Siemens 2008 Annual Report Download - page 141

The dened benet obligation (DBO) of all pension commitments to members of the Managing Board as of
September 30, 2008 amounted to €27.6 million (2007: €46.0 million), which amount is included in Note 24 of
the “Notes to Consolidated Financial Statements.”
Former members of the Managing Board and their surviving dependents received emoluments within the mean-
ing of § 314 (1), no. 6 b of the HGB totaling €22.7 million (2007: €16.0 million) for the year ended September 30,
2008.
The dened benet obligation (DBO) of all pension commitments to former members of the Managing Board
and their surviving dependents as of September 30, 2008 amounted to €146.0 million (2007: €134.8 million),
which amount is included in Note 24 of the “Notes to Consolidated Financial Statements.”
Other – No loans from the Company are provided to members of the Managing Board.
2. Supervisory Board remuneration
The remuneration of the members of the Supervisory Board was determined at the Annual Shareholders’
Meeting through shareholder approval of a proposal by the Managing and Supervisory Boards. Details of the
remuneration are set forth in the Articles of Association of Siemens AG.
The remuneration of the members of the Supervisory Board is based on the Company’s size, the assignments
and responsibilities of the Supervisory Board members, and the Company’s overall business position and per-
formance. In addition to a xed compensation component, the remuneration includes variable compensation
based on the Company’s short-term and long-term performance. The Chairman, the Deputy Chairmen, as well
as the Chairman and the members of the Audit Committee receive additional compensation. The members of
the other committees of the Supervisory Board do not receive additional compensation for these services in
scal year 2008.
The current remuneration policies for the Supervisory Board were authorized at the Annual Shareholders’
Meeting of January 27, 2005. Details are set out in § 17 of the Articles of Association of Siemens AG.
As a result, the remuneration of Supervisory Board members for scal year 2008 includes three components:
a xed compensation component,

a short-term compensation component based on earnings per share, and 
a long-term compensation component based on earnings per share. 
In accordance with these remuneration policies, each Supervisory Board member receives xed compensation
of €50,000 per year and short-term variable compensation of €150 per year for each €0.01 of earnings per share
as disclosed in the Consolidated Financial Statements in excess of a minimum amount of €1.00. This minimum
amount has been increased annually by 10 percent, beginning with the scal year starting on October 1, 2005.
In addition, long-term compensation in the amount of €50,000 is granted, payable after expiration of the then
applicable ve-year term of the Supervisory Board. It was paid last time after the close of the Annual Sharehold-
ers’ Meeting on January 24, 2008. This long-term compensation will only be paid if earnings per share at the
end of the Supervisory Board’s term of ofce have increased by more than 50 percent compared to the begin-
ning of the term of ofce. Earnings per share, on which the calculation of the Supervisory Board’s remuneration
is based, has to be adjusted for signicant extraordinary items. For scal year 2008, the Supervisory Board’s
remuneration was determined on the basis of earnings per share in the amount of €6.26, after adjustment for
signicant extraordinary items.
Corporate Governance Report: Compensation Report 45