Infineon’s Supervisory Board Extends Management Board Contracts
Neubiberg, Germany, February 17, 2011 – The Supervisory Board of Infineon Technologies AG has extended the contracts of incumbent Management Board members Peter Bauer and Dr. Reinhard Ploss. The contract periods correspond to the duration of the Management Board members’ terms. Chief Executive Officer Peter Bauer’s new contract will run until September 30, 2016, and the new contract with Dr. Reinhard Ploss until September 30, 2015.
With the extension, the contracts of Peter Bauer and Dr. Reinhard Ploss have been moved over to the new system of Management Board compensation, approved by Infineon’s Supervisory Board in November 2010. Under this system, members of the Management Board are to receive a target annual income comprising 45 percent fixed compensation from a basic annual salary not linked to performance, and 55 percent variable compensation based on performance. Their performance-based compensation consists of an annual bonus (a short-term incentive amounting to 20 percent of target annual income), a multiple year bonus (a medium-term incentive amounting to 20 percent), and a long-term variable compensation component (a long-term incentive amounting to 15 percent) based on the existing stock option plan. The short-term as well as the long-term incentive are limited to 250 percent of the respective target attainment, for the medium-term incentive a cap of 200 percent applies. The medium- and long-term components ensure that the Management Board compensation complies with the new requirements under stock corporation law for a multiple-year assessment basis.
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2010 fiscal year (ending September 30), the company reported sales of Euro 3.295 billion with approximately 26,650 employees worldwide. With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).