Short-term compensation components

The total cash compensation consists of a non-performance-based, fixed component and a variable, performance-related component. If the degree to which targets have been achieved is 100 %, the total cash compensation breaks down into roughly 40 % for the fixed component and 60 % for the variable component. The variable component consists of a company bonus, accounting for 70 %, and an individual bonus, accounting for 30 %. The company bonus is based on the Group’s value added. If the figures budgeted for the fiscal year in question are achieved, the degree to which the target has been achieved is 100 %. The degree to which the target has been achieved as regards the company bonus can amount to between 50 % and 150 %. The personal bonus depends on the degree to which the goals agreed between the Chairman of the Supervisory Board and each Executive Board member at the beginning of the financial year have been achieved. The maximum degree to which this target can be achieved is 120 %.

Above and beyond this, Executive Board members receive non-cash compensation and other compensation, consisting primarily of sums reflecting the use of company cars according to German fiscal guidelines and accident insurance premiums.

Compensation also includes payment for exercising Supervisory Board mandates held by Executive Board members at affiliates. This income is added to the variable compensation.

The short-term compensation components paid to members of the Executive Board for fiscal 2008 are as follows:

Instead of a pension commitment, the Chairman, Dr. Jürgen Großmann receives an annual €2,000,000, which was paid for the first time in 2008.

The short-term compensation components include a total of €317,000 which was paid for the exercise of management board mandates at subsidiaries. These sums were paid by the respective subsidiaries.