Compensation of the Members
of the Board of Management
The Supervisory Board's Executive Committee, which is responsible for adjusting the fixed and variable compensation components, made no general adjustments to the amount of compensation, although it did make an individual adjustment to the salary of Dr. Teyssen on his appointment as Vice Chairman of the Board of Management effective March 1, 2008. In the case of Mr. Dänzer-Vanotti, Mr. Feldmann, and Dr. Schenck, the compensation level of 80 percent of the compensation of a regular Board of Management member ended effective January 1, 2008.
The total compensation of the members of the Board of Management in the 2008 financial year amounted to EUR18.9 million (2007: EUR20.4 million). Individual members of the Board of Management were paid the following total compensation:
The total compensation of the members of the Board of Management in the 2008 financial year amounted to EUR18.9 million (2007: EUR20.4 million). Individual members of the Board of Management were paid the following total compensation:
The remaining other compensation of the members of the Board of Management consists primarily of benefits in kind from the personal use of company cars and, in the case of one member, temporary reimbursement for rental payments on a secondary residence and for the fees of a real-estate broker.
The performance rights granted in 2008 as the third tranche of the E.ON Share Performance Plan were quoted at their fair value of EUR122.69 per right on the date of their issuance and were included in Board of Management members' total compensation. This fair value is determined by means of a recognized option-pricing model (a Monte Carlo simulation based on a two-dimensional Black-Scholes model).
For purposes of internal communications between the Board of Management and the Supervisory Board, the target value is used instead of the fair value. The target value is equal to the cash payout amount of each performance right if at the end of the maturity period E.ON stock maintains its price and its performance equals the performance of the benchmark index. In 2008, the target value of the rights issued was EUR1.35 million for the Chairman of Board of Management, EUR1.03 million for the Vice Chairman of Board of Management, and EUR0.8 million for regular Board of Management members.
The German Commercial Code (Section 314, Paragraph 1, Item 6a, Sentence 9) requires supplemental disclosure, by year, of the Company's expenses for all tranches granted in 2008 and in previous years and for tranches existing in 2008. The following income in accordance with IFRS 2, Share-Based Payment, was recorded for the 2008 financial year: Dr. Bernotat EUR1.3 million, Dr. Bergmann EUR0.1 million. For the same period, expenses were recorded for Dr. Teyssen EUR0.1 million, Mr. Dänzer-Vanotti EUR0.1 million, Mr. Feldmann EUR0.2 million, and Dr. Schenck EUR0.2 million.
Additional detailed information about E.ON AG’s stock-based compensation program can be found in Note 11 of the Consolidated Financial Statements.
No loans were outstanding or granted to members of the Board of Management in 2008 financial year.
Page 163 of the 2008 Financial Report (Annual Report Part II/II). contains additional information about the members of the Board of Management.
Payments Made to Former Members of the Board of Management
Total payments made to former Board of Management members and to their beneficiaries amounted to EUR7.6 million in 2008 (2007: EUR6.6 million). Provisions of EUR110.4 million (2007: EUR97.4 million) have been provided for pension obligations to former Board of Management members and their beneficiaries.
The performance rights granted in 2008 as the third tranche of the E.ON Share Performance Plan were quoted at their fair value of EUR122.69 per right on the date of their issuance and were included in Board of Management members' total compensation. This fair value is determined by means of a recognized option-pricing model (a Monte Carlo simulation based on a two-dimensional Black-Scholes model).
For purposes of internal communications between the Board of Management and the Supervisory Board, the target value is used instead of the fair value. The target value is equal to the cash payout amount of each performance right if at the end of the maturity period E.ON stock maintains its price and its performance equals the performance of the benchmark index. In 2008, the target value of the rights issued was EUR1.35 million for the Chairman of Board of Management, EUR1.03 million for the Vice Chairman of Board of Management, and EUR0.8 million for regular Board of Management members.
The German Commercial Code (Section 314, Paragraph 1, Item 6a, Sentence 9) requires supplemental disclosure, by year, of the Company's expenses for all tranches granted in 2008 and in previous years and for tranches existing in 2008. The following income in accordance with IFRS 2, Share-Based Payment, was recorded for the 2008 financial year: Dr. Bernotat EUR1.3 million, Dr. Bergmann EUR0.1 million. For the same period, expenses were recorded for Dr. Teyssen EUR0.1 million, Mr. Dänzer-Vanotti EUR0.1 million, Mr. Feldmann EUR0.2 million, and Dr. Schenck EUR0.2 million.
Additional detailed information about E.ON AG’s stock-based compensation program can be found in Note 11 of the Consolidated Financial Statements.
No loans were outstanding or granted to members of the Board of Management in 2008 financial year.
Page 163 of the 2008 Financial Report (Annual Report Part II/II). contains additional information about the members of the Board of Management.
Payments Made to Former Members of the Board of Management
Total payments made to former Board of Management members and to their beneficiaries amounted to EUR7.6 million in 2008 (2007: EUR6.6 million). Provisions of EUR110.4 million (2007: EUR97.4 million) have been provided for pension obligations to former Board of Management members and their beneficiaries.
