Siemens 2011 Annual Report Download - page 140

6 A. To our shareholders 23 B. Corporate Governance
25 B. Corporate Governance report
31 B. Corporate Governance statement pursuant to
Section a of the German Commercial Code
(HGB) (part of the combined management’s
discussion and analysis)
33 B. Compliance report
36 B. Compensation report
(part of Notes to
Consolidated Financial Statements)

B... 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 re-
muneration of the Managing Board – on the basis of the tar-
get attainment for fiscal  – was appropriate. Taking this
expert review into account, and after reviewing the achieve-
ment of the targets set at the beginning of the fiscal year, the
Supervisory Board decided at its meeting on November ,
, to set the variable compensation component, the Stock
Awards to be granted, and the pension benefit contributions
as follows:
Variable compensation component (bonus)
In setting the targets for the variable compensation (bonus)
at the beginning of fiscal , the Supervisory Board took in-
to account that the Company ’s One Siemens target system
focuses on a sustainable appreciation of value:
> When weighting the target parameters, the focus was on
sustainable growth, whereby particular importance was
attributed to the target parameter organic revenue growth.
> The ROCE target defined by the Supervisory Board is based
on the prior-year figure for “ROCE adjusted” and takes into
account special effects from impairments in fiscal .
> The target for free cash flow takes into account that the
additional investments that the Company must make in
fiscal  could burden free cash flow compared to the
prior year.
As a consequence, the following targets were set and attained
with respect to the variable compensation component:
Target parameter Weight % of target Actual  figure Target attainment
Revenue growth (organic)  50% 1% 7% 200.00%
ROCE adjusted  25% 16.1% 24.0% 200.00%
Free cash flow (FCF)  25% €3,200 million €5,885 million 189.50%
Total target attainment 100% – – 197.38%
1 Continuing operations