Siemens 2010 Annual Report Download - page 103

147 Consolidated Financial Statements 49 Combined management’s discussion and analysis 261 Additional information
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The values measured for target attainment were adjusted for
non-recurring factors pursuant to the rules determined by the
Supervisory Board at the beginning of the fiscal year. Accord-
ingly, the actual values were adjusted for changes in the port-
folio, impairment of non-current assets, and certain restructur-
ing expenses, if any individual factor in these areas would have
affected target attainment by more than % of the relevant
target parameter.
The Supervisory Board also decided, exercising its duty-bound
discretion (pflichtgemäßes Ermessen), to increase the bonus
payout amounts resulting from the target attainment by %,
resulting in target attainment of % for the determination of
the payout amounts. In its decision, the Supervisory Board
took account of the achievement of targets relevant to the
Compliance Program and the growth of the Company’s Envi-
ronmental Portfolio. Furthermore, the Supervisory Board took
into account the performance of Siemens’ business volume
and profitability in fiscal  in comparison to its competitors
General Electric, Philips, ABB and Alstom.
Long-term stock-based compensation. For fiscal , the
Supervisory Board determined that the decision on the grant
of Stock Awards would take account of the average earnings
per share (basic EPS) from continuing operations for the past
three fiscal years ( – ). The earnings for fiscal 
resulted in an average EPS of €. (continuing operations) for
fiscal  – , yielding a target attainment of %. The
Stock Awards were recorded at the closing price of Siemens
stock in Xetra trading on the date of commitment less the pres-
ent value of dividends expected during the vesting period,
because Stock Award holders are not entitled to receive divi-
dends. The resulting value amounted to €. (: €.).
Total compensation. The decisions by the Supervisory Board
described above yield total compensation of €. million for
the Managing Board for fiscal  (: €. million), an
increase of %. Of this amount, €. million (: €.
million) was attributable to the cash compensation component
and €. million (: €. million) to stock-based compen-
sation.
Weight % of target Actual 
figure
Target attainment
Target parameter
ROCE 30% 10.30% 14.88% 201.78%
Free cash flow (FCF) 40% € 2,205 million € 7,863 million 250.00%
Revenue growth (organic) 30% (3.00)% (2.51)% 106.81%
Total target attainment 100% – – 192.58%
1 The values measured for target attainment for ROCE and Free cash flow were adjusted for certain non-recurring factors.
As a consequence, the following targets were set and attained
with respect to the variable cash compensation component: