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Top Executives
Changes in our market environment as well as our own Per-
formtoWin program also affect our top executives. We intend
to reduce the number of management positions by adjusting
our management structures to market realities. Enhancing
our focus on performance will require a substantial contribu-
tion from all executives. To assess their individual performance
with greater precision, we have expanded our use of key
performance indicators and increased the performance-based
component of variable compensation and long-term incen-
tive programs.
Compensation, Pension Plans, Employee
Participation
Attractive compensation and appealing fringe benefits are
essential to a competitive work environment. Company con-
tributions to employee pension plans represent an impor-
tant component of an employee's compensation package and
have long had a prominent place in the E.ON Group. They
are an important foundation of employees' future financial
security and also foster employee retention. E.ON companies
supplement their company pension plans with attractive
programs to help their employees save for the future. Another
factor in employee retention is enabling them to participate
in their company's success. Since 2007, Level 3 senior manag-
ers in Germany pursuant to our Group-wide job-grading sys-
tem have been included in the E.ON Share Performance Plan,
broadening access to the program beyond top executives.
Our employee stock purchase program became even more
attractive through an increase in the tax-free company con-
tribution. In 2009, 22,091 employees purchased a total of
925,282 shares of E.ON stock; 57 percent of employees partic-
ipated in the program, down slightly from 58 percent in 2008.
Overview of the Compensation Systems for the
Board of Management and Supervisory Board
We have compiled a Compensation Report for the 2009 finan-
cial year which provides an overview of the compensation
plans for the Board of Management and Supervisory Board
and each board member's E.ON Group compensation. The
report applies the regulations of the German Commercial
Code amended to reflect the Management Board Compensa-
tion Disclosure Law as well as the principles of the German
Corporate Governance Code. The Compensation Report, which
is part of this Combined Group Management Report, can be
found on pages 148155.
Apprentice Programs
E.ON has always placed great emphasis on apprentice pro-
grams. In 2009, apprentices accounted for about 7 percent
of the E.ON Group's workforce in Germany, almost unchanged
from the prior year. Established in 2003, the E.ON training
initiative to combat youth unemployment was continued in
2009. Beyond our regular apprenticeship programs, over
950 young people in Germany were offered prospects for the
future through vocational training, an internship to prepare
them for training, and school projects.
Research and Development ("R&D")
In 2009, E.ON further enhanced its R&D activities. We have
long taken a two-pronged approach to our wide range of
R&D activities.
First, we optimize our existing facilities and processes in
order to find innovative solutions for operational challenges
and to operate our facilities efficiently and economically
across their lifecycle.
Apprentices in Germany
Dec. 31, 2009
Central Europe 2,220
Pan-European Gas 221
E.ON AG/Other1 115
E.ON Group 2,556
1Includes E.ON IS.