The annual remuneration of the members of the Board of Management consists of a performance-related component, a performance-related bonus and a long-term performance-related component.
Performance-related components comprise the fixed component plus additional compensation, which encompasses primarily the use of company cars, the reimbursement of travel costs and telephone costs, and special allowances and benefits received when working outside Germany.
The bonus is determined by the Supervisory Board on the basis of the company’s business development after due assessment of the circumstances. The Supervisory Board still has the right to agree an appropriate special bonus for exceptional performance.
The long-term performance-related remuneration consists of options under the stock option plans as resolved by the AGM. These are outlined in the “stock option plan” section.
In fiscal year 2005, the remuneration paid to active members of the Board of Management amounted to €14.8 million (previous year: €12.8 million). Of this amount, €7.7 million derived from performance-related components (€7.1 million for the fixed component, €0.6 million for additional compensation), and €7.0 million from bonuses. The value attributable to fiscal year 2005 of the stock options granted to members of the Board of Management under the 2000 and 2003 stock option plans totaled €3.2 million (previous year: €3.1 million).
The remuneration was broken down as shown in the following table:
| Remuneration of Board of Management in the Group in 2005 |  |
|||
|---|---|---|---|---|
| € | Fixed component | Bonus | Total | Value of the stock options granted attributable to 2005 |
| Dr. Klaus Zumwinkel, Chairman | 1,360,144 | 1,337,021 | 2,697,165 | 642,223 |
| Dr. Frank Appel | 715,000 | 702,845 | 1,417,845 | 329,499 |
| John Mullen | 860,000 | 845,380 | 1,705,380 | 129,424 |
| Prof. Dr. Edgar Ernst | 863,583 | 848,902 | 1,712,485 | 428,142 |
| Dr. Peter Kruse | 860,000 | 845,380 | 1,705,380 | 428,142 |
| Dr. Hans-Dieter Petram | 906,763 | 891,348 | 1,798,111 | 428,142 |
| Walter Scheurle | 715,000 | 702,845 | 1,417,845 | 428,142 |
| Prof. Dr. Wulf von Schimmelmann | 860,000 | 853,120 | 1,713,120 | 428,142 |
| Total | 7,140,490 | 7,026,841 | 14,167,331 | 3,241,856 |
| The remuneration disclosed covers all activities of the members of the Board of Management in the Group. |
In addition, 829,362 stock options were granted to members of the Board of Management in 2005. The remuneration of former members of the Board of Management or their surviving dependants amounted to €8.6 million (previous year: €1.1 million). Provisions for current pensions totaled €12.8 million. No credit or similar benefits were extended to members of the Board of Management. In the year under review, the members of the Board of Management received no benefits from third parties that were either promised or granted in view of their position as a member of the Board of Management.