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
pension entitlements.
PAYMENTS TO PENSION FUND / PENSION TRUST FUND
€ in thousands
| 2007 |
20061) |
|
| Herbert Hainer (Chairman and CEO) | 240 | 4,490 |
| Glenn Bennett | 82 | 925 |
| Robin J. Stalker | 120 | 848 |
| Erich Stamminger | 103 | 2,412 |
| Total | 545 | 8,675 |
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
| 2007 |
2006 |
|
| Herbert Hainer (Chairman and CEO) | 215 | 238 |
| Glenn Bennett | 68 | 70 |
| Robin J. Stalker | 161 | 161 |
| Erich Stamminger | 96 | 108 |
| Total | 540 | 577 |
1) This also includes service costs which have arisen with regard to the provisions for pension obligations
in the Consolidated Income Statement.
