45 Remuneration of the Board of Management and the Supervisory Board

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2013

 

2012

Board of Management remuneration

 

 

 

 

Non-performance-related remuneration

 

11,638,328

 

9,506,343

Performance-related remuneration

 

52,444,300

 

47,000,000

Supervisory Board remuneration

 

 

 

 

Fixed remuneration components

 

528,671

 

651,625

Variable remuneration components

 

9,245,859

 

8,125,886

The fixed remuneration of the Board of Management also includes differing levels of remuneration for appointments assumed at Group companies as well as the cost or cash equivalent of noncash and other benefits, such as the use of company cars and the payment of insurance premiums. Taxes due on the noncash benefits were mainly borne by Volkswagen AG. The variable remuneration paid to each member of the Board of Management comprises a bonus, which relates to business performance over the preceding two years, and, since 2010, a Long-Term Incentive (LTI) plan, which is based on the previous four fiscal years, subject to an introductory phase.

On December 31, 2013, the pension provisions for members of the Board of Management amounted to €107,676,518 (previous year: €103,535,287). Current pensions are index-linked in accordance with the index-linking of the highest collectively agreed salary insofar as the application of section 16 of the Gesetz zur Verbesserung der betrieblichen Altersversorgung (BetrAVG – German Company Pension Act) does not lead to a larger increase. Members of the Board of Management with contracts entered into on or after January 1, 2010 are entitled to payment of their normal remuneration for twelve months in the event of illness. Contracts entered into before that date grant remuneration for six months. In the event of disability, they are entitled to the retirement pension. Surviving dependents receive a widow’s pension of 66 2/3% and a 20% orphan’s pension per child based on the pension of the former member of the Board of Management.

Retired members of the Board of Management and their surviving dependents received €9,977,972 (previous year: €8,797,230). Provisions for pensions for this group of people were recognized in the amount of €140,165,675 (previous year: €146,501,307).

Interest-free advances in the total amount of €480,000 (previous year: €480,000) have been granted to members of the Board of Management. The advances will be set off against performance- related remuneration in the following year. Loans in the total amount of €25,000 (repayments in 2013: €10,833; amount outstanding: €0) had originally been granted to members of the Supervisory Board. The loans generally bore interest at a rate of 4% and had an agreed term of up to 15 years.

The individual remuneration of the members of the Board of Management and the Supervisory Board is explained in the remuneration report in the management report. A comprehensive assessment of the individual bonus components of the LTI is also to be found there.