Annual Report 2009

Home > Group Management Report and Management Report on Salzgitter AG > Business and Organization > Management and Control

Management and Control

The Executive Board

The members of the Executive Board of Salzgitter AG are appointed by the Supervisory Board. The Supervisory Board can rescind the appointment for an important reason.

The Executive Board heads up the company under its own responsibility. A restriction that certain transactions may only be concluded subject to the approval of the Supervisory Board has been imposed.

The General Meeting of Shareholders can only decide matters affecting the management of the Group if this has been requested by the Executive Board.

In the financial year 2009, the following members belonged to the Executive Board of Salzgitter AG:

Prof. Dr.-Ing. h. c. Wolfgang Leese

Chairman

a)	Mannesmannröhren-Werke GmbH (Chairman) Salzgitter Mannesmann Handel GmbH (Chairman) Salzgitter Stahl GmbH (Chairman) MAN Nutzfahrzeuge AG Aurubis AG since October 1, 2009 Peiner Träger GmbH (Chairman) until March 23, 2009

Prof. Dr.-Ing. Heinz Jörg Fuhrmann

Vice Chairman
Finance and the Technology Division
Technologie

a)	Klöckner-Werke AG (Chairman) KHS AG (Chairman since February 1, 2009) Salzgitter Mannesmann Handel GmbH (Vice Chairman) Mannesmannröhren-Werke GmbH Aurubis AG since January 5, 2009 Salzgitter Stahl GmbH Salzgitter Flachstahl GmbH EUROPIPE GmbH (Supervisory Board and Shareholders’ Committee) Öffentliche Lebensversicherung Braunschweig Öffentliche Sachversicherung Braunschweig TÜV Nord AG
b)	Ets. Robert et Cie S.A.S. (Comité de Surveillance)

Wolfgang Eging

Tubes Division
Chairman of the Executive Board of Mannesmannröhren-
Werke GmbH

Hüttenwerke Krupp Mannesmann GmbH (Vice Chairman until October 7, 2009, Chairman since October 7, 2009, Member of the Shareholders’ Committee)
EUROPIPE GmbH (Chairman until April 29, 2009, Vice Chairman since April 29, 2009, Member of the Shareholders’ Committee)
Salzgitter Mannesmann Präzisrohr GmbH (Chairman)
Salzgitter Mannesmann Line Pipe GmbH (Chairman)
Salzgitter Mannesmann Grobblech GmbH (Chairman)
Salzgitter Mannesmann Handel GmbH

Borusan Mannesmann Boru Yatirim Holding
A.S. (Board of Directors, Vice Chairman)
Salzgitter Mannesmann Précision Etirage S.A.S. (Conseil d’Administration)

Hans Fischer

until December 31, 2009
Steel Division
Chairman of the Executive Board of Salzgitter
Stahl GmbH until December 31, 2009

a)	Salzgitter Flachstahl GmbH (Chairman) until December 31, 2009 Ilsenburger Grobblech GmbH (Chairman) until December 31, 2009 Peiner Träger GmbH (Chairman since March 23, 2009) until December 31, 2009 Hüttenwerke Krupp Mannesmann GmbH until December 31, 2009 Mannesmannröhren-Werke GmbH until December 31, 2009
b)	ThyssenKrupp GfT Bautechnik GmbH (Advisory Council) until December 31, 2009

Heinz Groschke

Trading Division
Chairman of the Executive Board of
Salzgitter Mannesmann Handel GmbH

Ilsenburger Grobblech GmbH
Salzgitter Mannesmann Line Pipe GmbH
Klöckner-Werke AG
KHS AG

EUROPIPE GmbH (Shareholders’ Committee)
Salzgitter Mannesmann International (HK)
Ltd. (Board of Administration)
Salzgitter Mannesmann International (Asia)
Pte. Ltd. (Board of Administration)
Salzgitter Mannesmann (Scandinavia) AB
(Board of Administration)
Salzgitter Mannesmann (Italia) S.r.l.
(Board of Administration)
Salzgitter Mannesmann (España) S.A.
(Board of Administration)
Salzgitter Mannesmann International (USA)
Inc. (Board of Directors, Chairman)
Salzgitter Mannesmann International
(Canada) Inc. (Board of Directors, Chairman)
Salzgitter Mannesmann International
(México) S.A. de C.V. (Board of Directors, Chairman)
Salzgitter Mannesmann Trade (Beijing)
Co. Ltd. (Board of Directors, Chairman)
Salzgitter Mannesmann Pentasteel International
(India) Pvt. Ltd. (Board of Directors, Chairman)
Salzgitter Mannesmann (UK) Ltd. (Board of Directors, Chairman)
A.P. Steel (U.K.) Ltd. (Board of Directors, Chairman)

Peter-Jürgen Schneider

Personnel and the Services Division

a)	Mannesmannröhren-Werke GmbH Salzgitter Stahl GmbH Salzgitter Flachstahl GmbH Peiner Träger GmbH Ilsenburger Grobblech GmbH Verkehrsbetriebe Peine-Salzgitter GmbH (Chairman) SZST Salzgitter Service und Technik GmbH (Chairman) Salzgitter Mannesmann Präzisrohr GmbH Klöckner-Werke AG KHS AG Salzgitter Mannesmann Handel GmbH since May 29, 2009
b)	Hansaport Hafenbetriebsgesellschaft mbH (Supervisory Board, Chairman) Projekt Region Braunschweig GmbH (Supervisory Board) Salzgitter Wohnbau Gesellschaft mbH since February 17, 2010

Johannes Nonn

since January 1, 2010
Steel Division
Chairman of the Executive Board of
Salzgitter Stahl GmbH since January 1, 2010
Chairman of the Executive Board of Salzgitter
Flachstahl GmbH until December 31, 2009

a)	Salzgitter Flachstahl GmbH since January 1, 2010 (Chairman) Ilsenburger Grobblech GmbH since January 1, 2010 (Chairman) Peiner Träger GmbH since January 1, 2010 (Chairman) Hüttenwerke Krupp Mannesmann GmbH since January 1, 2010 Salzgitter Mannesmann Handel GmbH Verkehrsbetriebe Peine-Salzgitter GmbH until December 31, 2009 Salzgitter Mannesmann Line Pipe GmbH until December 31, 2009
b)	ThyssenKrupp GfT Bautechnik GmbH (Advisory Council) since January 1, 2010

The Supervisory Board

Rainer Thieme

Chairman
Chairman of the Management Board of
Wilhelm Karmann GmbH, retired.

a)	Köster Holding AG Schmitz Cargobull AG

Jürgen Peters

Vice Chairman
President of the International Metal Workers
Federation (IMF) until May 2009

a)	Volkswagen AG (Vice Chairman)

Manfred Bogen

Chairman of the Works Council of EUROPIPE GmbH

a)	EUROPIPE GmbH
b)	BKK VOR ORT (Board of Administration) until July 1, 2009

Hasan Cakir

Chairman of the Works Council of
Salzgitter Flachstahl GmbH

b)	Salzgitter Stahl GmbH Salzgitter Flachstahl GmbH

Ulrich Dickert

Chairman of the Works Council of
Salzgitter Mannesmann Stainless Tubes
Deutschland GmbH

no membership in other governing bodies

Karl Ehlerding

Businessman

a)	WCM Beteiligungs- und Grundbesitz AG Klöckner-Werke AG KHS Maschinen- und Anlagenbau AG MATERNUS-Kliniken AG Deutsche Real Estate AG until July 8, 2009
b)	Deutsche Bank AG (Advisory Council)

Hannelore Elze

Secretary of IG Metall – Management Board

a)	Hydro Aluminium Deutschland GmbH (Vice Chairwoman) NORSK Hydro Deutschland Verwaltungs- GmbH (Vice Chairwoman) AluNorf GmbH since January 29, 2009

Dr. Lothar Hagebölling

Secretary of State, Head of the State Chancellery
of Lower Saxony

a)	E.ON Energy from Waste AG
b)	Norddeutsche Landesbank (Advisory Council – Public Relations and Administration)

Prof. Dr.-Ing. Dr. h.c. Jürgen Hesselbach

President of the Technische Universität Carolo-Wilhelmina zu Braunschweig

a)	Öffentliche Versicherung Braunschweig Öffentliche Sachversicherung Braunschweig
b)	Regional Advisory Council of the Braunschweigische Landessparkasse

Ulrich Kimpel

since January 16, 2009
Chairman of the Works Council of Hüttenwerke
Krupp Mannesmann GmbH since June 3, 2009

a)	Hüttenwerke Krupp Mannesmann GmbH

Dr. Dieter Köster

Chairman of the Executive Board of Köster Holding AG

no membership in other governing bodies

Dr. Arno Morenz

Vice President of DSW Deutsche Schutzvereinigung
für Wertpapierbesitz e.V.
Chairman of the Executive Board of
Aachener Rückversicherung, retired.

a)	alfabet AG (Chairman) Business Keeper AG (Chairman) FIL Investment Management GmbH (Supervisory Board) since January 1, 2009
b)	Fidelity Funds, Luxembourg (Board of Administration)

Udo Pfante

Chairman of the Works Council of Salzgitter
Mannesmann Stahlhandel GmbH

a)	Salzgitter Mannesmann Handel GmbH

Prof. Dr. Hannes Rehm

Spokesman of the Steering Committee
of the Financial Market Stabilization Agency
(SoFFin) since January 26, 2009
President of the Hanover Chamber of Industry
and Commerce (IHK) since January 1, 2009
Chairman of the Board of Directors of Norddeutsche
Landesbank Girozentrale, retired.

b)	Porzellanmanufaktur Fürstenberg GmbH (Supervisory Board) until July 15, 2009

Dr. Rudolf Rupprecht

Chairman of the Executive Board of MAN AG,
retired

a)	MAN AG Demag Cranes AG Bilfinger & Berger AG
b)	Bayerische Staatsforsten (Supervisory Board)

Christian Schwandt

Chairman of the Group’s Work Council of
Salzgitter AG
Chairman of the Works Council of
SZST Salzgitter Service und Technik GmbH

a)	SZST Salzgitter Service und Technik GmbH

Dr. Werner Tegtmeier

State Secretary, retired, of the Federal Ministry
of Labor and Social Affairs

a)	Mannesmannröhren-Werke GmbH

Dr. Johannes Teyssen

Vice Chairman of the Board of Directors
of E.ON AG

a)	Deutsche Bank AG E.ON Energie AG E.ON Ruhrgas AG
b)	E.ON Nordic AB (Board Member) E.ON Sverige AB (Board Member)

Friedrich-Wilhelm Tölkes

until January 15, 2009
Chairman of the Works Council of Hüttenwerke
Krupp Mannesmann GmbH until May 31, 2009

a)	Mannesmannröhren-Werke GmbH until January 15, 2009

Dr. Hans-Jürgen Urban

Executive Member of the Management Board
of IG Metall

a)	Salzgitter Stahl GmbH (Supervisory Board, Vice Chairman)
b)	Treuhandverwaltung IGEMET GmbH

Helmut Weber

Chairman of the Works Council of KHS AG

a)	Klöckner-Werke AG KHS AG

Prof. Dr. Martin Winterkorn

Chairman of the Board of Directors
of Volkswagen AG
Chairman of the Board of Directors of Porsche
Automobil Holding SE since September 15, 2009

a)	AUDI AG (Chairman) Scania AB (Chairman) TÜV Süddeutschland Holding AG until May 29, 2009 FC Bayern München AG Infineon Technologies AG until January 31, 2009
b)	SEAT S.A.

Dr. Wilfried Lochte

Honorary Chairman
Chairman of the Executive Board
of MAN Nutzfahrzeuge AG, retired
Member of the Executive Board
of MAN Aktiengesellschaft, retired.

a)	Schmitz Cargobull AG (Honorary Chairman)

a) Membership in other supervisory boards formed subject to the regulations and the definition of Section 125 German Stock Corporation Act (AktG)

b) Membership in comparable domestic and foreign controlling bodies of commercial enterprises

Remuneration of the Executive Board and the Supervisory Board

Remuneration of the Executive Board

The remuneration of the members of Executive Board is determined in their contracts of employment.

The criteria for assessing the amount of the remuneration are the tasks of the respective Board members and their own individual performance, as well as the economic situation and success of the company as measured in the context of its comparative business environment.

Along with a fixed basic component, each member of the Executive Board receives a variable component. The latter is divided into two parts: one of which is results-based and calculated according to the return on capital employed (ROCE), and the other which depends on the overall performance of the individual Board member. The results-based part is capped and evaluated over a number of years, which also creates a long-term incentive to achieve good, sustainable results.

The members of the Executive Board also receive a pension commitment which is a percentage portion of 60 % of the fixed basic remuneration component and therefore does not depend on the variable component. No other payments have been pledged in the event that a Board member’s service to the company should end.

No benefits were granted or pledged by external parties to the individual members of the Executive Board in the financial year 2009 or in 2008 for their activities as Executive Board members.

Remuneration received by the individual members of the Executive Board:

In €	Annual payment in 2009
	Fixed remunera- tion	Remunera- tion in kind	Variable remunera- tion	Remuneration for Supervisory Board activities in subsidiaries	Total
Prof. Dr.-Ing. h. c. Wolfgang Leese (Chairman)	720,000	49,012	780,000	1,100	1,550,112
Prof. Dr.-Ing. Heinz Jörg Fuhrmann (Vice Chairman)	516,000	27,861	559,000	61,850	1,164,711
Wolfgang Eging	420,000	19,014	455,000	900	894,914
Hans Fischer	420,000	25,171	455,000	1,500	901,671
Heinz Groschke	420,000	23,127	455,000	26,363	924,490
Peter-Jürgen Schneider	420,000	36,315	455,000	34,113	945,428
Total	2,916,000	180,500	3,159,000	125,826	6,381,326

In €	Annual payment in 2008
	Fixed remunera- tion	Remunera- tion in kind	Variable remunera- tion	Remuneration for Supervisory Board activities in subsidiaries	Total
Prof. Dr.-Ing. h. c. Wolfgang Leese (Chairman)	720,000	49,181	1,020,000	1,400	1,790,581
Prof. Dr.-Ing. Heinz Jörg Fuhrmann (Vice Chairman)	516,000	27,236	731,000	57,763	1,331,999
Wolfgang Eging	420,000	18,596	595,000	900	1,034,496
Hans Fischer	420,000	21,196	595,000	1,500	1,037,696
Heinz Groschke	420,000	20,995	595,000	26,113	1,062,108
Peter-Jürgen Schneider	420,000	35,893	595,000	33,813	1,084,706
Total	2,916,000	173,097	4,131,000	121,489	7,341,586

In €	Pension claim
	Annual pay- ment upon pension eligi- bility (as per 31/12/2009)	Transfers to pension provisions in FY 2009	Annual pay- ment upon pension eligi- bility (as per 31/12/2008	Transfers to pension provisions in FY 2008
Prof. Dr.-Ing. h. c. Wolfgang Leese (Chairman)	432,000¹⁾	802,836	432,000¹⁾	1,289,970
Prof. Dr.-Ing. Heinz Jörg Fuhrmann (Vice Chairman)	309,600¹⁾	377,813	309,600¹⁾	523,713
Wolfgang Eging	252,000¹⁾	442,493	252,000¹⁾	699,440
Hans Fischer	91,213²⁾	108,424	211,680	271,814
Heinz Groschke	252,000¹⁾	424,096	252,000¹⁾	699,696
Peter-Jürgen Schneider	103,824³⁾	39,742	110,880	370,038
Total	1,440,637	2,195,404	1,568,160	3,854,671

1) Including a pension commitment taken over against compensation by the former employer
2) Taking account of contract termination on 31/12/2009
3) Correction of pension entitlement achievable upon expiry of contract (maximum age of 66)

Remuneration of the Supervisory Board

Each member of the Supervisory Board receives an annual remuneration in accordance with the resolution of the General Meeting of Shareholders last taken on November 17, 2005. This remuneration is based on the individual tasks and the economic situation of the company. Along with a fixed component of € 12,000, each Supervisory Board member also receives two performance-related components: the first depends on the dividend paid for the respective financial year and comes to € 400 per dividend of € 0.01 which is disbursed in excess of € 0.20 per share. The second variable component is based on the average consolidated results (earnings before tax, EBT) of the last three financial years. It amounts to € 300 per full € 10 million on the portion of the pre-tax result which exceeds € 150 million on average over the last three financial years.

The Chairman of the Supervisory Board receives double and the Vice Chairman one and a half times the amount of the sum derived from the addition of the respective remuneration components. Beyond this, compensation is paid for membership of the committees of the Supervisory Board as well as attendance fees.

This structure is to be adjusted, whenever appropriate, to reflect the more stringent legal requirements placed on Supervisory Board members and the endeavors to ensure greater independency of these board members.

Annual remuneration received by the individual Supervisory Board members in 2009:

In €	Fixed remuneration	Performance-based remuneration for		Commitee remuneration	Attendance fees	Total
		annual perfor- mance¹⁾	long-term company performance
Rainer Thieme, Chairman	24,000	4,000	27,000	2,000	4,500	61,500
Jürgen Peters, Vice Chairman	18,000	3,000	20,250	1,000	3,500	45,750
Manfred Bogen	12,000	2,000	13,500		1,250	28,750
Hasan Cakir	12,000	2,000	13,500		1,250	28,750
Ulrich Dickert	12,000	2,000	13,500		1,250	28,750
Karl Ehlerding	12,000	2,000	13,500		750	28,250
Hannelore Elze	12,000	2,000	13,500	1,000	1,750	30,250
Dr. Lothar Hagebölling	12,000	2,000	13,500	1,000	3,750	32,250
Prof. Dr.-Ing. Dr. h. c. Jürgen Hesselbach	12,000	2,000	13,500		1,250	28,750
Ulrich Kimpel, since January 16, 2009	12,000	2,000	13,500		1,250	28,750
Dr. Dieter Köster	12,000	2,000	13,500		1,000	28,500
Dr. Arno Morenz	12,000	2,000	13,500		1,000	28,500
Udo Pfante	12,000	2,000	13,500		1,250	28,750
Prof. Dr. Hannes Rehm	12,000	2,000	13,500	2,000	1,750	31,250
Dr. Rudolf Rupprecht	12,000	2,000	13,500		1,250	28,750
Christian Schwandt	12,000	2,000	13,500	1,000	3,500	32,000
Dr. Werner Tegtmeier	12,000	2,000	13,500		1,000	28,500
Dr. Johannes Teyssen	12,000	2,000	13,500		1,000	28,500
Friedrich-Wilhelm Tölkes, until January 15, 2009	1,000	162	1,130			2,292
Dr. Hans-Jürgen Urban	12,000	2,000	13,500		1,000	28,500
Helmut Weber	12,000	2,000	13,500	1,000	2,000	30,500
Prof. Dr. Martin Winterkorn	12,000	2,000	13,500		750	28,250
Total	271,000	45,162	304.880	9,000	36,000	666,042

1) The amounts presuppose that the General Meeting of Shareholders 2010 will approve the dividend proposal by the Executive and Supervisory Boards

In addition, the following Supervisory Board members received remuneration for Supervisory Board mandates of subsidiaries:

In €	Fixed remuneration	Performance-based remuneration for		Commitee remuneration	Attendance fees	Total
		annual perfor- mance¹⁾	long-term company performance
Manfred Bogen (EP)	3,100	–	–	–	–	3,100
Hasan Cakir (SZS)	10,000	–	–	–	400	10,400
(SZFG)	8,000	–	–	–	400	8,400
Karl Ehlerding (KWAG)	20,000	–	–	10,000	2,000	32,000
(KHS)	5,113	–	–	–	–	5,113
Ulrich Kimpel (HKM)	7,500	–	–	–	225	7,725
Udo Pfante (SMHD)	10,000	–	–	–	400	10,400
Christian Schwandt (SZST)	5,000	–	–	–	400	5,400
Dr. Werner Tegtmeier (MRW)	10,000	–	–	–	300	10,300
Dr. Hans-Jürgen Urban (SZS)	10,000	–	–	–	400	10,400
Helmut Weber (KWAG)	20,000	–	–	10,000	2,000	32,000
(KHS)	5,113	–	–	–	–	5,113
Total	113,826	0	0	20,000	7,025	140,851
Overall total	384,826	45,162	304,880	29,000	43,025	806,893

1) The amounts presuppose that the General Meeting of Shareholders 2010 will approve the dividend pro posal by the Executive and Supervisory Boards

Annual remuneration received by the individual Supervisory Board members in 2008:

In €	Fixed remuneration	Performance-based remuneration for		Commitee remuneration	Attendance fees	Total
		annual perfor- mance	long-term company performance
Rainer Thieme, Chairman	24,000	76,620	59,380	2,000	3,500	165,500
Jürgen Peters, Vice Chairman	18,000	57,460	44,540	1,000	2,000	123,000
Dr. Wilfried Lochte, until May 21, 2008, Honorary Chairman	5,000	15,963	12,370	–	500	33,833
Manfred Bogen, since May 21, 2008	8,000	25,543	19,790	–	750	54,083
Hasan Cakir	12,000	38,310	29,690	–	1,000	81,000
Ulrich Dickert, since May 21, 2008	8,000	25,543	19,790		750	54,083
Karl Ehlerding, since May 21, 2008	8,000	25,543	19,790	–	750	54,083
Hannelore Elze	12,000	38,310	29,690	1,000	1,500	82,500
Hermann Eppers, until May 21, 2008	5,000	15,963	12,370	–	500	33,833
Prof. Dr.-Ing. Heinz Haferkamp, until May 21, 2008	5,000	15,963	12,370	–	500	33,833
Dr. Lothar Hagebölling	12,000	38,310	29,690	1,000	2,750	83,750
Prof. Dr.-Ing. Dr. h.c. Jürgen Hessel bach, since May 21, 2008	8,000	25,543	19,790	–	750	54,083
Prof. Dr. Rudolf Hickel, until May 21, 2008	5,000	15,963	12,370	1,000	750	35,083
Dr. Dieter Köster, since May 21, 2008	8,000	25,543	19,790	–	750	54,083
Prof. Dr. Hans-Jürgen Krupp, until May 21, 2008	5,000	15,963	12,370	–	500	33,833
Dr. Arno Morenz	12,000	38,310	29,690	–	1,000	81,000
Udo Pfante	12,000	38,310	29,690	–	1,000	81,000
Prof. Dr. Hannes Rehm	12,000	38,310	29,690	2,000	2,000	84,000
Dr. Rudolf Rupprecht	12,000	38,310	29,690	–	750	80,750
Christian Schwandt	12,000	38,310	29,690	1,000	2,250	83,250
Michael Sommer, until May 21, 2008	5,000	15,963	12,370	–	–	33,333
Dr. Werner Tegtmeier, since May 21, 2008	8,000	25,543	19,790	–	750	54,083
Dr. Johannes Teyssen	12,000	38,310	29,690	–	750	80,750
Friedrich-Wilhelm Tölkes	12,000	38,310	29,690	1,000	750	81,750
Hartmut Tölle, until May 21, 2008	5,000	15,963	12,370	–	500	33,833
Dr. Hans-Jürgen Urban, since May 21, 2008	8,000	25,543	19,790	–	750	54,083
Helmut Weber, since May 21, 2008	8,000	25,543	19,790	1,000	1,250	55,583
Prof. Dr. Martin Winterkorn	12,000	38,310	29,690	–	750	80,750
Prof. Dr. Ulrich Zachert, until May 21, 2008	5,000	15,963	12,370	–	500	33,833
Total	278,000	887,538	687,790	11,000	30,250	1,894,578

In addition, the following Supervisory Board members received remuneration for Supervisory Board mandates of subsidiaries:

In €	Fixed remuneration	Performance-based remuneration for		Commitee remuneration	Attendance fees	Total
		annual perfor- mance	long-term company performance
Manfred Bogen (EP)	3,100	–	–	–	–	3,100
Hasan Cakir (SZS, SZFG)	18,000	–	–	–	800	18,800
Karl Ehlerding (KWAG)	20,000	–	–	10,000	1,500	31,500
(KHS)	5,113	–	–	-	-	5,113
Udo Pfante (SMHD)	10,000	–	–	–	400	10,400
Christian Schwandt (SZST)	5,000	–	–	–	400	5,400
Friedrich-Wilhelm Tölkes (MRW)	10,000	–	–	–	300	10,300
Helmut Weber (KWAG, KHS)	25,113	–	–	10,000	2,500	37,613
Total	96,326	0	0	20,000	5,900	122,226
Overall Total	374,326	887,538	687,790	31,000	36,150	2,016,804

deutsch |