OUTSTANDING STOCK OPTIONS EXERCISED IN FULL IN 2007
In 2007, current members of our Executive Board held a total of 2,800 options within the scope of the Management Share Option Plan (MSOP). All options were exercised. Compensation resulting from the exercise of these options totaled € 514,840. As of December 31, 2007, our Executive Board members no longer hold any stock options which could still be exercised.
Commitments to Executive Board Members upon End of Tenure
Individual agreements have been concluded with our Executive Board members for severance payment provisions in case of non-continuation of their employment agreements. With one Executive Board member, compensation for a post-contractual competition prohibition has also been agreed.
Employment contracts with our Executive Board members contain individual provisions governing severance payments. These amount to 100 %2) of the annual fixed salary as a one-time payment in the event that adidas AG decides not to renew the respective contract although the Executive Board member would be willing to continue his function as Executive Board member under the existing conditions. If an Executive Board member dies during his term of office, his spouse will receive a one-time payment amounting to 25 % of his annual fixed salary.
A post-contractual competition prohibition period of six months has been agreed upon with Executive Board member Glenn Bennett. adidas AG will pay compensation of 100 % of the annual fixed salary for this period unless adidas AG decides not to insist upon enforcing this prohibition.
PENSION COMMITMENTS GRANTED
When members of our Executive Board reach the individually agreed retirement age of 65 years and resign from their Executive Board position, they are entitled to receive a retirement pension. In addition, each is entitled to receive a disability pension should he become incapacitated before reaching retirement age. Further, when an Executive Board member dies, a widow’s pension will be paid.
Retirement pension: The pension allowance is calculated as a percentage of the pensionable income, which currently equals the annual fixed salary. Starting from a base amount totaling 10 % of the pensionable income, the pension entitlement increases by 2 % for each full year of tenure as an Executive Board member of adidas AG3) and can reach a maximum level of 40 % of pensionable income. In the event of the retirement of an Executive Board member prior to reaching the statutory retirement age, the non-forfeiture of the pension entitlement will be in line with the legal provisions. The increase of current pension payments or pension entitlements is index-linked in accordance with German law.
Disability pension: The disability pension amounts to 100 % of pension entitlements.
Widow’s pension: When an Executive Board member dies, his surviving spouse receives an annuity amounting to 50 % of his
PAYMENTS TO PENSION FUND / PENSION TRUST FUND
€ in thousands
|Herbert Hainer (Chairman and CEO)||240||4,490|
|Robin J. Stalker||120||848|
1) This contains a one-time payment into the pension fund for all future pension entitlements which arose through December 31, 2006.
COSTS FOR ACCRUED PENSION ENTITLEMENTS1)
€ in thousands
|Herbert Hainer (Chairman and CEO)||215||238|
|Robin J. Stalker||161||161|
1) This also includes service costs which have arisen with regard to the provisions for pension obligations
in the Consolidated Income Statement.