Siemens 2015 Annual Report Download - page 44

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Combined Management Report

Stock commitments that were made as long-term stock-based
compensation and for which the restriction period is still in
effect will be forfeited without replacement if the employment
agreement is not extended after the end of an appointment
period, either at the Managing Board member’s request or
because there is serious cause that would have entitled the
Company to revoke the appointment or terminate the contract.
However, once granted, Stock Awards are not forfeited if the
employment agreement is terminated by mutual agreement at
the Company’s request, or because of retirement, disability or
death or in connection with a spinoff, the transfer of an opera-
tion or a change of activity within the corporate group. In these
cases, the Stock Awards will remain in effect upon termination
of the employment agreement and will be honored on expira-
tion of the restriction period.
A.10.1.2 REMUNERATION OF MANAGING BOARD
MEMBERS FOR FISCAL 2015
At the beginning of the fiscal year, the Supervisory Board set
the target parameters return on capital employed (ROCE) and
earnings per share (EPS), in each case on the basis of continu-
ing and discontinued operations. The target values for the EPS
component were defined on a multi-year basis. In defining the
target for variable compensation, the Supervisory Board also
defined individual targets for all members of the Managing
Board so as to take fuller account of their individual perfor-
mance. As a rule, up to five individual targets were defined for
this purpose. These targets take account of business- related
targets such as market coverage and business per formance as
well as targets such as customer and employee satisfaction, in-
novation and sustainability. An internal review of the appropri-
ateness of Managing Board compensation for fiscal  has
confirmed that the remuneration of the Managing Board result-
ing from target achievement for fiscal  is to be considered
appropriate. In light of this review and following a review of the
achievement of the targets defined at the beginning of the fis-
cal year, the Supervisory Board has decided to define the
amounts of variable compensation, stock commitments and
pension benefit contributions as follows:
Variable compensation (Bonus)
The following targets were set and attained with respect to the
two target parameters ROCE and EPS for variable compensation:
Target parameter % of target Actual FY  figure Target achievement
Return on capital employed, ROCE 15.96% 19.63% 128.00%
Earnings per share, basic EPS ( ø 2013–2015) €5.40 €6.76 190.67%
1 Continuing and discontinued operations.
2 Calculative target achievement ROCE was 200% (cap). The Supervisory Board adjusted this target achievement due to the sale of the hearing aid business (Audiology).
The achievement of individual targets was also taken into
account when determining overall target achievement. In its
overall assessment, the Supervisory Board decided not to make
any discretionary adjustments to the Bonus payout amounts. In
fiscal , Bonus-related target achievement by Managing
Board members was between . % and . %.