40 » Related Party Disclosures
According to the definitions of IAS 24 ’Related Party Disclosures,’ the Supervisory Board and the Executive Board of adidas AG have been identified as related parties who receive compensation essentially in connection with their function as key management personnel. These consolidated financial statements contain detailed information about the compensation of the Supervisory Board and the Executive Board of adidas AG. SEE NOTE 41
In addition, a brand ambassador agreement existed during the financial year between adidas International, Inc. and the Supervisory Board member Jackie Joyner-Kersee. For her services under this agreement, Jackie Joyner-Kersee in 2022 received a fixed compensation of US $ 0.1 million (2021: US $ 0.1 million). As of the reporting date, there were no outstanding balances in this context.
Members of the Executive Board and Supervisory Board and their close family members are free to buy or sell shares of the Company on the market. The shares held by this group of persons are regularly entitled to dividends, so that the dividend, as resolved by the 2022 Annual General Meeting, was paid out per share held to these persons in 2022. The employee representatives on the Supervisory Board are also entitled to participate in the adidas AG employee stock purchase program. Shares are purchased at a discount of 15% on the same terms as for other employees. Participants who hold their self-acquired shares for at least one year will subsequently receive one share for every six shares held without additional payment, provided they are still adidas employees at that time. SEE NOTE 26
Members of the Executive Board and Supervisory Board may purchase products from the Company in the ordinary course of business.
In addition to their compensation for their Supervisory Board activities, the employee representatives on the Supervisory Board continued to receive salaries under their normal employment contracts. These were not influenced by their Supervisory Board activities.
A schedule of the adidas AG subsidiaries included in the consolidated financial statements is shown in Attachment I to the notes to the consolidated financial statements. Balances and transactions between the Company and its subsidiaries that are related parties have been eliminated in consolidation and are not presented in this note. SEE Shareholdings
In addition, adidas Pension Trust e.V., a registered association, is regarded as a related party. Based on a Contractual Trust Arrangement, adidas Pension Trust e.V. manages the plan assets in the form of an administrative trust to fund and protect part of the pension obligations of adidas AG. Employees, senior executives, and members of the Executive Board of adidas AG can be members of the registered association. adidas AG has the right to claim a refund of pension payments from adidas Pension Trust e.V. under specific contractually agreed conditions. As of December 31, 2022, adidas Pension Trust e. V. held plan assets of € 331.7 million (2021: € 355.1 million) in trust for adidas AG. In 2022, adidas AG made lease payments of € 6.3 million (2021: € 6.0 million) to adidas Pension Trust e.V. As of December 31, 2022, there were no outstanding liabilities to adidas Pension Trust e.V. (2021: € 0.1 million). There were outstanding receivables from adidas Pension Trust e.V. in the amount of € 0.1 million (2021: € 0). SEE NOTE 24