396 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information II. Remuneration of the Members of the Board of Management 6. Retirement benefits The retirement benefits system provides for the Company to make annual contributions to a savings account for every year that members of the Board of Management are appointed in of- fice. Former members of the Board of Management are entitled to retirement benefits at the earliest upon reaching the age of 62 and after leaving the Board; pension entitlements become vested when the employment relationship has existed for one year. The payment is made as a lump sum or in annual instal- ments at the discretion of the member of the Board of Manage- ment.* This amount paid out is in turn based on the annual con- tributions and annual profit participation depending on the form of investment. There is a guaranteed minimum interest rate on the contributions made. Members of the Board of Management whose employment relationship ends due to invalidity receive an incapacity pension. If a member of the Board of Management entitled to benefits dies before the occurrence of the insured event, their surviving spouse or registered partner is entitled to a survivor’s benefit; otherwise, surviving children are entitled to a survivor’s benefit depending on their age and level of education. The amount of the benefits paid in the event of death or invalidity is determined on the basis of the amount accrued in each Board member’s individual pension savings account. Members of the Board of Management who retire immediately after their service on the Board, or who are deemed to be in an equivalent position, are entitled to use BMW Group vehicles. Pension entitlements 2024 in € Service cost in accordance with IFRS for the financial year 2024 Cash value of entitlements to pension benefits in accordance with IFRS as at 31 December 2024 Oliver Zipse 711,077 6,946,128 Jochen Goller 406,330 2,639,148 Ilka Horstmeier 406,415 3,493,888 Walter Mertl 407,218 1,341,528 Milan Nedeljković 406,340 4,031,624 Joachim Post 407,167 1,758,065 Frank Weber 406,360 2,465,547 Total 3,150,907 22,675,928 7. Malus and clawback provisions The remuneration system provides for the possibility of withhold- ing variable remuneration (malus) and reclaiming variable remu- neration already paid out (clawback) under certain conditions. The rules allow the Supervisory Board to withhold or reclaim var- iable remuneration in the event of certain serious compliance-re- lated violations (compliance malus and/or compliance claw- back). These provisions can also be applied where variable re- muneration components linked to the achievement of certain tar- gets have been paid out on the basis of incorrect calculation ba- ses or incorrect financial statements. Remuneration can also be withheld or reclaimed after an individual’s departure from the Board of Management. The Supervisory Board has not identified any reason to withhold or reclaim variable remuneration components in the 2024 finan- cial year. 8. Premature termination of activities and post-contractual non-competition clause Board of Management service contracts provide for severance pay to be paid to the Board member in the event of premature termination by the Company without due cause, the amount of which is limited to a maximum of two years’ remuneration (sev- erance payment cap). The member will not be compensated for more than the remaining term of the service contract. If the re- maining term of the contract is less than two years, the sever- ance payment is reduced proportionately. The annual remuner- ation paid generally includes the base salary, the target amount of the bonus and target amount of the personal cash investment amount, unless the relevant target amount was not achieved in the previous year. In this case, the bonus that was actually granted or the personal cash investment amount that was actu- ally disbursed is used as a basis. There are no specific severance arrangements covering early termination of a Board member’s mandate due to a change of control or in connection with a takeover offer. In the event of death or invalidity, special rules apply for waiving the holding period for shares of common stock that were ac- quired with share-based remuneration components. Where the service contract is terminated prematurely and the Company has a right of termination for cause or if the Board member resigns without the Company’s agreement, entitlements to matching components as yet unpaid are forfeited. Entitlements to other variable remuneration components (bonus, personal cash in- vestment amount) are forfeited as soon as they exceed the target amounts. A one-year post-contractual non-competition clause has been agreed with the Board members under specified circumstances against payment of a remuneration amount. Service contracts provide for the payment of a monthly waiting allowance in the amount of the applicable monthly base salary for the duration of the post-contractual non-competition clause. In accordance with Recommendation G.13 of the GCGC, any severance payment is offset against the waiting allowance. This also regularly applies to other income from third parties. The Company may unilaterally waive the requirement to comply with the post-contractual non- competition clause. * For commitments made prior to 2016, members may choose to receive their retirement benefits upon reaching the age of 60, to have them paid out as a pension, or to opt for hybrid forms.