recalculation of the severance payments due to Managing Board members after the close of
the scal year on the basis of the actual degrees of target achievement, which may result in a payment claim or
a refund obligation on the part of the Managing Board member concerned vis-à-vis the Company. On November
12, 2008, the Chairman‘s Committee of the Supervisory Board resolved, in view of the damage claims asserted
against former Managing Board members, to exercise a right of lien or retention on payments in satisfaction of
valid claims by Mr. Lamprecht, Dr. Sharef and Prof. Dr. Wucherer with regard to scal year 2008.
In settlement of their respective contractual entitlement to transitional payments, Mr. Lamprecht received €1.56
million, and Dr. Sharef and Prof. Dr. Wucherer each received €1.872 million.
In addition, consulting agreements were signed under which Mr. Lamprecht, Mr. Montes, Dr. Sharef and Prof. Dr.
Wucherer, after leaving the Managing Board, are to provide consulting services to the Company for a monthly
consulting fee of €78,000 each (Mr. Lamprecht, Dr. Sharef and Prof. Dr. Wucherer) and €65,000 (Mr. Montes),
respectively, in particular on the integration of the former operating Groups for which they had been responsi-
ble into the new Sector structure, and to cooperate and assist in the transition of existing business contacts to
their respective successors.
During the term of their consulting agreements, Mr. Lamprecht, Mr. Montes, Dr. Sharef and Prof. Dr. Wucherer
are entitled to contributions to their respective Siemens Dened Contribution Benet Plan (BSAV).
The existing consulting agreement with Mr. Montes runs until October 31, 2011. The consulting agreement
entered into with Dr. Sharef was terminated as of September 30, 2008, while the consulting agreements with
Prof. Dr. Wucherer and Mr. Lamprecht were terminated as of December 31, 2008 and March 31, 2009, respec-
tively.
With regard to his mutually agreed early resignation from the Managing Board, Prof. Dr. Erich R. Reinhardt’s
contract of employment was replaced by a service agreement expiring on March 31, 2011 providing for a target
annual compensation in the amount of €1.56 million. Prof. Dr. Reinhardt will continue to serve the Company in
a consultative capacity.
Corporate Governance Report: Compensation Report 35