Management

Stock Appreciation Rights (SAR)

Since July 2006, Deutsche Post DHL has been offering SAR instead of stock options, but at similar conditions. Executives are granted the opportunity to benefit from a cash payment equalling the difference between the market price of Deutsche Post stock at the time of exercise and the defined grant price. The payment is based on the requirement of achieving pre-defined payment thresholds at the end of the vesting period. The SAR plan contains an independent payment threshold earnings per share and share price increase of Deutsche Post stock. Three out of six SAR granted are linked to the development of earnings per share and three out of six are linked to the development of the share price.

Hurdles to exercising SAR1)
3 SAR	3 SAR
Earnings per share (EPS) The "earnings per share" payment threshold has been achieved (in part), if the value of the financial year prior to the end of the vesting period exceeds the value of the financial year prior to granting the SAR by a percentage that has been defined at the time of granting the SAR.	Share price increase The "share price increase" payment threshold has been achieved (in part), if the average of the closing prices of Deutsche Post stock during the performance period exceeds the grant price by at least 10%, 15% or 20%.