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DES - Online Annual Report 2007

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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 Euro- Shop AG, according to which each member of the Supervisory Board shall receive appropriate compensation after the close of the financial year, as determined by resolution of the Annual General Meeting. Membership in committees is not taken into account when the compensation paid to the Supervisory Board is determined. Moreover, compensation does not contain any performance-based elements.

In line with the proposal by the Executive Board and Supervisory Board, the Annual General Meeting resolved on 21 June, 2007 to grant the members of the Supervisory Board the following remuneration for the 2006 financial year: €30,000 for the Chairman, €22,500 for the Deputy Chairman and €15,000 for each of the other members of the Supervisory Board. In addition, travel costs are reimbursed. Members who have served on the Board for less than a full financial year receive pro-rated compensation.

A proposal will be made to the Annual General Meeting to set out the compensation for the Supervisory Board in the Articles of Association.


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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