Annual Report 2016

Board of Management remuneration in the financial year 2016

Board of Management remuneration in 2016 pursuant to Section 314 Subsection 1 No. 6 of the German Commercial Code (HGB)

The total remuneration granted by Group companies (excluding retirement benefit commitments) to the members of the Board of Management of Daimler AG is calculated as the total of the amounts of

  • the base salary in 2016,
  • the half of the annual bonus for 2016 payable in 2017 and measured as of the end of the reporting period,
  • the half of the medium-term share-based component of the annual bonus for 2016 payable in 2018 with its value at the end of the reporting period (entitlement depending on the development of Daimler’s share price compared with the Dow Jones STOXX Auto Index),
  • the value of the long-term share-based remuneration (PPSP) at the time when granted in 2016, and
  • the taxable non-cash benefits in 2016.

For both of the share-based components — the second 50 % of the annual bonus and the PPSP with a long-term orientation — the amounts actually paid out can deviate significantly from the values described depending on the development of the Daimler share price and on the achievement of the relevant target parameters. Upward deviation is possible only as far as the maximum limits described above. Both components can also be zero.

The remuneration of the Board of Management for the financial year 2016 amounts to €31.8 million (2015: €38.8 million). Of that total, €10.0 million was fixed, that is, non-performance-related remuneration (2015: €9.1 million), €11.6 million (2015: €17.4 million) was short-term and medium-term variable performance-related remuneration (annual bonus with deferral), and €10.2 million was variable performance-related remuneration granted in the financial year 2016 with a long-term incentive effect (2015: €12.3 million). (See table B.52)

B.52 Board of Management remuneration in 2016

    Base
salary
Short and medium-term
variable remuneration
(annual bonus)
Long-term variable remuneration
(PPSP)
Total
      Short-term Medium-term Number Value when granted
(2016: at share price €62.94)
(2015: at share price €83.35)
 
In thousands of euros
               
Dr. Dieter Zetsche 2016 2,008 1,516 1,516 40,838 2,570 7,610
  2015 2,008 2,289 2,289 37,092 3,092 9,678
Dr. Wolfgang Bernhard 2016 824 622 622 18,236 1,148 3,216
  2015 824 939 939 16,564 1,381 4,083
Dr. Christine
Hohmann-Dennhardt
2016 - - - - - -
  2015 781 851 851 14,837 1,237 3,720
Renata Jungo Brüngger 2016 781 590 590 16,336 1,028 2,989
  2015
Ola Källenius 2016 781 590 590 16,336 1,028 2,989
  2015 781 890 890 14,837 1,237 3,798
Wilfried Porth 2016 781 590 590 17,078 1,075 3,036
  2015 781 890 890 15,512 1,293 3,854
Hubertus Troska 2016 781 590 590 16,336 1,028 2,989
  2015 781 890 890 14,837 1,237 3,798
Bodo Uebber 2016 928 701 701 19,528 1,229 3,559
  2015 928 1,058 1,058 17,737 1,478 4,522
Prof. Dr. Thomas Weber 2016 781 590 590 17,345 1,092 3,053
  2015 781 890 890 15,754 1,313 3,874
               
Total 2016 7,665 5,789 5,789 162,033 10,198 29,441
  2015 7,665 8,697 8,697 147,170 12,268 37,327

The granting of non-cash benefits in kind, primarily the reimbursement of expenses for security precautions and the provision of company cars, resulted in taxable benefits for the members of the Board of Management in 2016 as shown in table B.53.

B.53 Taxable non-cash benefits and other fringe benefits

  2016 2015
In thousands of euros    
     
Dr. Dieter Zetsche1 618 148
Dr. Wolfgang Bernhard 131 90
Dr. Christine Hohmann-Dennhardt 97
Renata Jungo Brüngger 107
Ola Källenius 393 189
Wilfried Porth 171 107
Hubertus Troska2 635 493
Bodo Uebber 163 188
Prof. Dr. Thomas Weber 129 127
     
Total 2,347 1,439

1 Including an anniversary bonus of €418,464. (That entire amount was donated to non-profit organizations.)

2 For the fulfillment of disclosure obligations pursuant to Section 285 No. 9a of the German Commercial Code (HGB), this amount is reduced by €208,136 for the year 2016 (2015: €170,820). The corresponding fringe benefits were granted and borne by a subsidiary and are thus not included in the amounts to be disclosed in the annual financial statements of the parent company, Daimler AG.

Details of Board of Management remuneration in 2016 pursuant to the requirements of the German Corporate Governance Code

The following tables show for each individual member of the Board of Management on the one hand the benefits granted for the financial year and on the other hand the payments made in or for the reporting year and the retirement pension expense in or for the year under review in accordance with the recommendations of Clause 4.2.5 paragraph 3 of the German Corporate Governance Code.

The total of “benefits granted” for financial year 2015 is calculated from

  • the base salary in 2015,
  • the taxable non-cash benefits and other fringe benefits in 2015,
  • the half of the annual bonus payable in 2016 for 2015 at the value for target achievement of 100 %,
  • the half of the share-based annual bonus payable in 2017 for 2015 at the value for target achievement of 100 %,
  • the value of the long-term share-based remuneration (PPSP) at the time when granted in 2015 (payable in 2019), and
  • the retirement pension expense in 2015 (service costs in 2015).

The total of “benefits granted” for financial year 2016 is calculated from

  • the base salary in 2016,
  • the taxable non-cash benefits and other fringe benefits in 2016,
  • the half of the annual bonus payable in 2017 for 2016 at the value for target achievement of 100 %,
  • the half of the share-based annual bonus payable in 2018 for 2016 at the value for target achievement of 100 %,
  • the value when granted in 2016 (payable in 2020) of the long-term share-based remuneration (PPSP), and
  • the retirement pension expense in 2016 (service costs in 2016).

B.55 Benefits granted

Dr. Dieter Zetsche
Chairman of the Board of Management,
Head of Mercedes-Benz Cars
Dr. Wolfgang Bernhard
Daimler Trucks & Buses
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2016 min. max. 2015 2016 min. max.
In thousands of euros                
                 
Base salary 2,008 2,008 2,008 2,008 824 824 824 824
Taxable non-cash benefits
and other fringe benefits
148   618 618 618 90   131 131 131
Total 2,156 2,626 2,626 2,626 914 955 955 955
Annual variable remuneration
(50 % of annual bonus, short-term)
1,004   1,004 0 2,360 412   412 0 968
Deferral (50 % of annual bonus, medium-term) 1,004 1,004 0 2,360 412 412 0 968
Long-term variable remuneration
(plan period of 4 years)
3,092   2,570 0 6,875 1,381   1,148 0 3,070
Total 5,100 4,578 0 11,595 2,205 1,972 0 5,006
Retirement pension expense (service costs) 1,044 708 708 708 448 367 367 367
                 
Total remuneration 8,300 7,912 3,334 14,929 3,567 3,294 1,322 6,328
Total limit1 for components of remuneration granted in the reporting year
Excluding
– Taxable non-cash benefits and other fringe benefits
– Retirement pension expense (service costs)
10,149     10,149 5,464     5,464
  Dr. Christine
Hohmann-Dennhardt

Integrity & Legal Affairs
Renata Jungo Brüngger
Integrity & Legal Affairs
Ola Källenius
Mercedes-Benz Cars
Marketing & Sales
  Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2015 2016 min. max. 2015 2016 min. max.
In thousands of euros                  
                   
Base salary 781 781 781 781 781 781 781 781
Taxable non-cash benefits
and other fringe benefits

97

  107
107

107

189
  393
393

393
Total 878 888 888 888 970 1,174 1,174 1,174
Annual variable remuneration
(50 % of annual bonus, short-term)
391   391 0 919 391   391 0 919
Deferral (50 % of annual bonus, medium-term) 391 391 0 919 391 391 0 919
Long-term variable remuneration
(plan period of 4 years)
1,237   1,028 0 2,750 1,237   1,028 0 2,750
To​tal 2,019 1,810 0 4,588 2,019 1,810 0 4,588
Retirement pension expense (service costs) 117 117 117 117 235 235 235
                   
Total remuneration 2,897 2,815 1,005 5,593 3,106 3,219 1,409 5,997
Total limit1 for components of remuneration granted in the reporting year
Excluding
– Taxable non-cash benefits and other fringe benefits
– Retirement pension expense (service costs)
5,058
   
5,058

5,058
   
5,058

1 Total limit = maximum amount 1.5 times (Dr. Zetsche)/1.9 times target remuneration (base salary, target annual bonus, value when granted of PPSP, excluding fringe benefits and retirement pension commitments).

Benefits granted

  Wilfried Porth
HR and Labor Relations Director,
IT & Mercedes-Benz Vans
Hubertus Troska
Greater China
  Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2016 min. max. 2015 2016 min. max.
In thousands of euros                
                 
Base salary 781 781 781 781 781 781 781 781
Taxable non-cash benefits
and other fringe benefits
107   171 171 171 493   635 635 635
Total 888 952 952 952 1,274 1,416 1,416 1,416
Annual variable remuneration
(50 % of annual bonus, short-term)
391   391 0 919 391   391 0 919
Deferral (50 % of annual bonus, medium-term) 391 391 0 919 391 391 0 919
Long-term variable remuneration
(plan period of 4 years)
1,293   1,075 0 2,875 1,237   1,028 0 2,750
Total 2,075 1,857 0 4,713 2,019 1,810 0 4,588
Retirement pension expense (service costs) 281 247 247 247 342 239 239 239
                 
Total remuneration 3,244 3,056 1,199 5,912 3,635 3,465 1,655 6,243
Total limit1 for components of remuneration granted in the reporting year
Excluding
– Taxable non-cash benefits and other fringe benefits
– Retirement pension expense (service costs)
5,153     5,153 5,058     5,058
                 
  Bodo Uebber
Finance & Controlling,
Daimler Financial Services
Prof. Dr. Thomas Weber
Group Research &
Mercedes-Benz Cars Development
  Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2016 min. max. 2015 2016 min. max.
In thousands of euros                
                 
Base salary 928 928 928 928 781 781 781 781
Taxable non-cash benefits
and other fringe benefits

188
  163
163

163

127
  129
129

129
Total 1,116 1,091 1,091 1,091 908 910 910 910
Annual variable remuneration
(50 % of annual bonus, short-term)

464
  464
0

1,090

391
  391
0

919
Deferral (50 % of annual bonus, medium-term) 464 464 0 1,090 391 391 0 919
Long-term variable remuneration
(plan period of 4 years)

1,478
  1,229
0

3,288

1,313
  1,092
0

2,920
Total 2,406 2,157 0 5,468 2,095 1,874 0 4,758
Retirement pension expense (service costs) 834 649 649 649 419 264 264 264
                 
Total remuneration 4,356 3,897 1,740 7,208 3,422 3,048 1,174 5,932
Total limit1 for components of remuneration granted in the reporting year
Excluding
– Taxable non-cash benefits and other fringe benefits
– Retirement pension expense (service costs)
6,025    
6,025

5,187
   
5,187

1 Total limit = maximum amount 1.5 times (Dr. Zetsche)/1.9 times target remuneration (base salary, target annual bonus, value when granted of PPSP, excluding fringe benefits and retirement pension commitments).

The total of “payments made” for financial year 2015 is calculated from:

  • the base salary in 2015,
  • the taxable non-cash benefits and other fringe benefits in 2015,
  • the half of the annual bonus payable in 2016 for 2015 at the value as of the end of the reporting period in financial year 2015,
  • the half of the share-based annual bonus paid in 2015 for 2013 (deferral),
  • the value of the long-term share-based remuneration (PPSP 2011) paid in 2015,
  • the dividend equivalent of the current PPSP (2012, 2013, 2014 and 2015) paid in 2015, and
  • the retirement pension expense in 2015 (service costs in 2015).

The caps possible to ensure the total maximum amount shown in the table of benefits granted in the financial year 2015 are implemented with the payout of PPSP 2015, which constitutes the last payment to be made of the components of remuneration granted in the financial year 2015. For the financial year 2015, therefore, the possible cap would take place in 2019, the year that PPSP 2015 is paid out.

The total of “payments made” for financial year 2016 is calculated from:

  • the base salary in 2016,
  • the taxable non-cash benefits and other fringe benefits in 2016,
  • the half of the annual bonus payable in 2017 for 2016 at the value as of the end of the reporting period,
  • the half of the share-based annual bonus paid in 2016 for 2014 (deferral),
  • the amount of the long-term share-based remuneration (PPSP 2012) paid in 2016,
  • the dividend equivalent of the current PPSP (2013, 2014, 2015 and 2016) paid in 2016, and
  • the retirement pension expense in 2016 (service costs in 2016).

The caps possible to ensure the total maximum amount shown in the table of benefits granted in the year 2016 are implemented with the payout of PPSP 2016, which constitutes the last payment to be made of the components of remuneration granted in the financial year 2016. For the financial year 2016, therefore, the possible cap would take place in 2020, the year that PPSP 2016 is paid out.

B.56 Payments made

Dr. Dieter Zetsche
Chairman of the Board of Management,
Head of Mercedes-Benz Cars
Dr. Wolfgang Bernhard
Daimler Trucks & Buses
  Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2016 2015 2016
In thousands of euros        
         
Base salary 2,008 2,008 824 824
Taxable non-cash benefits and other fringe benefits 148 618 90 131
Total 2,156 2,626 914 955
Annual variable remuneration
(50 % of annual bonus, short-term)

2,289
  1,516
939
  622
Deferral (50 % of annual bonus, medium-term) 1,809 1,727 626 670
Long-term variable remuneration        
Payment of PPSP 2011 6,416 2,566
Payment of PPSP 2012 6,417 2,567
Dividend equivalent PPSP 2012 304 122
Dividend equivalent PPSP 2013 156 395 62 158
Dividend equivalent PPSP 2014 106 141 45 60
Dividend equivalent PPSP 2015 91 121 41 54
Dividend equivalent PPSP 2016 133 59
Total 11,171 10,450 4,401 4,190
Retirement pension expense (service costs) 1,044 708 448 367
         
Total remuneration 14,371 13,784 5,763 5,512
Dr. Christine
Hohmann-Dennhardt

Integrity & Legal Affairs
Renata Jungo Brüngger
Integrity & Legal Affairs
Ola Källenius
Mercedes-Benz Cars
Marketing & Sales
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2015 2016 2015 2016
In thousands of euros          
           
Base salary 781 781 781 781
Taxable non-cash benefits and other fringe benefits 97 107 189 393
Total 878 888 970 1,174
Annual variable remuneration
(50 % of annual bonus, short-term)

851

  590
890
  590
Deferral (50 % of annual bonus, medium-term) 626
Long-term variable remuneration          
Payment of PPSP 2011 2,246 268
Payment of PPSP 2012 320 411
Dividend equivalent PPSP 2012 122 15
Dividend equivalent PPSP 2013 62 22 8 21
Dividend equivalent PPSP 2014 43 8 12 15
Dividend equivalent PPSP 2015 36 7 36 48
Dividend equivalent PPSP 2016 53 53
Total 3,986 1,000 1,229 1,138
Retirement pension expense (service costs) 117 117 235
           
Total remuneration 4,864 2,005 2,316 2,547

Payments made

Wilfried Porth
HR and Labor Relations Director,
IT & Mercedes-Benz Vans
Hubertus Troska
Greater China
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2016 2015 2016
In thousands of euros        
         
Base salary 781 781 781 781
Taxable non-cash benefits and other fringe benefits 107 171 493 635
Total 888 952 1,274 1,416
Annual variable remuneration
(50 % of annual bonus, short-term)

890
  590
890
  590
Deferral (50 % of annual bonus, medium-term) 645 652 626 652
Long-term variable remuneration        
Payment of PPSP 2011 2,566 1,050
Payment of PPSP 2012 2,567 1,369
Dividend equivalent PPSP 2012 122 50
Dividend equivalent PPSP 2013 62 158 62 158
Dividend equivalent PPSP 2014 44 59 43 56
Dividend equivalent PPSP 2015 38 50 36 48
Dividend equivalent PPSP 2016 56 53
Total 4,367 4,132 2,757 2,926
Retirement pension expense (service costs) 281 247 342 239
         
Total remuneration 5,536 5,331 4,373 4,581
         
  Bodo Uebber
Finance & Controlling,
Daimler Financial Services
Prof. Dr. Thomas Weber
Group Research &
Mercedes-Benz Cars Development
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
Jan. 1 –
Dec. 31,
  2015 2016 2015 2016
In thousands of euros        
         
Base salary 928 928 781 781
Taxable non-cash benefits and other fringe benefits 188 163 127 129
Total 1,116 1,091 908 910
Annual variable remuneration
(50 % of annual bonus, short-term)

1,058
  701
890
  590
Deferral (50 % of annual bonus, medium-term) 781 775 664 652
Long-term variable remuneration        
Payment of PPSP 2011 3,068 2,725
Payment of PPSP 2012 3,068 2,725
Dividend equivalent PPSP 2012 146 129
Dividend equivalent PPSP 2013 75 189 66 168
Dividend equivalent PPSP 2014 51 67 45 60
Dividend equivalent PPSP 2015 43 58 39 51
Dividend equivalent PPSP 2016 63 56
Total 5,222 4,921 4,558 4,302
Retirement pension expense (service costs) 834 649 419 264
         
Total remuneration 7,172 6,661 5,885 5,476
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