Against the backdrop of the German Appropriateness of Management Board Remuneration Act, which came into effect on August 5, 2009, the Supervisory Boardof Daimler AG commissioned the firm of accountants Ernst & Young to carry out an independent appraisal of the system of Board of Management remuneration.
As a result, the remuneration system has been confirmed as complying with this year’s new legislation.
Compared with similar companies, the system of Board of Management remuneration at Daimler features a very high variable component, subjecting the Board of Management to a higher degree of risk. The system also features a very long-term orientation.
“The result shows that by emphasizing the long-term elements of remuneration and the Board of Management members’ obligation to hold Daimler shares and thus to invest a part of their private assets in the company, we already focused our remuneration system on sustainability at an early stage,” stated Dr. Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG.
The Supervisory Board has therefore confirmed the system of remuneration for the Board of Management of Daimler AG for the year 2010 and intends to present the issue to be voted on at the Annual Shareholders’ Meeting in April 2010.
Dr. Manfred Bischoff: “But like in the past, we will continue to monitor developments in the German market, in particular at the 30 DAX companies and at our international competitors, and if necessary we will review the focus of remuneration once again next year.”
Source: Daimler AG