Siemens 2011 Annual Report Download - page 141

51 C. Combined management’s discussion and analysis 273 E. Additional information 153 D. Consolidated Financial Statements
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The values set for target attainment were not adjusted.
The Supervisory Board also decided, exercising its duty-bound
discretion (pflichtgemäßes Ermessen), not to adjust the bo-
nus payout amounts resulting from target attainment.
Long-term stock-based compensation
Half of the annual target amount of the Stock Awards is linked
to the average earnings per share (basic EPS undiluted) for
the past three fiscal years. The earnings for fiscal  result-
ed in an average (basic) EPS of €. for fiscal  to ,
yielding a target attainment of %.
For the other half of the annual target amount for the Stock
Awards, the Supervisory Board approved a number of Stock
Awards equivalent to the fair value of half the target amount
on the award date. The amount by which these stock commit-
ments must be adjusted – or an additional cash payment must
be made – after the end of the restriction period will depend
on the performance of Siemens stock compared to the stock
of five competitors (ABB, General Electric, Philips, Rockwell,
Schneider) over the coming four years, and will therefore not
be determined until after the end of fiscal .
All stock awards were recorded at the closing price of Siemens
stock in Xetra trading on the date of commitment less the
present value of dividends expected during the restriction
period, because Stock Award holders are not entitled to re-
ceive dividends. The resulting figure amounted to €. (pri-
or year: €.).
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 .%,
which is predominantly due to the increased number of Man-
aging Board members. Of this total amount, €. million
(: €. million) was attributable to the cash compensa-
tion components and €. million (: €. million) to
stock-based compensation. Thus, more than half of the com-
pensation was paid in the form of stock-based instruments
with waiting or restriction periods of four years, and therefore
on a deferred basis.