The remuneration of the members of the Board of Management who left in 2008 breaks down as follows:
Dr Wolfgang Klein left the Board of Management of Deutsche Post AG effective 10 November 2008. As in previous years, he only received remuneration in financial year 2008 from Deutsche Postbank AG. His total remuneration breaks down as follows: basic salary of €751,042; fringe benefits in the amount of €24,833 and variable remuneration (one-time special payments) of €2,400,000, which was offered and paid by Postbank. The share attributable to financial year 2007 was €150,000. Dr Wolfgang Klein’s total proportionate remuneration for financial year 2008 was €3,175,875. Dr Wolfgang Klein did not receive any stock appreciation rights.
Dr Klaus Zumwinkel left the Board of Management of Deutsche Post AG effective 18 February 2008. His total remuneration breaks down as follows: basic salary of €207,265, fringe benefits in the amount of €26,596 and variable remuneration of €480,184 (€272,920 of this is attributable to a bonus share for financial year 2007 that was paid in 2008). Dr Klaus Zumwinkel’s total proportionate remuneration for financial year 2008 was €714,045.
Share-based remuneration
In 2006, the Executive Committee of the Supervisory Board adopted the Long-Term Incentive Plan 2006 (LTIP 2006), which was based closely on the lapsed stock option plan 2003 (SOP 2003). On 1 July 2006, the members of the Board of Management were for the first time awarded SAR under this plan instead of the stock options granted in previous years.
Each SAR entitles the holder to receive a cash settlement equal to the difference between the issue price of the SAR and the average closing price of the Deutsche Post shares for the last five trading days before the exercise date. As in the past, the members of the Board of Management must each invest 10% of their annual target salary in Deutsche Post shares per tranche. The number of SAR to be issued to the members of the Board of Management is determined by the Supervisory Board or its Executive Committee as each tranche is issued. The other essential features of the previous stock option plan have been retained. Following a three-year lock-up period that begins on the date of issue, the SAR, like the stock options, may be exercised in full or in part within a period of two years provided an absolute or relative performance target has been achieved at the end of the lock-up period. Any SAR not exercised during this two-year period expire.
To determine how many – if any – of the SAR granted may be exercised, the average share price or the average index level is compared for the reference period and for the performance period. The reference period, as in the past, comprises the twenty consecutive trading days prior to the issue date. The performance period is the last sixty trading days before the end of the lock-up period. The average share price ( closing price) is calculated as the average of the closing rates of Deutsche Post shares in Deutsche Börse AG’s Xetra electronic trading system.
As in the past, the absolute performance target is achieved if the closing price of Deutsche Post shares exceeds the issue price by at least 10%, 15%, 20% or 25%. The relative performance target is tied to the performance of the shares in relation to the performance of the Dow Jones STOXX 600 Index (SXXP; ISIN EU0009658202). The target is met if the share price is not outperformed by the index during the performance period or if it outperforms the index by at least 10%.
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