- Intro
- To our Shareholders
- Group Management Report - Our Group
- Group Management Report - Financial Review
- Consolidated Financial Statements
- Responsibility Statement
- Auditor’s Report
- Consolidated Statement of Financial Position
- Consolidated Income Statement
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
- Notes
- 01 General
- 02 Summary of significant accounting policies
- 03 Acquisition/disposal of subsidiaries as well as assets and liabilities
- 04 Cash and cash equivalents
- 05 Short-term financial assets
- 06 Accounts receivable
- 07 Other current financial assets
- 08 Inventories
- 09 Other current assets
- 10 Assets/liabilities classified as held for sale
- 11 Property, plant and equipment
- 12 Goodwill
- 13 Trademarks and other intangible assets
- 14 Long-term financial assets
- 15 Other non-current financial assets
- 16 Other non-current assets
- 17 Borrowings and credit lines
- 18 Other current financial liabilities
- 19 Other provisions
- 20 Accrued liabilities
- 21 Other current liabilities
- 22 Other non-current financial liabilities
- 23 Pensions and similar obligations
- 24 Other non-current liabilities
- 25 Shareholders’ equity
- 26 Non-controlling interests
- 27 Leasing and service arrangements
- 28 Financial instruments
- 29 Other operating income
- 30 Other operating expenses
- 31 Cost by nature
- 32 Financial income/financial expenses
- 33 Income taxes
- 34 Earnings per share
- 35 Segmental information
- 36 Additional cash flow information
- 37 Commitments and contingencies
- 38 Equity compensation benefits
- 39 Related party disclosures
- 40 Other information
- 41 Information relating to the German Corporate Governance Code
- 42 Events after the balance sheet date
- Statement of Movements of Intangible and Tangible Assets
- Shareholdings
- Kampagne
- Additional Information
- Fit for the Future
Page 3 of 4
Commitments to Executive Board members upon premature end of tenure
In the service contracts of the Executive Board members Glenn Bennett, Robin J. Stalker and Erich Stamminger, a severance payment cap in the case of premature termination of tenure which is not due to good cause is not provided for due to the relatively short contractual terms of up to three years. The service contract of Herbert Hainer, on the other hand, which has a contractual term of more than three years, does provide for a severance payment relating to payment claims for the remaining period of his service contract. However, the severance payment has been limited to a maximum of twice the overall annual compensation (Severance Payment Cap). In this respect, the overall annual compensation means the overall compensation for the last full financial year prior to his resignation from the Executive Board while considering the expected total compensation for the current financial year. If the service contract is terminated due to a change of control, a possible severance payment is limited to 150% of the Severance Payment Cap.
Commitments to Executive Board members upon regular end of tenure
In case of regular termination of the service contract, i.e. in case of non-renewal of the service contract or termination due to reaching the retirement age, the respective Executive Board member is entitled to a follow-up bonus as individually agreed. This bonus amounts to 75% for Glenn Bennett, 100% for Robin J. Stalker and 125% for Herbert Hainer and is based on the Performance Bonus granted to the respective Executive Board member for the last full financial year. The follow-up bonus is payable in two tranches, 12 and 24 months following the end of the contract.
Instead of the follow-up bonus, the service contract with Erich Stamminger contains a severance payment of 100% of the last annual fixed salary in the event that adidas AG decides not to renew his contract although he would be willing to continue his function as Executive Board member under the existing conditions. In this case, the amount is based on the annual fixed salary of the financial year at the time of retirement from office. The severance payment is granted instead of the follow-up bonus. The Supervisory Board has aligned this contractual provision to the system valid for the other Executive Board members as of the 2011 financial year and set a follow-up bonus in the amount of 125%.
Other benefits and additional commitments to the Executive Board
- Except for the other benefits listed in the table, the Executive Board members did not receive any additional payments.
- The Executive Board members did not receive any additional compensation for mandates within the adidas Group.
- The Executive Board members did not receive any loans or advance payments from adidas AG.
- The company maintains a consequential loss and liability insurance for Board members of the adidas Group (D&O Insurance). It covers the personal liability in the event of claims raised against Executive Board members for indemnification of losses incurred in connection with their acts and omissions. For cases of damage occurring after July 1, 2010, there is a deductible in accordance with the statutory provisions and recommendations of the German Corporate Governance Code. This deductible amounts to 10% of the damage up to a maximum of one and a half times the fixed annual salary for all cases of damage within one financial year.
Payments to former members of the Executive Board and their surviving dependants
In the 2010 financial year, pension payments to former Executive Board members or to their surviving dependants amounted to € 3.235 million (2009: € 2.607 million). As at December 31, 2010, the provisions for pension entitlements of this group of persons totalled € 45.884 million (2009: € 45.658 million). The dynamisation of the pension payments is made in accordance with statutory regulations or regulations under collective agreements unless a surplus from the pension fund is used after the commencement of retirement for an increase in retirement benefits.
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