Siemens 2012 Annual Report Download - page 198

1 A. To our Shareholders
21 B. Corporate Governance 49 C. Combined Management Report
50 C. Business and economic environment
64 C. Financial performance measures
69 C. Results of operations
82 C. Financial position
93 C. Net assets position
95 C. Overall assessment of the economic position
96 C. Subsequent events
97 C. Sustainability
111 C. Report on expected developments and
associated material opportunities and risks

Diversity Scorecard – To measure our progress in the area of
diversity, we have a scorecard based on five parameters, which
we track yearly and compare to prior years: These five parame-
ters include professional knowledge, diversity at all levels,
composition of our top talent pool, culture and branding, and
experience mix.
Diversity in management – We’ve developed our manage-
ment recruitment processes to ensure that the preliminary se-
lection of candidates reflects the diversity of our customers
and employees at all levels and in all regions. For example the
percentage of women in management at Siemens globally has
today nearly doubled since fiscal  to .%.
Work-life integration – A growing number of employees seek
more flexibility in how they balance work with the rest of their
lives, for example, childcare responsibilities. At many of our lo-
cations worldwide, we now provide options for flexible work
schedules, part-time work and telecommuting. At the same
time, particularly in Germany, we are expanding the availabili-
ty of childcare options near the Company, such as nurseries,
daycare centers and children’s after-school centers – taking lo-
cal conditions into account.
...    
We aim to further develop the qualification and expertise of
our employees at all locations. In fiscal , we invested
around € million for continuing education (without travel
expenses), which equals about € per employee. These ex-
penses include training courses and programs both for individ-
ual employees and for entire organizational units or categories
of employees. For example, we prepare our next-generation
managers for their future responsibilities through the Siemens
Leadership Excellence Program. So-called Siemens Core Learn-
ing Programs impart skills and capabilities specific to the re-
quirements of particular job categories at Siemens and are an
important lever for the systematic development of our employ-
ees worldwide. Functional training measures address the de-
velopment of specific skills within particular business func-
tions. Cross-functional training improves skills and capabilities
that are relevant across multiple job categories or business
functions.
Siemens continues to be one of Germany ’s largest providers of
professional education for secondary school graduates (.
places for Siemens trainees and . places for trainees from
other companies). As in previous years, we again made 
trainee positions available to disadvantaged youths. In addi-
tion, we offer for the first time a professional education ac-
cording to the German system to  school graduates coming
from  European countries.
... 
   
To ensure high performance at all levels, our compensation
system for our top executives and senior management world-
wide includes a variable component that depends on three tar-
get categories: Unit Performance (against internal financial
targets as well as further strategic unit targets, such as perfor-
mance against competition), Individual Performance and
Siemens Performance.
...    
Siemens established its first employee share program in Ger-
many as early as , following the Company ’s reorganization
as a stock exchange-listed corporation. The aim was to enable
as many employees as possible to participate in Siemens’ long-
term future development. Over the years, thousands of em-
ployees in Germany have acquired Siemens shares with the
Company ’s financial support. Building on this success in Ger-
many, Siemens’ Managing Board decided in  to extend
employee and management participation. In the same year,
the first wave of the new global Share Matching Plan was
rolled out in seven countries. Today, Siemens offers approxi-
mately % of its employees in  countries the opportunity to
participate in the plan. The Share Matching Plan is based on a
simple principle: Employees participating in the plan will re-
ceive one Siemens share without payment of consideration
(matching share) for every three Siemens shares bought and
continuously held over a period of three years. Only condition:
The employee still needs to be employed by Siemens. Clear
purpose of the plan has always been to make stock ownership
available to employees at all income levels.
We are convinced that empowering employees with shares moti-
vates them to assume greater responsibilities and helps them
identify more closely with the company they work for – a funda-
mental prerequisite for the sustainable development of Siemens.
In , the Global Equity Organization (GEO), the largest inter-
national organization concerned with share plans and equity-
based compensation, presented Siemens AG with the Judges
Award – for overall excellence with regard to global benefit
schemes. Siemens AG was commended by the GEO jury for its
strategy of establishing a truly global equity culture within the
Company, taking all employees worldwide into consideration.
...    
  
We aim to respect and uphold the fundamental rights of our
employees. Underscoring this commitment, Siemens, the
Siemens Central Works Council, the German trade union IG
Metall and the global industrial union IndustriAll have signed
an international framework agreement on the principles of
corporate responsibility. The agreement reaffirms Siemens’