Siemens 2010 Annual Report Download - page 102

6 To our shareholders 21 Corporate Governance
23 Corporate Governance report
29 Corporate Governance statement pursuant to §a
of the German commercial code (HGB) (part of the
Combined management’s discussion and analysis)
30 Compliance report
34 Compensation report (part of Notes to
Consolidated Financial Statements)

Variable cash compensation component (bonus). In setting
the targets for the variable cash compensation component
(bonus) at the beginning of fiscal , the Supervisory Board
took into account that the Company’s business has felt the re-
percussions of the worldwide economic and financial crisis:
> Given the uncertainty in the financial markets at the begin-
ning of the fiscal year, the Supervisory Board assigned pri-
mary priority to safeguarding adequate liquidity, and al-
lowed for that fact in weighting the target parameters.
>
Based on a reported ROCE of .% in fiscal , in determin-
ing the target ROCE for fiscal  the Supervisory Board
took into account that the Company was expecting a de-
crease in organic revenue because of the economic and
financial crisis.
>
In fiscal , Siemens was able to maintain its revenue
stable at the prior-year’s level, notwithstanding the eco-
nomic and financial crisis. Nevertheless, on a comparable
basis the Company’s new orders decreased about % as a
result of the economic conditions. This development
prompted the Supervisory Board to adjust the targets for
organic revenue growth for fiscal , with a view to setting
a goal that, while ambitious, was nonetheless realistic.
is no entitlement to a severance payment if the member of the
Managing Board receives benefits from third parties in connec-
tion with the change of control. Moreover, there is no right to
terminate if the change of control occurs within a period of
twelve months prior to a Managing Board member‘s retire-
ment.
. REMUNERATION FOR THE MEMBERS
OF THE MANAGING BOARD FOR FISCAL 
The Supervisory Board engaged an independent outside com-
pensation consultant to review the appropriateness and level
of the Managing Board’s compensation for fiscal . The in-
dependent compensation consultant confirmed that the remu-
neration of the Managing Board on the basis of the target at-
tainment for fiscal  was appropriate. Taking this expert
review into account and after reviewing the achievement of
the targets set at the beginning of the fiscal year, the Supervi-
sory Board decided at its meeting of November , , based
on the remuneration system in effect for fiscal , to set the
variable cash compensation component, the Stock Awards to
be granted, and the pension benefit contributions as follows: