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    Compensation For Executive and Supervisory Board Members

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    This document outlines the compensation for Executive Board and Supervisory Board members at SAP for 2015. Compensation for Executive Board members has three elements - a fixed annual salary, a short-term incentive based on SAP's performance against key performance targets, and a long-term incentive tied to SAP's share price. The short-term incentive depends on cloud revenue growth, operating margin increase, and new bookings. The long-term incentive is determined by a restricted share unit plan based on revenue and other strategic objectives. The Supervisory Board is responsible for setting compensation and assessing performance against targets.

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    Compensation For Executive and Supervisory Board Members

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    This document outlines the compensation for Executive Board and Supervisory Board members at SAP for 2015. Compensation for Executive Board members has three elements - a fixed annual salary, a short-term incentive based on SAP's performance against key performance targets, and a long-term incentive tied to SAP's share price. The short-term incentive depends on cloud revenue growth, operating margin increase, and new bookings. The long-term incentive is determined by a restricted share unit plan based on revenue and other strategic objectives. The Supervisory Board is responsible for setting compensation and assessing performance against targets.

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    This document outlines the compensation for Executive Board and Supervisory Board members at SAP for 2015. Compensation for Executive Board members has three elements - a fixed annual salary, a short-term incentive based on SAP's performance against key performance targets, and a long-term incentive tied to SAP's share price. The short-term incentive depends on cloud revenue growth, operating margin increase, and new bookings. The long-term incentive is determined by a restricted share unit plan based on revenue and other strategic objectives. The Supervisory Board is responsible for setting compensation and assessing performance against targets.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views2 pages

    Compensation For Executive and Supervisory Board Members

    Uploaded by

    Proj
    This document outlines the compensation for Executive Board and Supervisory Board members at SAP for 2015. Compensation for Executive Board members has three elements - a fixed annual salary, a short-term incentive based on SAP's performance against key performance targets, and a long-term incentive tied to SAP's share price. The short-term incentive depends on cloud revenue growth, operating margin increase, and new bookings. The long-term incentive is determined by a restricted share unit plan based on revenue and other strategic objectives. The Supervisory Board is responsible for setting compensation and assessing performance against targets.

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    Compensation Report

    COMPENSATION FOR EXECUTIVE AND international stage. The amount of variable


    SUPERVISORY BOARD MEMBERS compensation depends on SAP’s
    This compensation report outlines the performance against performance targets
    criteria that we applied for the year 2015 to that the Supervisory Board sets for each
    determine compensation for Executive plan year. The performance targets are key
    Board and Supervisory Board members, performance indicator (KPI) values aligned
    discloses the amount of compensation paid, to the SAP budget for the plan year.
    and describes the compensation systems. It The following criteria apply to the elements
    also contains information about share- of Executive Board compensation for 2015:
    based payment plans for Executive Board 1) This compensation report is part of the
    members, shares held by Executive Board audited management report
    and Supervisory Board members, and the – The fixed annual salary element is paid as
    directors’ dealings required to be disclosed a monthly salary.
    in accordance with the German Securities – The variable STI element was determined
    Trading Act. under the STI 2015 plan. Under this plan,
    COMPENSATION FOR EXECUTIVE BOARD the STI compensation depends on the SAP
    MEMBERS Group’s performance against the
    Compensation System for 2015 predefined target values for three KPIs:
    The compensation for 2015 for Executive non-IFRS constant currency cloud and
    Board members is intended to reflect SAP’s software growth; non-IFRS constant
    company size and global presence as well as currency operating margin increase; and
    our economic and financial standing. The non-IFRS constant currency new and upsell
    compensation level is internationally bookings. In addition, the STI 2015 plan
    competitive to reward committed, provides for a discretionary element that
    successful work in a dynamic business allows the Supervisory Board, after the end
    environment. of the fiscal year 2015, to address not only
    The Executive Board compensation package an Executive Board member’s individual
    is performance-based. It has three performance, but also SAP’s performance
    elements: in terms of market position, innovative
    – A fixed annual salary element power, customer satisfaction, employee
    – A variable short-term incentive (STI) satisfaction, attractiveness as an employer
    element to reward performance in the plan and the performance in our Business
    year Network Group.
    – A variable long-term incentive (LTI)
    element tied to the price of SAP shares to Moreover, if there has been any
    reward performance over multiple years extraordinary and unforeseeable event, the
    Supervisory Board can, at its reasonable
    The Supervisory Board sets a compensation discretion, retroactively adjust payouts up
    target for the sum of the fixed and the or down in the interest of SAP. For 2014,
    variable elements. It reviews, and if this discretion was applied.
    appropriate, revises, this compensation On February 18, 2016, the Supervisory
    target every year. The review takes into Board assessed SAP’s performance against
    account SAP’s business performance and the agreed targets and determined the
    the compensation paid to board members amount of compensation payable under
    at comparable companies on the the STI 2015 plan. The STI 2015 plan pays
    out after the Annual General Meeting of
    Shareholders in May 2016.
    – The variable LTI element was determined
    under the RSU Milestone Plan 2015. “RSU”
    stands for “restricted share unit.” This
    originally four-year plan was established in
    2012 and focuses on the SAP share price
    and on certain objectives derived from our
    Company strategy for the years through
    2015. For each of the four years, the
    members of the Executive Board are
    allocated a certain number of RSUs for the
    respective year based on a budget amount
    that was granted to each Executive Board
    member in 2012 already for each of the
    years 2012 through 2015. The number of
    RSUs allocated to each member for a given
    year is their target amount (an amount in
    euros) for that year divided by the SAP
    share price over a reference period (defined
    in the RSU Milestone Plan 2015 terms) at
    the beginning of the respective year. The
    number of RSUs an Executive Board
    member actually earns in respect of a given
    year depends on the Company performance
    against the objectives for that year (a year is
    a “performance period” in the plan). The
    objectives derive from SAP’s strategy for the
    period to 2015. The plan objectives relate to
    two KPIs: non-IFRS total revenue and non-
    IFRS

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