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DES - Online Annual Report 2008

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Remuneration report

Compensation system for the Executive Board

Compensation for the Executive Board is set by the Executive Committee of the Supervisory Board. The compensation system provides for a fixed basic annual compensation component based on the individual Executive Board member’s duties and a variable compensation component. This compensation component is paid annually and is based on personal performance and the performance of the Executive Board as a whole, as well as the Company’s economic situation, success and future prospects. The variable compensation is paid after the Supervisory Board approves the consolidated financial statements. There are no stock option plans or similar securities-based incentive systems. In the event that the Company does not wish to renew the existing contracts of the members of the Executive Board upon their expiration, Claus-Matthias Böge would receive a one-time severance payment of €150 thousand and Olaf Borkers would receive three months’ salary.

Compensation system for the Supervisory Board

The compensation of the Supervisory Board is based on section 8 (4) of the Articles of Association of Deutsche EuroShop AG. In accordance with the Articles of Association, the compensation amounts to €50,000 for the chairman (previous year: €30,000), €37,500 for the deputy chairman (previous year: €22,500) and €25,000 for each of the other members of the Supervisory Board (previous year: €15,000). Membership in committees is not additionally taken into account when the compensation of the Supervisory Board is determined. Moreover, compensation does not contain any performance-based elements. The compensation is fixed based on the business model and size of the Company and hence the responsibility associated with the role. The Company’s financial position is also taken into consideration. If a member of the Supervisory Board should leave the Supervisory Board during the financial year, the member shall receive the remuneration pro rata. Cash expenses are also reimbursed in accordance with section 8 (5) of the Articles of Association.

Miscellaneous

Members of the Executive and Supervisory boards do not receive loans from the Company. No pensions are paid to former members of the Executive or Supervisory boards or to their dependents.

For further details, please see the supplementary disclosures on remuneration included in the Group Management Report.

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