Mercedes 2015 Annual Report Download - page 228

E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 235
Determination of the number of phantom shares that vest
of the existing PPSP 2012 to 2013 is based on return on
net assets derived from internal targets and return on sales
compared with benchmarks oriented towards competitors.
The number of phantom shares that vest of the PPSPs granted
in 2014 and 2015 will be based on the relative share performance,
which measures the development of the price of a share price
index based on a competitor group including Daimler, and the
return on sales (RoS) compared with benchmarks oriented
towards competitors. Special rules apply for the members of
the Board of Management: Daimler’s RoS must be not equal
to but higher than that of the competitors in order to achieve
the same target achievement as the other plan participants.
For the PPSP granted in 2015, an additional limit on target
achievement was agreed upon for the reference parameter RoS
for the members of the Board of Management. In the case
of target achievement between 195% and 200%, an additional
comparison is made on the basis of the RoS achieved in
absolute terms. If the actual RoS for the automotive business
is below the strategic target (currently 9%) in the third year
of the performance period, target achievement is limited to 195%.
The Group recognizes a provision for awarding the PPSP in
the consolidated statement of financial position. Since payment
per vested phantom share depends on the quoted price of
Daimler’s ordinary shares, that quoted price essentially repre-
sents the fair value of each phantom share. The proportionate
remuneration expenses from the PPSP recognized in the individ-
ual years are determined on the price of Daimler ordinary
shares and the estimated target achievement.
Performance Phantom Share Plans
In 2015, the Group adopted a Performance Phantom Share
Plan (PPSP), similar to those used from 2005 to 2014, under
which eligible employees are granted phantom shares entitling
them to receive cash payments after four years. During the
four-year period between the allocation of the preliminary phan-
tom shares and the payout of the plan at the end of the term,
the phantom shares earn a dividend equivalent in the amount
of the actual dividend paid on ordinary Daimler shares. The
amount of cash paid to eligible employees at the end of the
holding period is based on the number of vested phantom
shares (determined over a three-year performance period)
multiplied by the quoted price of Daimler’s ordinary shares
(calculated as an average price over a specified period at the
end of the four–year plan period). The vesting period is therefore
four years. For the plans granted as of 2009, the quoted price
of Daimler’s ordinary shares to be used for the payout is limited
to 2.5 times the Daimler share price at the date of grant. For
the plans granted as of the beginning of 2012, the payout for
the members of the Board of Management is also limited to
2.5 times the allotment value used to determine the preliminary
number of phantom shares. The limitation of the payout for
the members of the Board of Management also includes the
dividend equivalents paid out after January 1, 2014.
Expenses in the consolidated statement of income resulting from
share-based payments of current members of the Board of Management
Dr. Dieter Zetsche Dr. Wolfgang Bernhard Dr. Christine Hohmann-Dennhardt1
2015 2014 2015 2014 2015 2014
In millions of euros
PPSP -6.0 -6.1 -2.4 -2.5 -2.4 -2.3
Medium-term component of the annual bonus -2.3 -1.8 -0.9 -0.7 -0.9 -0.7
Ola Källenius2Wilfried Porth Andreas Renschler3
2015 2014 2015 2014 2015 2014
In millions of euros
PPSP -0.6 –-2.4 -2.5 –-0.2
Medium-term component of the annual bonus -0.9 –-0.9 -0.7 –-0.1
E.46
Hubertus Troska Bodo Uebber Prof. Dr. Thomas Weber
2015 2014 2015 2014 2015 2014
In millions of euros
PPSP -1.9 -1.6 -2.9 -2.9 -2.5 -2.6
Medium-term component of the annual bonus -0.9 -0.7 -1.1 -0.8 -0.9 -0.7
1 Appointment to the Board of Management ends on December 31, 2015.
2 Appointed to the Board of Management as of January 1, 2015.
3 Stepped down from the Board of Management as of January 28, 2014. Amounts are included pro rata for 2014.