Discount share purchase
For fiscal 2005/06, the Executive Board of ThyssenKrupp AG resolved to introduce a new compensation instrument for selected ThyssenKrupp Group executives. The program is being offered again in fiscal 2006/07.
Objective
With the discounted share purchase, variable performance-related compensation is to be expanded to include a Group-related element which integrates the central indicator TKVA (= ThyssenKrupp Value Added) into the incentive system. This share price- and value-based compensation component will strengthen the focus on Group goals and executives’ identification with the Group.
Model
At the end of a fiscal year (= performance period), recipients will be offered the opportunity to purchase ThyssenKrupp shares at a fixed € amount with a discount covered by the employer. The remaining amount is to be paid by participants.
The discount amount is dependent on (Group) TKVA in the performance period and may be up to 80%.
The shares will be purchased via the stock market once the performance period expires. Shares acquired within the framework of the program are blocked for a period of three years.
Eligible participants
Participants in the plan are selected executives in Germany who do not benefit from the Mid Term Incentive Plan. Around 450 people were eligible for the program in fiscal 2005/06.
Further installments
The Executive Board of ThyssenKrupp AG will take a new decision on whether to offer a further installment of the program in the coming year.