The total remuneration and related compensation costs of the members of the Board of Directors and former directors in 2007 can be specified as follows:
| in € | 2007 | 2006 | 2005 |
| Fixum | 4,194,733 | 4,564,086 | 4,908,190 |
| Bonus (related to reporting period) | 3,294,312 | 2,361,451 | 4,850,449 |
| Fees | 390,000 | 395,000 | 260,000 |
| Total | 7,879,045 | 7,320,537 | 10,018,639 |
The cash remuneration of the individual members of the Board of Directors was as follows:
|
2007 (in €) | Fixum |
Bonus related to 2007 | Fees | Total |
| Directors | ||||
| Rüdiger Grube | 30,000 | 109,813 | 85,000 | 224,813 |
| Louis Gallois | 1,147,701 | 957,885 | — | 2,105,586 |
| Rolf Bartke | — | 11,766 | 15,000 | 26,766 |
| Dominique D’Hinnin | — | 11,766 | 15,000 | 26,766 |
| Juan Manuel Eguiagaray Ucelay | 30,000 | 62,750 | 50,000 | 142,750 |
| Arnaud Lagardère |
60,000 |
113,734 |
60,000 |
233,734 |
|
Hermann-Josef Lamberti | — |
11,766 |
10,000 |
21,766 |
|
Lakshmi N. Mittal* | — | — | — | — |
|
Sir John Parker | — |
11,766 |
20,000 |
31,766 |
|
Michel Pébereau | — |
41,833 |
25,000 |
66,833 |
|
Bodo Uebber | — |
41,833 |
10,000 |
51,833 |
| Former directors | ||||
|
Manfred Bischoff |
60,000 |
31,375 |
50,000 |
141,375 |
|
Thomas Enders** |
1,218,157 |
800,275 | — |
2,018,432 |
|
Jean-Paul Gut |
818,937 |
388,500 | — |
1,207,437 |
|
Hans-Peter Ring** |
769,938 |
597,282 | — |
1,367,220 |
|
Francois David |
30,000 |
50,984 |
30,000 |
110,984 |
|
Michael Rogowski |
30,000 |
50,984 |
20,000 |
100,984 |
| Total |
4,194,733 |
3,294,312 |
390,000 |
7,879,045 |
(*) Remuneration waived at the Director’s request.
(**) Pro rata in accordance with their periods of membership with the Board of Directors.
The table below gives an overview of the Long term Incentive Plans (performance units) granted by EADS in 2007 to the Chief Executive Officer:
|
Unit plan: number of performance units* |
granted in 2007 |
vesting date |
| Louis Gallois |
33,700 |
Vesting schedule is made up of 4 payments over 2 years: a) 25% expected in May 2011; b) 25% expected in November 2011; c) 25% expected in May 2012; d) 25% expected in November 2012. |
(*) Vesting of all Performance units granted to the Chief Executive Officer is subject to performance conditions.
Pension benefits
The Members of the Executive Committee have pension promises as part of their employment agreements. The general policy is to give them annual pensions of 50% of their annual base salary upon reaching 5 years of service in the Executive Committee of EADS at the age of 60 or 65.
These rights can gradually increase to 60% after a second term, usually after ten years of service in the EADS Executive Committee.
These pension schemes have been implemented through collective executive pension plans in France and Germany. These pension promises have also separate rules e.g. for minimum length of service and other conditions to comply with national regulations.
For the Chief Executive Officer, the amount of the pension defined benefit obligation amounted to €0.8 million as of 31st December 2007, while the amount of current service and interest cost related to his pension promise accounted for during fiscal year 2007 represented an expense of €0.6 million.
This obligation has been accrued for in the Consolidated Financial Statements.
Termination package
Under the terms of his employment contract, the Chief Executive Officer has an indefinite term contract (whereas, in accordance with the Articles of Association of the Company, the length of the mandate is limited). The employment contract can be terminated at any time with six months notice.
As part of his employment contract, the Chief Executive Officer is entitled to a termination package when the parting results from a decision by the Company. The Board has decided to reduce the maximum termination indemnity from 24 months (cf. report of the Board of Directors 2006) to 18 months of annual total target salary.
This new rule is applicable to the Chief Executive Officer from the renewal of his employment contract in October 2007. The indemnity could be reduced pro rata or would even not be applicable depending on age and date of retirement.
Apart from the Chief Executive Officer, no other Director who is in office is entitled to a termination package.
Non-competition clause
A non competition clause is included in the contract of the Chief Executive Officer. This clause is applicable for a one-year period, starting at the end of the employment contract, and is renewable for one year at the Company’s initiative.
The Chief Executive Officer will receive a compensation based on his monthly salary (including variable pay) in return of the application of the non competition clause.
Other benefits
The Chief Executive Officer is entitled to a company car. The value of his company car as at 31st December 2007 is €23,977.
