Compensation Report 2006
Supervisory Board Compensation 2006
The company has chosen not to publish a detailed breakdown of the compensation received by individual members of the Supervisory Board, separated into components. Instead, the compensation paid to members of the Supervisory Board is reported as a collective sum. In view of the modest amount of these payments, and in accordance with the rules laid down in the articles of association, as cited below, the company is of the opinion that a presentation of the total compensation provides sufficient data on which to assess the appropriateness of the payments received.
The compensation awarded to members of the Supervisory Board was determined by the Annual General Meeting in response to a proposal by the Board of Management and the Supervisory Board.
The total compensation paid to members of the Supervisory Board of MTU Aero Engines Holding AG in 2006, for their collective services, amounted to €0.7 million (2005: €0.5 million).
The compensation for members of the Supervisory Board is established relative to the size of the company and as a function of the duties and responsibilities of the respective members. The members of the Supervisory Board receive a fixed payment for their work. The Chairman and Deputy Chairman of the Supervisory Board receive additional payments, as do the chairs and members of the Audit Committee and Personnel Committee.
Pursuant to Section 12 of the Articles of Association of MTU Aero Engines Holding AG, members of the Supervisory Board receive a fixed payment of €30,000, payable at the end of the fiscal year; this sum is tripled in the case of the Chairman of the Supervisory Board, and multiplied by one-and-a-half in the case of the Deputy Chairman. The chairs of the Audit and Personnel Committees receive a further fixed payment of €10,000, and the other members of these committees each receive a fixed payment of €5,000. Members of the Supervisory Board receive an attendance fee of €3,000 for each meeting of the Supervisory Board and its committees – subject to an upper limit of €3,000 per day. Expenses incurred in connection with the exercise of their office are reimbursed, as is the value-added tax payable on the fees.
The members of the Supervisory Board do not receive any sharebased compensation.
Further information about the Supervisory Board compensation can be found in the Annual Report 2006 (page 122).