Annual Report 2007
9. Principles of the remuneration system
The remuneration of the Executive Board is made up of a base remuneration and variable remuneration. At least four-fifths of the remuneration is linked to sales, earnings and other corporate targets. A portion of the variable remuneration is paid as a "long-term component" on the basis of a phantom share plan (PPS). Furthermore, a stock option plan exists for Executive Board members and officers in the Group, from which no allocations have been made since January 2005. In July 2007, a new, share-linked long-term incentive program was established for Executive Board members and officers in the Group.
The members of the Supervisory Board receive a fixed and a performance-linked remuneration. The performance-linked components are linked to the annual performance of the Company, measured as sales revenue before taxes and the long-term performance of the Software AG stock.
Please refer to the Remuneration Report of the Corporate Governance Report and the Notes for details concerning the remuneration of board members.
