In 2006, Continental expanded its system of value-oriented compensation. Our value-oriented remuneration system was applied to approximately 1,300 lower-level executives worldwide, 700 of whom were in Germany. This system is now anchored throughout the management levels worldwide.

At the end of 2007, we began applying the value-oriented remuneration for Continental AG's executives to the employees of Siemens VDO as well. From fiscal 2008, the key financial figures of Continental AG will be introduced as the basis for calculating variable compensation for the executives of Siemens VDO. This will serve to ensure rapid harmonization of the control factors for this important incentive system for executives throughout the Corporation.

The variable component of the executive’s salary is based on a scale structure and increases in accordance with his or her position ranking. The bonuses are determined by three parameters: The value created year-on-year by the executive for his or her business unit, the return on capital employed and the attainment of individual goals.