Siemens 2009 Annual Report Download - page 145

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 Managing Board statements, Independent auditors’ report, Additional information
95 Net assets position 97 Report on post-balance sheet date events
98 Risk report
108 Information required pursuant to
§315 (4) HGB of the German Commercial
Code and explanatory report
114 Compensation report
114 Report on expected developments
Building a Global diverse talent pipeline for leaders and ex-
perts is essential for sustainable success of Siemens. Compa-
nies that systematically nurture diversity can support opportu-
nities for growth more quickly and have a better understand-
ing of their customers. In November 2008, we appointed a
Chief Diversity Officer (CDO) responsible for our global Diver-
sity Initiative which aims to foster and utilize the diversity of
talent provided by Siemens’ global presence.
For the past few years Siemens has systematically identified
so-called “Top Talents” early in their careers. We offer them
challenging and rewarding tasks, consistently foster their
development, and groom them for leadership positions. To re-
main in the pool of Top Talents, employees must show both
high potential and consistently outstanding performance. The
pool of Top Talents included more than 2,700 individuals in fis-
cal year 2009, almost 500 more compared to 2008. 57% of our
Top Talents are living and working outside of Germany.
Aside excellent managerial talents Siemens success relies
heavily on outstanding individuals with a talent for innovation
in technical and engineering roles who can deliver the quality
ideas that ultimately fuel our business. We seek to advance
and develop these people, to help them make the most of their
abilities. We do that through our Key Experts career track. In
fiscal 2009, the pool of our Key Experts grew to 417 exceptional
individuals.
Leadership culture & development are strategic value drivers.
This is why we set up the Global Learning Board in 2009. This
body is tasked with defining a binding global learning portfolio
aligned to our Fit42010 program and its objectives. Siemens
Leadership Excellence (SLE) and Learning Campus, two corpo-
rate-level organizations, are responsible for implementing this
portfolio. SLE prepares up-and-coming managers for their
future tasks by teaching them valuable strategies and familiar-
izing them with useful management skills, tools, methods and
procedures. The program was launched in fiscal year 2006.
As of September 30, 2009, more than 2,000 senior managers
have taken part in SLE courses, compared to 1,100 at the end of
The non-financial performance measures included in Fit42010
are grouped into four categories: People Excellence, Port-
folio, Operational Excellence and Corporate Responsibility.
We describe these four categories as operational “levers” that
enable us to achieve our financial performance targets.
People Excellence is fundamental to organizational excel-
lence. We therefore aim to attract, develop and retain the best
and brightest employees worldwide, delivering outstanding
results in a high performance culture. Our practical approach
to people excellence includes the following key levers: High
performance culture (e.g. Remuneration System, Share Match-
ing Plan), Global diverse talents (e.g. Diversity Initiative, Top
Talents, Key Experts), Leadership culture & development (e.g.
Siemens Leadership Excellence Programs, Global Learning
Board), and our Performance Management Process (PMP).
In a High performance culture every individual is striving for
their personal best to achieve set targets. Siemens has intro-
duced a bonus component of variable compensation that is
mandatory worldwide for top executive management and
senior management. The bonus is composed of various target
categories: Unit Performance (also against competition), Indi-
vidual Performance and Siemens Performance, thus striving
for and ensuring high performance on all levels.
With the clear intention to foster an equity culture in the Com-
pany, Siemens AG has also introduced a Share Matching Plan
to enable our people to share in the Company ’s success and to
help them to accumulate assets. Under the terms of this equity
program, participating employees receive one free Siemens
share for every three shares they have purchased provided the
latter are retained for a period of three years. The amount that
can be invested is defined as a percentage of bonus (for senior
management) respective a percentage of annual income (for
non senior management). 75% of senior managers took up the
offer in the first wave mid-November until mid-December
2008 in seven selected countries. The participation rate for
non- senior management accounted for 69% in Germany and
16% in the USA.