46 Remuneration of the Board of Management and the Supervisory Board

The non-performance-related remuneration of the Board of Management comprises fixed remuneration and fringe benefits. In addition to the basic level of remuneration, the fixed remuneration also includes differing levels of remuneration for appointments assumed at Group companies. The fringe benefits result from the grant of noncash benefits and include in particular the use of operating assets such as company cars and the payment of insurance premiums. Taxes due on these noncash benefits were mainly borne by Volkswagen AG. The performance-related remuneration comprises a business performance bonus, which relates to business performance in the reporting period and in the preceding year, and, since 2010, a Long-Term Incentive (LTI) plan, which is based on the reporting period and the previous three fiscal years. Members of the Board of Management can also be awarded bonuses that reflect their individual performance.

On December 31, 2014, the pension provisions for members of the Board of Management amounted to €138,046,434 (previous year: €107,676,518). Current pensions are index-linked in accordance with the index-linking of the highest collectively agreed salary insofar as the application of section 16 of the Gesetz zur Verbesserung der betrieblichen Altersversorgung (BetrAVG – German Company Pension Act) does not lead to a larger increase. Members of the Board of Management with contracts entered into on or after January 1, 2010 are entitled to payment of their normal remuneration for six to twelve months in the event of illness. Contracts entered into before that date grant remuneration for six months. In the event of disability, they are entitled to the retirement pension. Surviving dependents receive a widow’s pension of 66 2/3% and a 20% orphan’s pension per child based on the pension of the former member of the Board of Management.

Retired members of the Board of Management and their surviving dependents received €22,792,616 (previous year: €9,977,972). This includes the amounts agreed to be paid to Dr. Macht in connection with his departure from the Board of Management as of July 31, 2014. For the period from August 1, 2014 to September 30, 2015, he was granted non-performance-related remuneration of €1,270,575 and performance-related remuneration of €5,976,716. The subsequent bridging allowance, less any remuneration from third parties, is that for the period after he reaches the age of 63. Provisions for pensions for this group of people were recognized in the amount of €165,668,945 (previous year: €140,165,675).

Interest-free advances in the total amount of €480,000 (previous year: €480,000) have been granted to members of the Board of Management. The advances will be set off against performance-related remuneration in the following year.

The individual remuneration of the members of the Board of Management and the Supervisory Board is explained in the remuneration report in the management report. A comprehensive assessment of the individual bonus components of the LTI is also to be found there.