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Annual Report 2011. Key Figures Daimler Group 2011 Amounts in millions of euros Revenue Western Europe thereof Germany NAFTA thereof United States Asia thereof China Other markets Employees (December 31) Investment in property, plant and equipment Research and development expenditure thereof capitalized Free cash flow of the industrial business EBIT Value added Net profit/loss Earnings/loss per share (in â‚ ¬) Total dividend Dividend per share (in â‚ ¬) 106,540 39,387 19,753 26,026 22,222 22,643 11,093 18,484 271,370 4,158 5,634 1,460 989 8,755 3,726 6,029 5. 2 2,346 2. 20 97,761 38,478 19,281 23,582 20,216 19,659 9,094 16,042 260,100 3,653 4,849 1,373 5,432 7,274 2,773 4,674 4. 28 1,971 1. 85 78,924 36,458 18,788 19,380 16,569 12,435 4,349 10,651 256,407 2,423 4,181 1,285 2,706 -1,513 -4,644 -2,644 -2. 63 0 0. 00 2010 2009 11/10 % change +91 +2 +2 +10 +10 +15 +22 +15 +4 +14 +16 +6 -82 +20 +34 +29 +24 +19 +19 1 Adjusted for the effects of currency translation, increase in reven ue of 10%. Divisions 011 Amounts in millions of euros Mercedes-Benz Cars EBIT Revenue Return on sales Investment in property, plant and equipment Research and development expenditure thereof capitalized Unit sales Employees (December 31) Daimler Trucks EBIT Revenue Return on sales Investment in property, plant and equipment Research and development expenditure thereof capitalized Unit sales Employees (December 31) Mercedes-Benz Vans EBIT Revenue Return on sales Investment in property, plant and equipment Research and development expenditure thereof capitalized Unit sales Employees (December 31) Daimler Buses EBIT Revenue Return on sales Investment in property, plant and equipment Research and development expenditure thereof capitalized Unit sales Employees (December 31) Daimler Financial Services EBIT Revenue New business Contract volume Investment in property, plant and equipment Employees (December 31) 1,312 12,080 33,521 71,730 21 7,065 162 4,418 3. 7% 103 225 32 39,741 17,495 83 5 9,179 9. 1% 109 358 126 264,193 14,889 1,876 28,751 6. 5% 1,201 1,321 251 425,756 77,295 5,192 57,410 9. 0% 2,724 3,733 1,051 1,381,416 99,091 2010 2009 11/10 % change 4,656 53,426 8. % 2,457 3,130 940 1,276,827 96,281 -500 41,318 -1. 2% 1,618 2,696 913 1,093,905 93,572 +12 +7 . +11 +19 +12 +8 +3 1,332 24,024 5. 5% 1,003 1,282 373 355,263 71,706 -1,001 18,360 -5. 5% 597 1,116 368 259,328 70,699 +41 +20 . +20 +3 -33 +20 +8 451 7,812 5. 8% 91 267 29 224,224 14,557 26 6,215 0. 4% 113 193 0 165,576 15,226 +85 +17 . +20 +34 +334 +18 +2 215 4,558 4. 7% 95 223 31 39,118 17,134 183 4,238 4. 3% 78 212 5 32,482 17,188 -25 -3 . +8 +1 +3 +2 +2 831 12,788 29,267 63,725 12 6,742 9 11,996 25,066 58,350 14 6,800 +58 -6 +15 +13 +75 +5 Daimler Marken Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial ServicesInnovation and Growth We invented the automobile – and now we are passionately shaping its future. As automotive pioneers, we see it as both motivation and a duty to continue our tradition with groundbreaking technologies and superior products. We do our very best for customers who expect the best, and we live and breathe a culture of operational excellence based on shared values. Our corporate history features numerous innovations and pioneering achievements; they are the foundation and ongoing inspiration for our claim to leadership in the auto ­ motive industry. At the same time, our thoughts and actions are guided by the principle of sustainable mobility.With tailored products, we intend to enter new markets and attract additional groups of customers. Our goal is to lead our industry in terms of unit sales, revenue and profitability – and to do so in all the businesses in which we are active. By means of profitable growth, we want to create lasting added value – for our shareholders, customers and employees, and for society in general. Dieter Zetsche Wolfgang Bernhard Christine Hohmann ­Dennhardt Wilfried Port h Andreas Renschler Bodo Uebber Thomas Weber Contents This Annual Report focuses on the innovative products and services with which we intend to utilize the growth opportunities offered worldwide while making a contribution to the mobility of the future.More details are provided inside, especially on pages 28-69. General information on Daimler and on the year 2011 can be found in the first section of the report. The Group’s financial position, liquidity and capital resources, and profitability are described and analyzed in the Management Report. Other sections provide information on our divisions, the topic of sustainability, corporate governance and the consolidated financial statements. 2 Annual Report 2011 | Contents 1 | To Our Shareholders (pages 4-27) 4 10 14 16 22 24 Important Events in 2011 Chairman’s Letter The Board of Management Report of the Supervisory Board The Supervisory Board Daimler Shares | Sustainability (pages 144-155) 146 148 152 154 Sustainability at Daimler Innovation, Safety and the Environment Human Resources Social Responsibility 6 | Corporate Governance (pages 156-175) 2 | Innovation and Growth (pages 28-69) 30 36 40 46 52 58 62 66 Innovation on a Grand Scale The New Compact Cars The Fascination of Electric Mobility What Will Move Us Tomorrow? Global Success Made by Daimler Customer Care Worldwide The Future Is Our Element The Avant-garde of Future Mobility 158 161 167 169 175 Report of the Audit Committee Remuneration Report Integrity and Compliance Corporate Governance Report Declaration of Compliance with the German Corporate Governance Code | Consolidated Financial Statements (pages 176-251) 178 179 Consolidated Statement of Income Consolidated Statement of Comprehensive Income/Loss Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Responsibility Statement Independent Auditors’ Report 3 | Management Report (pages 70-127) 72 86 98 105 108 111 112 113 121 Business and General Conditions Profitability Liquidity and Capital Resources Financial Position Daimler AG (Condensed version according to HGB) Overall Assessment of the Economic Situation Events after the End of the 2011 Financial Year Risk Report Outlook 180 181 182 183 250 251 | Additional Information (pages 252-256) 252 254 255 256 Ten Year Summary Glossary Index International Representative Offices Internet | Information | Addresses Daimler Worldwide Financial Calendar 2012 4 | The Divisions (pages 128-143) 130 134 138 140 142 Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 3 1 | To Our Shareholders | Important Events in 2011 Important Events Gottlieb Daimler and Carl Benz invented the automobile in 1886. The year 2011 was therefore marked by the commemoration of the 125th anniversary of the auto mobile, which started on January 29 with the official celebrations at the Mercedes-Benz Museum. They were followed by various public events, including several organized during the Automobile Summer in Stuttgart.Our employees enthusiastically celebrated the anniversary at numerous parties in the production plants and sales-and-service centers. Following in the footsteps of Gottlieb Daimler and Carl Benz, we will reinvent the automobile again and again, thus shaping the future of mobility. And in jubilee year 2011, we created the right conditions for sustainable and profitable growth with a burst of new models and some important strategic decisions. 2011 Q1. 11 25th anniversary of the automobile. On January 29, 1886, Carl Benz changed the world. He applied to the Berlin Patent Office to register his â€Å"vehicle with gas-engine propulsion† under patent number 37435.Daimler starts jubilee year 2011 with official celebrations under the heading â€Å"125! Years Inventor of the Automobile. † Daimler and Toray found a joint venture. Toray Indu stries, Inc. and Daimler plan to jointly produce and market automobile components made of carbon-fiber-reinforced plastics (CFRP). New C-Class coupe. The two-door has its world premiere at the Geneva Motor Show in early March 2011. It deliberately targets new customers as well as existing ones, and allows a particularly sporty entry into the coupe world of MercedesBenz. The new generation of the C-Class sedan and wagon and the new SLK roadster are also presented in Geneva. Presentation of the Concept A-CLASS in Shanghai.At Auto Shanghai in April, Mercedes-Benz presents the Concept A-CLASS to give an impression of the upcoming new compact class. The proportions of the Concept A-CLASS communicate concentrated dynamism. The car’s expressive lines and surfaces are a key feature of the new Mercedes-Benz design. Supervisory Board appoints Dr. Christine Hohmann-Dennhardt to the Board of Management. Dr. Hohmann-Dennhardt takes charge of the newly created Board of Management area of à ¢â‚¬Å"Integrity and Legal Affairs. † She is responsible for the Legal Department, the Compliance Organization and Corporate Data Protection. New truck brand for the Indian market. In India, Daimler Trucks presents BharatBenz, its fifth truck brand.BharatBenz is the basis for the launch of a new local truck generation, which is to be produced at the new plant in Chennai. Excellent first quarter of 2011. Daimler AG achieved earnings before interest and taxes (EBIT) of â‚ ¬2. 0 billion in the first quarter of the year (Q1 2010: â‚ ¬1. 2 billion). This very positive earnings development reflects the ongoing upward trend in nearly all divisions. 6 1 | To Our Shareholders | Important Events in 2011 Dividend of â‚ ¬1. 85 per share. At the Annual Meeting in Berlin, the Daimler shareholders vote to pay a dividend for the year 2010 of â‚ ¬1. 85 per share. The total dividend distribution thus amounts to approximately â‚ ¬2 billion. Daimler starts worldwide campaign:  "fairplay. Live values. Create value. This campaign directs the attention of employees and executives to the issues of integrity and compliance. The goal is to develop a shared understanding among all Daimler employees of which behavior is right and which is wrong, as well as to promote a corporate culture of trusting cooperation. F-CELL World Drive reaches Stuttgart. After traveling more than 30,000 kilometers around the globe, three MercedesBenz B-Class F-CELL cars with locally emission-free drive systems cross the finishing line in front of the Mercedes-Benz Museum in Stuttgart in due time. During the F-CELL World Drive, Mercedes-Benz impressively demonstrates the qualities of its fuel-cell vehicles with regard to performance and reliability.Presentation of new Actros. The heavy-duty Mercedes-Benz truck has been fundamentally redeveloped. The new Actros represents more than ten years of work, over 20 million test kilometers and more than â‚ ¬2 billion of investment in developm ent and production technology. Strategic framework agreement with Chinese partner. Daimler AG and Beijing Automotive Industry Corporation (BAIC) sign a strategic framework agreement. A total of approximately â‚ ¬2 billion is to be invested in the joint venture Beijing Benz Automotive Co. , Ltd. (BBAC). Record earnings in the second quarter. Daimler achieves one of its best ever quarterly results in the second quarter of 2011.Group EBIT amounts to â‚ ¬2. 6 billion. Q2. 11 7 Q3. 11 Joint venture between Daimler and Bosch. Daimler and Robert Bosch GmbH sign agreements on the establishment of a 50:50 joint venture for electric motors. The company will operate under the name of EM-motive GmbH and will develop and produce innovative electric motors for electric vehicles. Daimler Financial Services starts operations in India. The newly established subsidiary Daimler Financial Services India Pvt. Ltd. domiciled in Chennai offers customers and dealers a comprehensive range of financing and insurance products. Contract volume of more than US$500 million is targeted by the year 2016.Acquisition of Tognum successfully concluded. Daimler AG and Rolls-Royce Holdings plc secure approximately 99% of Tognum’s shares. The combination of the three companies’ strengths and market access will allow Tognum to become a first-class producer of engine systems. Numerous Mercedes-Benz world premieres at the Frankfurt Motor Show. The revolutionary F125! research car allows a glimpse of the emission-free luxury sedans of the not-too-distant future. There are also world premieres of the new B-Class, the Concept B-Class E-CELL PLUS and the SLS AMG roadster. In addition, Mercedes-Benz presents the new M-Class to the general public for the first time.Presentation of â€Å"Mercedes-Benz 2020† growth strategy. By the year 2020, we want to be the number one among the premium manufacturers – in terms of products, brand, profitability and unit sales. We will devel op the production capacities required for our growth so that they are close to our customers and our markets. First truck from Daimler and Kamaz. Daimler Trucks and Russian truck producer Kamaz present the prototype of a jointly developed truck with Daimler components. Daimler and Kamaz will intensify their collaboration in the future, especially on truck cabs. First new Citaro delivered. Trade experts see a great future for the completely revised best-selling Mercedes-Benz city bus.It sets benchmarks above all with its safety concept and its new design. Final approval for truck joint venture in China. The Chinese Ministry of Commerce grants final approval for Beijing Foton Daimler Automotive Co. , Ltd. (BFDA). Daimler will hold a 50% interest in the joint venture and can thus participate in the growth of the Chinese market for medium and heavy trucks. 8 1 | To Our Shareholders | Important Events in 2011 First Sprinter produced in China. In addition to the Vito and Viano models, whi ch have been successfully produced and sold in China since 2010, the Mercedes-Benz Sprinter is now also rolling off the assembly lines at Fujian Daimler Automotive Co. Ltd. The Sprinter is the first premium product in the Chinese market for large vans. Closer cooperation between Daimler and BAIC. Daimler and BAIC (Beijing Automotive Group Co. , Ltd. ) agree to extend their wide-ranging strategic partnership. The letter of intent states that both companies will assess further possibilities for technological collaboration and for vehicles with alternative drive systems. Daimler plans sale of EADS shares. Daimler and the German government have agreed in principle that the KfW Bank Group will acquire 7. 5% of the shares in EADS from Daimler. The transaction is to take place in 2012. 50,000 customers at car2go. ar2go, the world’s first fully flexible car-rental service to operate on a per-minute basis, passes the milestone of one million rentals. At the same time, the 50,000th car 2go customer worldwide is registered at the Hamburg car2go shop. New Actros is â€Å"Truck of the Year 2012. † Truck journalists from 24 European countries elect the new Actros, the flagship of the Mercedes-Benz fleet of commercial vehicles, as the best truck of the year. With a total of eight titles, Mercedes-Benz is now the most successful brand in the competition for honors for technological progress. Presentation of heavy-duty Fuso truck with hybrid drive. Fuso presents its first heavy-duty truck with hybrid drive at the Tokyo Motor Show: the Super Great HEV.The first test carried out under real-life conditions show that fuel consumption has been improved by up to 10% compared with conventional trucks with diesel engines. Q4. 11 9 25 years of the automobile and excellent financial results – 2011 stands for both at Daimler. And that pleases us all the more because we promised you a year ago that our jubilee year would be another successful year for your company. We kept our word with: – Group revenue of 106. 5 billion euros, – EBIT of 8. 8 billion euros, which is well above the prior year, – and net profit of 6. 0 billion euros. These aren’t just very respectable results; they are among the best in our history. Our return on net assets of 19. 9 percent was well above our target of eight percent. In short, we created value.And of course, our success will also benefit you: The Board of Management and the Supervisory Board will propose an increase in the dividend to â‚ ¬2. 20 per share at the Annual Meeting. Now what were the key developments in our divisions? At Mercedes-Benz Cars, we set three records in 2011. Never before have we had better unit sales, revenue or EBIT. This was chiefly accomplished on the strength of our Mercedes-Benz brand and its ongoing invigoration through innovative products. Whether the M- or B-Class, the C coupe or the SLS AMG roadster, our new models are all very popular. At the same time , in 2011 we defined our long-term growth strategy: â€Å"Mercedes-Benz 2020. At its center is the extension of our ambition to lead: With the strongest brand and the best products, we aim to be number one in premium-segment unit sales as well – by the end of this decade at the latest. To that end, we need to achieve sustainable, profitable growth and expand our activities close to our growing customer base. 2011 was also a very good year for Daimler Trucks. Worldwide, we were able to increase unit sales and revenue by 20 percent, and EBIT by more than 40 percent. In June, we introduced the new Mercedes-Benz Actros, our most important heavy-duty truck of this decade. It was promptly voted â€Å"Truck of the Year. † In North America, we further strengthened our market leadership in the medium- and heavy-duty segment.And with Fuso in Asia, we increased our unit sales despite the natural disaster in Japan. 10 1 | To Our Shareholders | Chairman’s Letter â€Å" The jubilee year of the automobile was another successful year for Daimler. But we believe we can do even better. † 11 Mercedes-Benz Vans posted unit sales growth of about 18 percent – thanks primarily to the success of the new-generation Vito and Viano. Both models are now available in China, where we also started production of the Sprinter. At Daimler Buses, revenue and earnings decreased due to weaker market demand for complete buses. However, we clearly maintained the leading position in all our key markets.Exceptionally good news also comes from Daimler Financial Services, where three new records were set in 2011: for new business, contract volume and earnings. In addition, we expanded our range of services with the new â€Å"Mobility Services† business unit. Here we are offering innovative service packages with a focus on sustainable mobility. All of this contributed to an excellent performance in 2011. It is all the more remarkable given that general economic risks increased in the second half of the year due to the crisis in the euro zone. In 2012, we will continue to face headwinds in our European markets. However, from today’s perspective, we expect worldwide economic growth of around 2. 5 percent. And global automotive demand is likely to grow even faster in the years ahead.We intend to participate in this growth – and to an above-average extent. 2011 was a successful and important year. But we believe we can do significantly better in the medium and long term; that also applies to our share price. We strive to attain leadership in all our businesses. In doing so, we draw on the strengths of the Daimler Group: – as a full-line supplier of premium cars, trucks, vans, buses and services; – with Mercedes-Benz as our core brand in all divisions; – and as an innovation and technology leader. The combination of these Daimler strengths produces potential that we intend to fully utilize in the coming years . Specifically, we have efined four strategic growth areas: – strengthening our core business in traditional markets, – conquering new growth markets, – extending our leadership in environmentally friendly technologies and in the field of safety, – and developing and implementing new mobility concepts. 12 1 | To Our Shareholders | Chairman’s Letter In all of this, one thing remains clear: A company’s success stands or falls with the skills and commitment of its workforce. The employees of your company are doing a great job; for that they deserve the thanks of the Board of Management. We will continue to systematically promote excellence in the future. One specific target is the development of first-class female and international talent. Integrity is another issue that is gaining importance – and not just at Daimler. What does that mean in a corporate context?In brief, it means that â€Å"make a decent return† and â€Å"make re turns decent† are two sides of the same coin. Integrity is more than just formal compliance with laws and regulations. It is an ethical attitude, a sort of â€Å"internal compass† that keeps us on the right path even in complex business situations. Many events of the past twelve months have confirmed once again that one of the most important â€Å"currencies† is trust – whether it’s in business or politics, in public or private life. Ultimately, Daimler owes its sustained success to its trusted relationships with customers, business partners, employees and neighbors – and of course with you, our shareholders.We would like to sincerely thank you for your confidence in us. We will make every effort in 2012 to justify that confidence once again. Sincerely, Dieter Zetsche 13 The Board of Management Andreas Renschler | 53 Daimler Trucks Appointed until September 2013 Wolfgang Bernhard | 51 Manufacturing and Procurement Mercedes-Benz Cars & Mercede s-Benz Vans Appointed until February 2013 Christine Hohmann-Dennhardt | 61 Integrity and Legal Affairs Appointed until February 2014 Bodo Uebber | 52 Finance & Controlling, Daimler Financial Services Appointed until December 2014 Thomas Weber | 57 Group Research & Mercedes-Benz Cars Development Appointed until December 2013Wilfried Porth | 53 Human Resources & Labor Relations Director Appointed until April 2017 Dieter Zetsche | 58 Chairman of the Board of Management, Head of Mercedes-Benz Cars Appointed until December 2013 14 15 Report of the Supervisory Board Dear Shareholders, the Supervisory Board dealt in detail with the operational and strategic development of the Daimler Group in seven meetings during the 2011 financial year. In the year 2011, the Supervisory Board performed its tasks as laid down by applicable law, the Articles of Incorporation and its rules of procedure, and continually advised and supervised the Board of Management with the management of the company.Followi ng careful reviews and consultations, the Supervisory Board passed resolutions on numerous business matters for which its consent was required, such as investment and personnel planning, capital changes at companies of the Group, investments and divestments, expansion of production capacities in existing cooperations, and the conclusion of contracts of particular importance for the Group. In addition, the Supervisory Board examined for example whether the risk report, the financial reporting and the annual financial statements were in conformance with requirements. The Board of Management also informed the Supervisory Board about a large number of transactions not requiring the Supervisory Board’s consent and the two boards discussed those matters together, for example, the further development of strategic programs in the various divisions and the status of various cooperation projects.The Supervisory Board discussed the information and evaluations that were material for its decisions and suggestions together with the Board of Management. The Supervisory Board meetings were regularly prepared in separate discussions of the members representing the employees and the members representing the shareholders with the members of the Board of Management. In each meeting of the Supervisory Board, there was a so-called executive session, in which the members of the Supervisory Board were able to discuss topics in the absence of the members of the Board of Management. No member of the Supervisory Board attended less than half of the meetings in the past financial year.The Chairman of the Supervisory Board was regularly informed by the Chairman of the Board of Management about all significant operating developments as well as personnel changes and appointments. Daimler’s business activities continued to develop very successfully during the year 2011. Unit sales and revenues increased in almost all the automotive divisions, in some cases substantially. Earnin gs from ongoing operations were significantly higher than in 2010. The Mercedes-Benz Cars and Mercedes-Benz Vans divisions achieved their targeted rates of return already in the first half of 2011. The good business development generally continued in the second half of the year, although earnings were adversely affected by model changes, higher material costs and exchange-rates movements.Daimler is currently making substantial investments, with support from the Supervisory Board, in new technologies, new markets and new products, in order to strengthen the Group’s competitive position for the future. A question of relevance for the work of the Supervisory Board throughout the year 2011 related to the possibility to plan further developments and their stability. The general economic outlook, and in particular the situation in the financial markets, was marked by significant risks and uncertainties. An additional factor in the first half of the year was the hardto-assess impact of the natural disaster in Japan. The Board of Management and the Supervisory Board also care-fully monitored the economic situation in China, one of the Group’s key markets.In the euro zone, the high levels of state and public-sector debt became increasingly important as factors causing uncertainty and restricting growth. In general, the Supervisory Board assessed the development during 2011 in absolute terms as positive, and in view of the risk described above, was in agreement with the risk-aware approach of the Board of Management. The Supervisory Board dealt in detail with the development of Daimler’s share price, and discussed at length with the Board of Management about its causes and proposals, as well as the expected impact on the share price of strategic projects. 16 1 | To Our Shareholders | Report of the Supervisory Board Dr. Manfred Bischoff, Chairman of the Supervisory Board.In addition to the usual key financial metrics, the Board of Management regularl y informed the Supervisory Board about important topics such as: – the Group’s profitability, especially in terms of return on equity, and its liquidity situation, – the internal control and risk management system including compliance, – the cost of risk in the financial services business, – the development of commodity prices, especially of raw materials, and – the general economic situation in the main sales markets, in particular in view of developments in the financial markets. The Supervisory Board also dealt with safeguarding the Group’s long-term profitability, fundamental questions of corporate planning including financial, investment, sales and human resources planning, developments in the companies of the Group, revenue developments and the situation of the Group, as well as the ongoing implementation of measures to secure pioneering and sustainable mobility for the future.The latter was dealt with also considering current a nd future requirements under the heading of â€Å"digital life,† with special reference to the Group’s products and services. The Supervisory Board was occupied with these topics going beyond the operating business in close communication with the Board of Management and especially intensively in a two-day strategy workshop, which this year focused in particular on conditions and development opportunities in China in order to properly reflect the special importance of the Chinese market. Cooperation between the Supervisory Board and the Board of Management. All the members of the Board of Management attended all the meetings of the Supervisory Board.In the meetings, there was an intensive and open exchange of opinions and information concerning the position of the Group, business and financial developments, fundamental issues of corporate policy and strategy, and development opportunities in important growth markets. Any deviations from the planning were explained in de tail to the Supervisory Board by the Board of Management. The members of the Supervisory Board regularly prepared for upcoming resolutions on transactions requiring Supervisory Board consent on the basis of documentation provided in advance by the Board of Management. They were supported by the relevant committees, and discussed the actions and transactions upon which decisions were to be taken with the Board of Management.Furthermore, the Board of Management informed the Supervisory Board with the use of monthly reports and quarterly risk reports about the most important performance figures and risks and submitted the interim reports to the Supervisory Board. The Supervisory Board was kept fully informed of specific matters also between its meetings. As required in individual cases, following consultation with the Chairman of the Supervisory Board, the members were requested to pass resolutions in writing. In addition, the Chairman of the Board of Management informed the Chairman o f the Supervisory Board in regular discussions about important developments and consulted with him on upcoming decisions. 17Topics discussed at the Supervisory Board meetings in the year 2011. In January 2011, the Supervisory Board dealt with equity-capital changes at subsidiaries of Daimler North America Corporation. In a meeting in February 2011, the Supervisory Board appointed Dr. Christine HohmannDennhardt, an ex-judge at Germany’s Federal Constitutional Court, as a member of the Board of Management for the position of Integrity and Legal Affairs, which had been newly created by a resolution of September 2010. As of December 16, 2011, Bodo Uebber was reappointed as a member of the Board of Management with responsibility for Finance & Controlling and Daimler Financial Services.In the presence of the external auditors, the preliminary key figures of the annual company and consolidated financial statements for 2010 and the dividend proposal to be made at the 2011 Annual Shar eholders’ Meeting were discussed in the same meeting. The preliminary key figures for the year 2010 were announced at the Annual Press Conference on February 16, 2011. In another meeting held in February 2011, the Supervisory Board dealt with the annual company financial statements, the annual consolidated financial statements and the combined management report for Daimler AG and the Daimler Group, each of which had been issued with an unqualified audit opinion by the external auditors, as well as the reports of the Audit Committee and the Supervisory Board, the corporate governance report and the remuneration report and the proposal on the distribution of distributable profit.In preparation, the members of the Supervisory Board were provided with comprehensive documentation, some of it in draft form, including the Annual Report with the consolidated financial statements according to IFRS, the combined management report for Daimler AG and the Daimler Group, the corporate gove rnance report and the remuneration report, the annual company financial statements of Daimler AG, the audit report of KPMG for the annual company financial statements of Daimler AG, for the consolidated financial statements and for the combined management report, the proposal of the Board of Management on the distribution of distributable profit, and the drafts of the reports of the Supervisory Board and of the Audit Committee. The Audit Committee and the Supervisory Board dealt with those documents in detail and discussed them intensively in the presence of the external auditors, who reported on the results of their audit and were available to answer supplementary questions and to provide additional information.Following the final results of the review by the Audit Committee and its own review, the Supervisory Board declared its agreement with the results of the audit by the external auditors, determined that no objections were to be raised, and approved the financial statements an d the combined management report as presented by the Board of Management. The company financial statements of Daimler AG for the year 2010 were thereby adopted. The Supervisory Board also consented to the proposal made by the Board of Management on the distribution of distributable profit and approved the report of the Supervisory Board, the corporate governance report and the remuneration report in the current drafts.Furthermore, the Supervisory Board approved its proposed decisions on the items of the agenda for the 2011 Annual Shareholders’ Meeting. In addition, the Supervisory Board received information on the status of antitrust investigations of European manufacturers of commercial vehicles by the EU Commission and approved an investment framework for the submission of a voluntary takeover bid for Tognum AG together with Rolls-Royce. Finally, the Supervisory Board dealt with topics of Board of Management remuneration and approved the external board positions and sidelin e business activities of the members of the Board of Management as presented in the meeting.Two Supervisory Board meetings were held in April. In the first of those two meetings, which was held straight after the Annual Shareholders’ Meeting, the Supervisory Board elected Dr. Manfred Bischoff as the Chairman of the Supervisory Board – as previously announced in the election proposal made at the Annual Shareholders’ Meeting. Pursuant to the rules of procedure of the Supervisory Board, its Chairman also chairs the Mediation, Nomination and Presidential Committees. To replace the departing Dr. Manfred Schneider, Dr. Jurgen Hambrecht was elected to the Mediation Committee and to the Presidential Committee. In the place of Dr. Manfred Schneider and Lynton R.Wilson, Dr. Paul Achleitner and Sari Baldauf were elected to the Nomination Committee. In addition, due to the resolution by the Annual Shareholders’ Meeting amending the Articles of Incorporation with rega rd to Supervisory Board remuneration, the Supervisory Board decided to amend the wording of the declaration of compliance accordingly, subject to the amended Articles of Incorporation being entered in the Commercial Register. In the declaration of compliance, the explanation of the lack of a performancerelated component of remuneration includes an explanation of the remuneration paid to the Supervisory Board of Daimler AG. With the amendment o the Articles of Incorporation, the existing apportioning model was replaced with an additive model, in order to better reflect the generally increased requirements in particular with consideration of additional activities of Supervisory Board members in committees. In the second meeting in April 2011, the Supervisory Board dealt with the course of business and results of the first quarter, as well as with a status report on the situation in Japan, which had been updated since previously being dealt with in March 2011, in particular the situati on of the Japanese companies of the Group and the local employees after the earthquake, tsunami and reactor accident. In addition, the Supervisory Board granted its consent to the closure of Treasury units in Belgium and to a capital increase for the car joint venture in China, Beijing Benz Automotive Co. , Ltd.In May, the Supervisory Board was informed about the stage of the Tognum transaction and the increase in the price offered. 18 1 | To Our Shareholders | Report of the Supervisory Board In addition to discussing the business development and results of the second quarter, in its meeting in July, the Supervisory Board granted its consent for capital contributions to the German pension plan, for the execution of equity-capital changes at the subsidiary Daimler Trucks North America, and for the expansion of production capacity for the truck joint venture with Foton, a Chinese truck producer. In the same meeting, the Supervisory Board also dealt with the new pension plan and the to pics for the upcoming strategy workshop.Furthermore, it reappointed Wilfried Porth as a member of the Board of Management with responsibility for Human Resources and as Labor Relations Director effective as of May 1, 2012. During the two-day strategy workshop in September, as every year, the Supervisory Board first of all received information on the stage of implementation of the strategic goals set in previous years by the Board of Management for Daimler AG and the divisions. Against the backdrop of the current economic situation, the Supervisory Board discussed the stage of implementation of projects initiated by the individual divisions, the positioning of the Group and its divisions with regard to the competition, and the brand and product strategies.Other key areas of the strategy workshops were: – growth opportunities in the various markets with a focus on China, – analyses of competitors, – status reports on the various cooperations, – the latest t rends in customer behavior, also with regard to the future development of urban mobility and the use of modern media and social networks, – the overall technology and market strategy for safeguarding sustainable mobility, – the technological development of internal-combustion engines, – electric, hybrid and hydrogen drive systems, – specific requirements placed on such drive systems in important markets, in China for example, – management capacities and other human resources issues, especially in specific growth markets, and – other strategic topics. In December, the Supervisory Board dealt in detail on the basis of comprehensive documentation with the operational planning for the years 2012 and 2013. This included discussion of existing opportunities and risks and the Group’s risk management. The Supervisory Board also decided on the financing limits for the year 2012 and dealt with a progress report on EADS and the planned sale of 7 . 5% of the shares in EADS to the KfW banking group.Other matters discussed in the December meeting included corporate governance and Board of Management remuneration. Corporate governance. Although the German Corporate Governance Code was not amended in the period under review, the Supervisory Board was continually occupied with the standards of good corporate governance, including the green paper of the European Commission on that subject. An important precondition for effective cooperation in the Supervisory Board in the sense of good corporate governance, in addition to the members’ prioritized specialist expertise, is their diversity to adequately reflect the Group’s size and internationality in terms of nationality, gender, ethnic origin and experience.In connection with future proposals on candidates for election to the Supervisory Board, the Supervisory Board of Daimler AG pays attention to internationality and balance, especially with regard to gender, and see s this as a contribution to strengthening Daimler’s claim to leadership in the automotive industry. With the election of Petraea Heynike, the Supervisory Board has achieved a proportion of 20% female members representing the shareholders, which is at least to be maintained and if possible increased in the coming years. The members of the Supervisory Board of Daimler AG are obliged to disclose potential conflicts of interest to the entire Supervisory Board and not to participate in discussing or voting on topics which could lead to a conflict of interest. There were no indications of any such potential conflicts of interest in 2011.In its meeting in April, the Supervisory Board decided on an amendment to its rules of procedure. The Code’s suggestion that the maximum possible appointment period of five years should not be the rule with first-time appointments to the Board of Management will be complied with in the future: First-time appointments – and only those à ¢â‚¬â€œ will generally be made for three years only. In its December meeting, the Supervisory Board updated and amended the wording of the rules of procedure of the Supervisory Board and its committees, and approved the declaration of compliance with the German Corporate Governance Code pursuant to Section 161 of the German Stock Corporation Act (AktG).With the two exceptions explained in the declaration, all the recommendations of the Code have been complied with and continue to be complied with. 19 The Supervisory Board last arranged for an externally moderated efficiency review to be carried out during the year 2010, thus fulfilling the requirement to carry out a regular review of its efficiency in accordance with its own rules of procedure and the German Corporate Governance Code. The results of the efficiency review indicate very good cooperation within the Supervisory Board and with the Board of Management. There was no indication of any need for fundamental action or changes. However, some suggestions were made, which will be put into practice.Corporate governance at Daimler is described in detail in the Corporate Governance Report on pages 169 ff and in the Remuneration Report on pages 161 ff of this Annual Report. Personnel changes in the Supervisory Board. After the end of the Annual Shareholders’ Meeting held on April 13, 2011, a member representing the shareholders, Dr. Manfred Schneider, stepped down from the Supervisory Board of Daimler AG. As proposed by the Supervisory Board, Petraea Heynike was newly elected as a member of the Supervisory Board repre ­ senting the shareholders with effect as of the end of that Annual Shareholders’ Meeting. Dr. Manfred Bischoff and Lynton R. Wilson, whose periods of office also ended at the end of the Annual Shareholders’ Meeting, were reelected.The election proposal of the Supervisory Board to the Annual Shareholders’ Meeting was based on a recommendation made by the Nomination Co mmittee and a corresponding resolution by the members of the Supervisory Board representing the shareholders. Personnel changes in the Board of Management. In a meeting in February 2011, as mentioned above, the Super ­ visory Board appointed Dr. Christine Hohmann ­Dennhardt, an ex ­judge at the German Federal Constitutional Court, as a member of the Board of Management for the position of Integrity and Legal Affairs, which was newly created by resolution of September 2010, for a period of three years as of February 16, 2011. Bodo Uebber was reappointed as a member of the Board of Management responsible for Finance & Controlling and Daimler Financial Services for a further three years as of December 16, 2011.In the Supervisory Board meeting in July 2011, in line with the new regulation on periods of service for reappointments, Wilfried Porth was reappointed for another five years as a member of the Board of Management responsible for Human Resources and as Labor Relations Direc tor as of May 1, 2012. Audit of the 2011 financial statements. The financial state ­ ments of Daimler AG and the combined management report for the Company and the Group for 2011 were duly audited by KPMG AG, Wirtschaftsprufungsgesellschaft, Berlin, and were given an unqualified audit opinion. The same applies to the consolidated financial statements for 2011 prepared accord ­ ing to IFRS, which were supplemented with additional notes.In the presence of the auditors in a meeting in early February 2012, the Supervisory Board discussed the preliminary key figures of the annual company and consolidated financial statements for 2011 and the dividend proposal to be made at the 2012 Annual Shareholders’ Meeting. The preliminary key figures for the year 2011 were announced at the Annual Press Conference on February 9, 2012. In another meeting in late February 2012, the Supervisory Board dealt with the annual company financial statements, the annual consolidated financial stateme nts and the combined management report for Daimler AG and the Daimler Group, each of which had been issued with an unqualified audit opinion by the external auditors, as well as the reports of the Audit Committee and the Supervisory Board, the corporate Report on the work of the committees The Presidential Committee convened four times in 2011.It dealt primarily with corporate governance topics and ques ­ tions of remuneration, as well as personnel matters of the Board of Management. As in previous years, compliance targets constituted part of the individual target agreements of the members of the Board of Management. The Audit Committee met seven times in 2011. Details of those meetings are provided in a separate report of this committee (see page 158 ff). The Nomination Committee convened twice in 2011. Among other matters, it prepared a recommendation for the Supervisory Board’s proposal on a candidate for election to the Supervisory Board of Daimler AG representing the share ­ holders.The proposal gave due consideration to stipulations regarding the structure, orientation and qualification profile of the members of the Supervisory Board representing the shareholders and to corporate governance requirements. As in previous years, the Mediation Committee, a body required by the provisions of the German Codetermination Act (MitbestG), had no occasion to take any action in 2011. The chairmen of the committees informed the members of the Supervisory Board about the activities of the committees and their decisions, in each case in the Supervisory Board meeting following such decisions. 20 1 | To Our Shareholders | Report of the Supervisory Board governance report and the remuneration report, and the proposal on the distribution of distributable profit.In preparation, the members of the Supervisory Board were provided with comprehensive documentation, some of it in draft form, including the Annual Report with the consolidated financial statements accor ding to IFRS, the combined management report for Daimler AG and the Daimler Group, the corporate governance report and the remuneration report, the annual company financial statements of Daimler AG, the audit report of KPMG for the annual company financial statements of Daimler AG, for the consolidated financial statements and for the combined management report, the proposal of the Board of Management on the distribution of distributable profit, and the drafts of the reports of the Supervisory Board and of the Audit Committee. The Audit Committee and the Supervisory Board dealt with those documents in detail and discussed them intensively in the presence of the external auditors, who reported on the results of their audit and were available to answer supplementary questions and to provide additional information.Following the final results of the review by the Audit Committee and its own review, the Supervisory Board declared its agreement with the results of the audit by the externa l auditors, determined that no objections were to be raised, and approved the financial statements and the combined management report as presented by the Board of Management. The company financial statements of Daimler AG for the year 2011 were thereby adopted. The Supervisory Board also consented to the proposal made by the Board of Management on the distribution of distributable profit and approved the report of the Supervisory Board, the corporate governance report and the remuneration report in their current drafts.Furthermore, the Supervisory Board approved its proposed decisions on the items of the agenda for the 2012 Annual Shareholders’ Meeting. Appreciation. The Supervisory Board thanks all of the employees and the management of the Daimler Group for their personal contributions to the successful year 2011. Special thanks are due to a longstanding member of the Supervisory Board, Dr. Manfred Schneider, who stepped down in April after many years of close involvement a nd exceptional personal commitment to the Group. Stuttgart, February 2012 The Supervisory Board Dr. Manfred Bischoff Chairman 21 The Supervisory Board Dr. Manfred Bischoff Munich Chairman of the Supervisory Board of Daimler AG Other supervisory board memberships/directorships: Fraport AG Royal KPN N. V.SMS GmbH – Chairman UniCredit S. p. A. Voith GmbH – Chairman Erich Klemm* Sindelfingen Chairman of the General Works Council, Daimler Group and Daimler AG; Deputy Chairman of the Supervisory Board of Daimler AG Dr. Paul Achleitner Munich Member of the Board of Management of Allianz SE Other supervisory board memberships/directorships: Bayer AG RWE AG Allianz Investment Management SE – Chairman Allianz Global Investors AG Sari Baldauf Helsinki Former Executive Vice President and General Manager of the Networks Business Group of Nokia Corporation Other supervisory board memberships/directorships: Hewlett-Packard Company F-Secure Corporation Fortum OYj – Chair woman Dr.Clemens Borsig Frankfurt am Main Chairman of the Supervisory Board of Deutsche Bank AG Other supervisory board memberships/directorships: Linde AG Bayer AG Emerson Electric Co. Prof. Dr. Heinrich Flegel* Stuttgart Director Research Materials, Lightweight Design and Manufacturing, Daimler AG; Chairman of the Management Representative Committee, Daimler Group Dr. Jurgen Hambrecht Ludwigshafen Former Chairman of the Board of Executive Directors of BASF SE Other supervisory board memberships/directorships: Deutsche Lufthansa AG Fuchs Petrolub AG – Chairman Trumpf GmbH + Co. KG Petraea Heynike Vevey Former Executive Vice President of the Executive Board of Nestle S. A. since April 13, 2011) Other supervisory board memberships/directorships: Schulich School of Business Jorg Hofmann* Stuttgart German Metalworkers’ Union (IG Metall), District Manager, Baden-Wurttemberg Other supervisory board memberships/directorships: Robert Bosch GmbH Heidelberger Druckmaschinen AG Dr. Thomas Klebe* Frankfurt am Main General Counsel of the German Metalworkers’ Union (IG Metall) Other supervisory board memberships/directorships: Daimler Luft- und Raumfahrt Holding AG ThyssenKrupp Materials International GmbH Gerard Kleisterlee Amsterdam Former President and CEO of Royal Philips Electronics N. V. Other supervisory board memberships/directorships: Vodafone Group Plc. – Chairman De Nederlandsche Bank N. V. Royal Dutch Shell Plc. Dell Inc.Jurgen Langer* Frankfurt am Main Chairman of the Works Council of the Frankfurt/Offenbach Dealership, Daimler AG 22 1 | To Our Shareholders | The Supervisory Board Ansgar Osseforth* Sindelfingen Manager Mercedes-Benz Research and Development; Member of the Works Council, Sindelfingen Plant, Daimler AG until November 30, 2011 Valter Sanches* Sao Paulo Secretary of International Relations of Confederacao Nacional dos Metalurgicos/CUT Stefan Schwaab* Gaggenau Vice Chairman of the General Works Council, Daimler Group and Daimler AG; Vice Chairman of the Works Council, Gaggenau Plant, Daimler AG Jorg Spies* Stuttgart Chairman of the Works Council, Headquarters, Daimler AG Lloyd G.Trotter Plainville Former Vice Chairman General Electric; President & CEO of the General Electric Group’s Industrial Division; Managing Partner, Founder, GenNx360 Capital Partners Other supervisory board memberships/directorships: PepsiCo Inc. Textron Inc. syncreon Holdings Ltd. syncreon. US Holdings Inc. syncreon. US Inc. Dr. h. c. Bernhard Walter Frankfurt am Main Former Spokesman of the Board of Management of Dresdner Bank AG Other supervisory board memberships/directorships: Bilfinger Berger SE – Chairman Deutsche Telekom AG Henkel AG & Co. KGaA Uwe Werner* Bremen Chairman of the Works Council, Bremen Plant, Daimler AG Lynton R. Wilson Toronto Chairman of the Board of CAE Inc. ; Chancellor of McMaster University Retired from the Supervisory Board: Dr. Manfred Schneider Leverkusen Chairman of the Supervisor y Board of Bayer AG (retired on April 13, 2011)Committees of the Supervisory Board: Committee pursuant to Section 27 Subsection 3 of the German Codetermination Act (MitbestG) Dr. Manfred Bischoff – Chairman Erich Klemm* Dr. Jurgen Hambrecht Dr. Thomas Klebe* Presidential Committee Dr. Manfred Bischoff – Chairman Erich Klemm* Dr. Jurgen Hambrecht Dr. Thomas Klebe* Audit Committee Dr. h. c. Bernhard Walter – Chairman Erich Klemm* Dr. Clemens Borsig Stefan Schwaab* Nomination Committee Dr. Manfred Bischoff – Chairman Dr. Paul Achleitner Sari Baldauf * Representative of the employees 23 Daimler Shares The spread of the sovereign-debt crisis and growing uncertainty about ongoing economic developments caused high volatility in the capital markets. Daimler’s share price fell significantly during the year 2011.In view of a repeated increase in net profit, the Board of Management and the Supervisory Board propose a higher dividend of â‚ ¬2. 20 per share (prior year: â‚ ¬1. 85). 1. 01 Development of Daimler’s share price and major indices End of 2011 End of 2010 11/10 % change -33 -15 -17 +6 -17 -24 Daimler’s share price (in euros) DAX 30 Dow Jones Euro STOXX 50 Dow Jones Industrial Average Nikkei Dow Jones STOXX Auto Index 33. 92 5,898 2,317 12,218 8,455 259 50. 73 6,914 2,793 11,578 10,229 341 Turbulent year on global stock markets. Stock markets continued their very volatile and disparate development in 2011. Against the backdrop of positive economic developments and encouraging company results, the upward trend of the previous year at first continued at the beginning of 2011.A number of negative factors such as the worsening debt crisis in the euro zone, the violent conflicts in North Africa and the Middle East, the natural disaster in Japan and growing fears of inflation then led to sharp falls in share prices in March. However, following good quarterly results of companies in Europe and the United States, stoc k markets recovered quickly and reached their peaks for the year in May. After moving sideways for several months, share prices generally declined at the beginning of August due to the weaker economic outlook. The exacerbating financial crisis in Europe and the downgrading of the United States’ creditworthiness raised market fears of a renewed recession during the autumn.As a result, the markets remained very volatile. The index of the most important stocks in the euro zone, the Dow Jones Euro STOXX 50, fell significantly, especially in the second half of 2011, and lost 17% over the full year. Germany’s main index, the DAX, lost 15%. In the United States, the Dow Jones climbed by 6% over the year. The Nikkei index in Japan closed 2011 down 17% compared with a year earlier. Volatile development of Daimler’s share price in 2011. Automotive stocks made a positive start to the year 2011. Our share profited at the beginning of the year from good unit sales in Decembe r and the encouraging data from the US truck market.Daimler’s share price peaked for the year at â‚ ¬58. 46 on January 18. This was followed by a phase of consolidation. Growing uncertainty had a disproportionately strong impact on the price of cyclical stocks such as Daimler’s. Nonetheless, our share price remained at the level it had reached at the end of 2010 until the end of July, despite negative factors such as the debt crisis in Europe, the natural disaster in Japan and the conflicts in North Africa and the Middle East. Share prices then fell significantly in August. This phase saw strong selling but only a weak propensity to buy. In that trading environment, economically sensitive automotive stocks suffered sharp losses.Although good unit sales were reported during the summer break, investors – especially in the United States – remained very risk averse and reduced the proportion of what they regarded as risky 1. 02 In euros Net profit Key figu res per share 2011 2010 11/10 % change +24 +24 +19 +9 -33 +7 -4 5. 32 5. 31 2. 20 38. 77 33. 92 58. 46 29. 16 4. 28 4. 28 1. 85 35. 62 50. 73 54. 87 30. 35 Net profit (diluted) Dividend Equity (December 31) Xetra share price at year end 1 Highest 1 Lowest 1 1 Closing prices 24 1 | To Our Shareholders | Daimler Shares European stocks in their portfolios. But, benefiting from the positive development of the German stock market and the publication of good third-quarter results in line with market expectations, Daimler’s share price climbed again significantly in October within a very volatile environment.The repeated increase in uncertainty about a resolution of the euro crisis caused the stock markets and automotive stocks to fall again temporarily in November. During this phase, the price of Daimler’s shares reached its low for the year of â‚ ¬29. 16 on November 23. After a brief recovery, our share price remained flat in December and closed the year at a price of â ‚ ¬33. 92 on December 30. ? 1. 01 Our share thus fell by 33% over the full year, which is a weaker performance than the Dow Jones STOXX Auto Index (-24%) and the DAX (-15%). Daimler’s market capitalization at the end of 2011 was â‚ ¬36. 2 billion. In the first several weeks of the year 2012, Daimler’s share price climbed significantly. Dividend of â‚ ¬2. 20. ? 1. 2 The Board of Management and the Supervisory Board will propose to the Annual Shareholders’ Meeting to be held on April 4, 2012 that in view of the good business development the dividend should be increased from â‚ ¬1. 85 to â‚ ¬2. 20 per share. The total dividend payout will thus amount to â‚ ¬2,346 million (prior year: â‚ ¬1,971 million). Broad shareholder structure. ? 1. 07 Daimler continues to have a broad shareholder base of approximately 1. 0 million shareholders. The number of shareholders remained stable compared with 2010, so there was no continuation of the trend of fallin g shareholder numbers that occurred in previous years. There was a steadily growing demand for our shares from private investors during the second half of 2011, mainly in Germany. Kuwait Investment Authority holds 6. 9% of Daimler’s shares and the Renault-Nissan Alliance holds 3. 1%.Aabar Investments PJS, Abu Dhabi (Aabar), notified us in October 2011 that its Daimler voting rights had fallen below the notification threshold of 5% and amounted to 4. 99998% at that time. This was caused by a slight increase in Daimler’s share capital due to the exercise of stock options. In February 2012, Aabar notified us that the number of Daimler shares it physically owned had decreased to approximately 32. 7 million, equivalent to a shareholding of 3. 07%. In connection with the respective shareholding notifications, Aabar also informed us that it has the right to redelivery of the difference between the approximately 32. 7 million shares it physically owns and the 96. 4 million sha res it originally acquired. In connection with its shareholding, Aabar entered into a series of financing transactions.As of 1 February 2012, the new rules pursuant to the German Securities Trading Act (WpHG) require separate incremental disclosures of certain elements of these transactions, which lead to double-counting with respect to parts of Aabar’s total shareholding. Together with shares lent to third parties in connection with financing transactions for which Aabar has a right of redelivery, Aabar still holds 9. 04%. BlackRock Inc. , New York, informed us in August 2011 that it had exceeded the 5% notification threshold as defined by Germany’s Securities Trading Act (WpHG) and that its Daimler voting rights amounted to 5. 7% as of August 11, 2011. Capital Research and Management Company of Los Angeles, which notified us in May 2010 that it held 3. 1% of our shares, is still above the 3% notification threshold stipulated by the WpHG.The treasury shares held by Da imler at the end of 2010 (approximately 0. 2 million shares worth about â‚ ¬7 million) were used during the year under review to satisfy the claims of former AEG shareholders from arbitration proceedings. In total, institutional investors hold 67% of our share capital and private investors hold 20%. Approximately 69% of our equity are in the hands of European investors and approximately 19% are held by US investors. ? 1. 08 1. 03 In euros 65 60 55 50 45 40 35 30 25 20 Daimler share price (high/low), 2011 1/11 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1. 04 140 130 120 110 100 90 80 70 60 50 Share price index 2/31/10 2/28/11 4/29/11 6/30/11 8/31/11 10/31/11 12/31/11 Daimler AG Dow Jones STOXX Auto Index DAX 25 1. 05 Key figures End of 2011 End of 2010 11/10 % change Share capital (in millions of euros) Number of shares (in millions) thereof treasury shares Market capitalization (in billions) )of euros) Number of shareholders (in millions) Weighting in share index D AX 30 Dow Jones Euro STOXX 50 Long-term credit ratings Standard & Poor’s Moody’s Fitch DBRS 3,060 1,066. 3 0 36. 2 1. 0 3,058 1,065. 6 0. 2 54. 0 1. 0 +0 +0 -100 -33 0 The weighting of Daimler shares in major indices decreased during 2011 due to the negative development of our share price.In the German DAX 30 index, our stock was ranked in seventh position with a weighting of 5. 93% at the end of the year (end of 2010: 7. 51%). ? 1. 05 In the Dow Jones Euro STOXX 50, Daimler shares were represented with a weighting of 2. 26% (end of 2010: 2. 88%). Daimler shares are listed in Frankfurt and Stuttgart. Stock-exchange trading in Germany in the year 2011 amounted to 1,728 million shares (2010: 1,492 million). In addition, Daimler shares are increasingly traded on multilateral trading platforms and in the over-thecounter market. Substantially increased participation in employee share program. In March 2011, eligible members of the workforce were once again able to acquire e mployee shares.A price incentive that was granted for the first time and bonus shares helped to increase the number of participants to 32,200 employees, who acquired a total of 610,300 shares (2010: 19,400 employees acquired 350,700 shares). Annual Shareholders’ Meeting approves management’s proposals with large majorities. Our Annual Shareholders’ Meeting held on April 13, 2011 at the Berlin International Congress Center (ICC) was attended by approximately 5,100 shareholders (2010: 4,700). With 43. 3% of the share capital represented at the Annual Meeting, shareholder representation (attendance plus absentee votes) was higher than in the prior year (40. 3%). In the voting on the items of the agenda, the shareholders adopted the recommendations of the management with large majorities.The shareholders

Rawls Theory of Justice Essay

A contemporary philosopher, John Rawls (1921-2002), is noted for his contributions to political and moral philosophy. In particular, Rawls’ discussion about justice introduced five important concepts into discourse, including: the two principles of justice, the â€Å"original position† and â€Å"veil of ignorance†. Rawls most famous work is, A Theory of Justice (1971) gives an introduction to this body of thought and he emphasises the importance justice has on governing and organising a society. The problem arises by defining what the term means theoretically. One of two definitions can be used, the first being definition based on ones merit or lack thereof. This â€Å"merit theory† of justice uses merit to decide how an individual of the society will be treated based on the contribution to the society. The other is the â€Å"need theory† of justice where is it assumed every individual should help those in need or who are less privileged. Attempting to balance the demands posed by these rival theories, Rawls maintained that inequalities in society can only be justified if they produce increased benefits for the entire society and only if those previously the most disadvantaged members of society are no worse off as a result of any inequality. An inequality, then, is justified if it contributes to social utility, as the merit theory asserts. But, at the same time, Rawls argued, priority must be given to the needs of the least advantaged, as the needs theory asserts. Thus, differential rewards are allowed to the advantaged members of society but not because of any merit on their part. No, these rewards are tolerated because they provide an incentive for the advantaged which ultimately will prove beneficial to society (e. g. , taxing the advantaged with the goal of redistributing the wealth to provide for the least advantaged). Original Stand Using â€Å"the original position† and experimental thought where agents behind â€Å"veil of ignorance† choose principles to govern society. Rawls argued that two principles serve to organize society, the â€Å"liberty principle† and the â€Å"difference principle. † He rooted the original position in and extended the concept of â€Å"social contract† previously espoused by Hobbes, Rousseau, and Locke which made the principles of justice the object of the contract binding members of society together. In addition, Rawls’ advocacy of treating people only as ends and never as means rooted his philosophical speculations in and extended Kant’s categorical imperative. According to Rawls a society is a venture between free and equal members for the purpose of mutual advantage. Cooperation among members makes life better because cooperation increases the stock of what it is rational for members of society to desire irrespective of whatever else its members may want. Rawls calls these desires â€Å"primary goods† which include among others: health, rights, income, and the social bases of self-respect. Rawls noted that there would be disagreement when deciding how the burden would be shared amongst the people. Rawls responded to this challenge by invoking the original position, in which representative members of a society would determine the answers to these difficult questions. That is, absent any government, the representatives would rationally discuss what sort of government will be supported by a social contract which will achieve justice among all members of society. The purpose for this discourse would not be to justify governmental authority but to identify the basic principles that would govern society when government is established. The chief task of these representatives would not be to protect individual rights but to promote the welfare of society (1971, p. 199). To this end, the representatives do not know—are â€Å"veiled† from—which place in society they will occupy. In addition, every factor which might bias a decision (e. g. , one’s tastes, preferences, talents, handicaps, conception of the good) is kept from the representatives. They do, however, possess knowledge of those factors which will not bias one’s decision (e. g. , social knowledge, scientific knowledge, knowledge identifying what human beings need to live). From this original position and shrouded by a veil of ignorance about their place in society, Rawls argued the representatives ultimately would select the principle of justice rather than other principles (e. g. , axiological virtues, natural law, utilitarian principles) to organize and govern society. While individual members of society oftentimes do act in their self-interest, this does not mean that they cannot be rational about their self-interests. Rawls argued that this is precisely what would occur in the original position when the representatives operated from behind the veil of ignorance. Freed from focusing upon one’s self-interest to the exclusion of others’ self-interests, the society which the representatives would design determines what will happen to its members and how important social matters like education, health care, welfare, and job opportunities will be distributed throughout society. The idea is that the representatives operating from behind the veil of ignorance would design a society that is fair for all of its members because no individual member would be willing to risk ending up in an intolerable position that one had created for others but had no intention of being in oneself. Rawls claimed that the representatives to the original position would invoke the principle of rational choice, the so-called â€Å"maximin decision rule. † This rule states that an agent, when confronted with a choice between alternative states of the world with each state containing a range of possible outcomes, would choose the state of affairs where the worst outcome is that state of affairs which is better than the worst outcome presented by any other alternative. Rawls’ example of two persons sharing a piece of cake demonstrates how the maximin decision rule works in actual practice. Suppose there is one piece of cake that two persons want to eat. They equally desire to eat the cake and each wants the biggest piece possible. To deal with this dilemma, both agree that one will cut the cake while the other will choose one of the two pieces. The consensus derived guarantees that the cake will be shared fairly, equating â€Å"justice† with â€Å"fairness. † Two Principles of Justice The first is the liberty principle that states that each member of society has an equal right to the most extensive scheme of equal basic liberties compatible with a similar system of equal liberty for all. Accordingly, each member of society should receive an equal guarantee to as many different liberties? and as much of those liberties? as can be guaranteed to every member of society. The liberties Rawls discussed include: political liberty (the right to vote and to be eligible for public office); freedom of speech and assembly; liberty of conscience and freedom of thought; freedom of the person along with the right to hold personal property; and, freedom from arbitrary arrest and seizure. In contrast to some libertarian interpretations of utilitarianism, Rawls did not advocate absolute or complete liberty which would allow members of society to have or to keep absolutely anything. The difference principle requires that all economic inequalities be arranged so that they are both: a) to the benefit of the least advantaged and b) attached to offices and positions open to all members under conditions of fair equality of opportunity. If this is to occur, Rawls argued, each generation should â€Å"preserve the gains of culture and civilization, and maintain intact those just institutions that have been established† in addition to putting aside â€Å"in each period of time a suitable amount of real capital accumulation. † Rawls is willing to tolerate inequalities in society but only if they are arranged so that an inequality actually assists the least advantaged members of society and that the inequalities are connected to positions, offices, or jobs that each member has an equal opportunity to attain. In the United States, this scheme is oftentimes called â€Å"equal opportunity. † The inequalities Rawls discussed include: inequalities in the distribution of income and wealth as well as inequalities imposed by institutions that use differences in authority and resRawls is willing to tolerate inequalities in society but only if they are arranged so that any inequality actually assists the least advantaged members of society and that the inequalities are connected to positions, offices, or jobs that each member has an equal opportunity to attain. In the United States, this scheme is oftentimes called â€Å"equal opportunity. † The inequalities Rawls discussed include: inequalities in the distribution of income and wealth as well as inequalities imposed by institutions that use differences in authority and responsibility or chains of command. The reason the representatives in the original position and operating from behind the veil of ignorance would agree upon the difference principle is not due to the existence of a social contract but to ethics. That is, members of society do not deserve either their natural abilities or their place in a social hierarchy. Where and when one was born and the privileges and assets afforded by one’s birth is a matter of sheer luck. It would be unfair, Rawls contended, were those born into the least advantaged of society to remain in that place if all members of society could do better by abandoning (or redistributing) initial differences. According to Rawls, this is what ethics? according to the standard of justice? demands and, in the United States, this is the basis of what is oftentimes called â€Å"affirmative action. † The representatives would agree. The liberty principle must always take precedence to the difference principle so that every member of society is assured of equal basic liberties. Similarly, the second part of the difference principle cited above (b) must take priority to the first part (a) so that the conditions of fair equality of opportunity are also guaranteed for everyone (1971, p. 162). Thus, the two principles of justice, the liberty principle and the difference principle, are ordered because society cannot justify a decrease in liberty by increasing any member’s social and economic advantage. Reflecting Rawls’ interest in political philosophy, the liberty and principle and the difference principle apply to the basic structure of society (what might be called a â€Å"macro view†)? society’s fundamental political and economic arrangements? rather than to particular conduct by governmental officials or individual laws (what might be called a â€Å"micro view†). The liberty principle requires society to provide each citizen with a fully adequate scheme of basic liberties (e. g. , freedom of conscience, freedom of expression, and due process of law). The difference principle requires that inequalities in wealth and social position be arranged so as to benefit society’s most disadvantaged group. In cases where the two principles conflict, Rawls argues the liberty principle must always take precedence over the difference principle. One example that applies Rawls’ theory of justice involves how one would become a lawyer in the society designed by the representatives in the original position and operating from behind the veil of ignorance. This example also indicates how and why inequalities would exist in that society. In the original position and operating from behind the veil of ignorance, representatives organize society to be governed according to the liberty principle and the difference principle. In that society, any member of society can become a lawyer if one possesses the talent. So, a young woman discovers that she possesses the talent and interest to become a lawyer and decides that this is what she wants to do in her life. But, to get the education she actually needs to become a lawyer requires an inequality. That is, less fortunate people must help pay for her education at the public university’s law school with their taxes. In return, however, this young woman will perform some very important functions for other people? including the less fortunate? once she becomes a lawyer. At the same time, however, the lawyer will make a lot of money. But, she is free to keep it because she has earned it. At the same time, she will also pay taxes to the government which, in turn, will be used to provide needed programs for the least advantaged members of society. The issue of equitable pay also provides a practical example that clarifies how Rawls’ theory of justice can be applied (Maclagan, 1998, pp. 96-97). Noting that the principle â€Å"equal pay for equal work† is eminently fair in concept, Maclagan notes that not all work is equal. What is really needed in society is some rational basis to compare what sometimes are very different occupations and jobs, especially when this involves comparing â€Å"men’s work† and â€Å"women’s work. † Typically, the criteria used to compare dissimilar jobs quantifies work requirements as well as the investment individuals must make to attain these positions. In addition, the amount of skill and training required, the potential for danger and threat to one’s life, the disagreeableness involved in the work, as well as the degree of responsibility associated with a job all figure prominently when making such calculations. In actual practice, however, making comparisons between dissimilar jobs is an immensely difficult undertaking, as Maclagan notes, citing as an example the difficulties management and labor both confront in the process of collective bargaining. Collective bargaining involves ethics because each party declares what the other ought to do. When these differences are resolved through a consensus, a â€Å"contract† provides the basic structure by which the members of that society (called the â€Å"corporation†) will organize and govern themselves for a specific period of time. Coming to agreement upon a contract—like Rawls’ concept of reflective equilibrium—requires both parties to the collective bargaining process to align their principles and intuitions through the process of considered dialogue and mutual judgment. Furthermore, the contract? like Rawls’ difference principle? tolerates inequalities in pay but only as long as the least advantaged enjoy equal opportunity and their situation is protected if not improved. What is noteworthy about Maclagan’s example is that the parties are not in the original position nor do they operate from behind a veil of ignorance. Instead, they have to move toward those positions if they are to adjudicate their differences amicably and for the benefit of both. The critics†¦ Since its first publication in 1971, Rawls’ work has received some begrudging if not respectful criticism. Some have asked which members of society constitute the â€Å"least advantaged†? For his part, Rawls identified these people generally as unskilled workers and those whose average income is less than the median income. What Rawls failed to address, however, is the plight of those who may be the truly least advantaged members of society, namely, those citizens of some permanently unemployed underclass, who depend entirely upon government largesse to subsist (e. g. welfare), or whose racial or ethnic origins condemn them to permanent disadvantage. The critics ask: Should not their plight be considered more important than those who possess more of society’s benefits? Furthermore, in so far as Rawls states the difference principle, it appears that inequalities are permissible but only if they better the lot of the least advantaged members of society. However, cr itics note, that position is inconsistent with Rawls’ claim that the representatives to the original position must not take an interest in anyone’s particular interests. The logic fails if preference must be given by those in the original position to the least advantaged. Lastly, Rawls’ critique of utilitarianism, his embrace of egalitarianism, and the actual effects of the difference principle combine in such a way that his philosophy can be construed to advocate political agenda with Marxist overtones. That is, in actual practice Rawls’ theory would redistribute society’s benefits away from the â€Å"haves† to the â€Å"have nots† with little or no concomitant bearing of society’s burdens. Economists, for example, note that Rawls has neglected to consider the market forces unleashed in a capitalist society where seeking one’s self-interest is arguably the primary motivating principle. These critics argue that even the least advantaged, if they so choose, can take advantage of the minimal benefits society offers them by virtue of citizenship. Through education, persistence, and hard work, the least advantaged (or, their children in the next generation) will be able to participate more fully in enjoying the benefits as well as in bearing the burdens of membership in society. The critics ask: â€Å"Is this not what has happened to waves of immigrants to the United States during the past two hundred years? † In light of these criticisms, Rawls modified the principles of liberty and difference. Pondering the question of social stability, Rawls considered how a society ordered by the two principles of liberty and difference might endure. In Political Liberalism (1996), Rawls introduced the idea that stability can be found in an overlapping consensus between citizens who hold diverse religious and philosophical views or conceptions about what constitutes the good to be sought. As with Maclagan’s (1998) collective bargaining example, this â€Å"overlapping consensus† is found in their agreement that justice is best defined as fairness. In Justice as Fairness (2001), Rawls introduced the idea of public reason, that is, the reason possessed by all citizens which contributes to social stability, a notion he first detailed in The Law of Peoples with â€Å"The Idea of Public Reason† Revisited (1999).

Personality of Donald Trump Essay

Success is defined by the accomplishments people make in their lives. These accomplishments are underscored by their abilities to lead and inspire others. Many theorists have pondered what characteristics and traits lead people to have such a passionate drive towards success. Donald Trump is one of these triumphant individuals, who despite adversity have accomplished unrenowned achievements. In order to understand what has made Donald successful, his character traits must be analyzed and compared to acknowledged theory. Donald Trump is a true American success story and his approach to business, along with his personality, must be closely explored. Donald Trump was born in New York City on June 14, 1946, to Fred and Mary Trump and is the fourth of five children. Fred Trump was a self-made successful real estate developer, who became a millionaire by the time Donald was born. He built modest homes and apartment buildings and liked to stay out of the spotlight. He was a man of strong conviction and self-confidence and instilled in his children the importance of believing in themselves, being optimistic and striving for success (Slater, 2005). The Trumps lived well but simply and were not flamboyant in their spending. Donald’s parents were frugal in the sense that they knew it was not easy to make money and that money should be treated with respect (Trump). Fred was strict with his children but a devoted husband and father. Mary was a  traditional housewife but had a flair for the dramatic and was enchanted by royalty and glamour (O’Brien, 2005). She had a great sense for showiness, loved to organize family parties and events, and was always the star of the show. Donald has said that, when it comes to real estate, his dad was his best teacher. He claims he began to learn as a small child when playing at his father’s feet, as he listened to his father conduct business over the phone with building contractors. Donald boasts that, by the age of ten, he knew more about erecting a building than many adults did (Slater, 2005). During school vacations, Donald and his brothers would tag along with their father to help with projects and to collect rents. He truly admired his father. He wanted to follow in his footsteps but not to have to walk in his father’s shadow. He wanted to achieve greatness on his own and be known as Donald Trump, not Fred Trump’s son. In his youth, Donald was pretty wild and rambunctious. As early as the second grade, he punched his music teacher and gave him a black eye. By the age of thirteen, his parents had lost patience with him and shipped him off to New York Military Academy. Donald quickly adapted to this iron-fisted environment and here he began to develop his competitive nature and an awareness of his appearance (O’Brien, 2005). He strove to be successful at everything he did. He excelled in both academics and sports and discovered one of the character traits he is now most known for, his self-confidence. Attending the military academy was the turning point in Donald’s life, where he began to develop his personality and become the Donald Trump the world knows today. Fred Trump had always hoped his sons would all join him in his business, and at various times they did. Fred Jr., Donald’s brother, did not care for the business, and did not get along with his father very well. He left the business and became a pilot. He was a troubled man, and at the age of 42 died of a heart attack and alcoholism. This was one of the worst events Donald claims to have experienced. For this reason, he has never smoked nor drank. Donald believed that most people were self-serving and that many took  advantage of his brother. After his brother’s death, Donald vowed to always be on guard and to be untrusting of everyone (Slater, 2005). After completing an associate’s degree at the University of Pennsylvania’s Wharton School of Finance, he went to work for his father for five years. Donald’s father, who kept his dealings in Brooklyn and Queens, made it big on a smaller scale, but Donald was determined to make it big on a larger one; so he packed up all of his belongings and moved to Manhattan, the heart of New York. He continued to work for his father, and when he began to consider moving to California and going into show business, an associate convinced him that real estate was truly his forte (O’Brien, 2005). When Donald moved to Manhattan, his bank account and wallet were practically empty but that did not stop him. Trump used his negotiating skills and persistence to join an exclusive club in New York, which catered only to the elite. Recognizing his magnetism and ingenuity, the club let Donald join strictly on the condition that he would leave the other members’ wives alone. He did not intend to use the club to play polo and sail on yachts, but rather to use his membership to make contacts and that is exactly is what he did. (AskMen.com, 2005). Trump had made himself one of the most powerful real estate businessmen in the 1980s with the ownership of several buildings such as Trump Towers, Trump Parc, and The Plaza Hotel, as well as the New Jersey Generals football team. He also invested in the casino business in Atlantic City and New Jersey. Due to his impetuous nature though, Donald rushed into many ventures without planning ahead. He got himself deep in debt and a recession forced him into bankruptcy. He climbed to his feet, wiped the dirt off of his knees, and came back fighting and more determined than ever. (AskMen.com, 2005). In 2004, Donald teamed up with NBC to produce and star in a television reality show, The Apprentice. This quickly became the number one new show on television. Each season begins with a group of contestants with backgrounds in various enterprises, typically including real estate, restaurant  management, political consulting, sales and marketing. During the show, these contestants live in a communal house, allowing their relationships to build. They are placed into task teams and each week are assigned a task which requires selecting a project manager for the task. The winning team receives a reward, while the losing team faces a boardroom showdown in order to determine which team member should be eliminated from the show. The premise of the show, which bills itself as the â€Å"ultimate job interview,† is to conduct a job talent search for a person to head one of Trump’s companies. The position starts with an â€Å"Introductory† one-year contract with a startin g yearly salary exceeding six figures, $250,000 to be exact. The Apprentice is just another success to add to Trumps report card. (Woopidoo.com). Donald likes to be closely involved in every aspect of his business. When any new construction is under way, he is very much like his father. He always visits the construction sites and likes to micromanage his projects. He haggles with project managers, meets with foremen and also discusses the jobs with construction workers themselves. As to his personal life, Donald is currently in his third marriage. He was married to his first wife, Ivana, for 13 years and had three children from the marriage, two boys and a girl. Donald’s second marriage to wife Marla, lasted for six years. They had one child, a baby girl. Donald married again in 2005 to a Slovenian model, Melania Knauss, and they recently had a baby boy. Donald’s aggressions and one-sided focus are what allowed him to break down the existing barriers to obtain his goals of becoming successful as a developer. With that being said, there is a sad and dark side to Donald Trump; it is believed that he suffers from Obsessive Compulsive Disorder. His OCD is to buy and build whatever comes to his mind. His actions time and time again have proven that, when he sets his sights on something, he just goes for it no matter what. Trump does not appear to have any set strategies. Many times, Donald Trump’s impulsiveness does not let him see what will happen after he makes that first pivotal step in any direction. In  addition, Donald’s concern for neatness and appearance extends deeper regarding cleanliness. He has had a lifelong aversion to germs and is a self-professed germ-phobic. He avoids too much hand shaking, and washes his hands thoroughly and as often as possible. He would refuse to put food in his mouth after shaking someone’s hand. He feels this keeps him safer from the risk of contracting any illnesses. Donald Trump is a ripe candidate for further analyses of psychological theory. Carl Jung, a neo-freudian theorist, believed in not just the unconscious but rather the collective unconscious, which was ideas or memories that are part of a person’s biological heritage and these inherited tendencies, such as family, faith and fears, predispose us to view the external world in certain ways. Jung referred to these ideas or memories as archetypes. Jung described many archetypes but focused on three specific ones: the animus/anima, the shadow and the self (Heffner, 2002). This theory would state that Donald Trump was born to be the person he is now. Jung also believed that spiritual needs are just as important, and possibly more important, as biological needs. â€Å"Introverts try to harmonize inner conflicts into a whole self. Extroverts try to harmonize self with social realities (Spencer).† Jung would have considered Trump an extrovert because Donald is focused and driven with society around him. Jung would have also considered Trump a poster child because those who help themselves succeed in life, and that is what Trump had been taught and encouraged to believe. Jung also stated that people look for those that are like themselves, and much of that influence comes from our parents. Donald Trump’s mother had a visible influence on his need to be in the impeccably dressed, and always in the spotlight. Donald’s father was a very successful businessman, so that is what Donald knew to look for in life. He has always been associated with rich and powerful people in many different fields, from radio and his conn ection with Howard Stern to sports and political figures. Gordon Allport, a trait theorist, wanted to understand the differences between people in personality and to see how the different characteristics and processes interact and function together in an integrated way. Allport  believed that people had traits. He classified these traits into specific categories: individual, common, cardinal, central, secondary, motivational, and stylistic traits. He believed that every person had a small number of specific traits, known as central traits that predominate the personality. Allport believed that once in a while one of the central traits would become a dominant trait, known as a cardinal trait. The central and cardinal traits are environmentally influenced. (Heffner, 2002). According to Allport’s theory, Donald Trump’s traits would be classified into certain categories. For instance, a central trait would be self-confidence and a cardinal trait would be determination. Allport also believed that humans act on the tendency to satisfy basic survival needs, which he referred to as opportunistic functioning, and that most of what we do in life is what makes us who we are. He was a strong proponent of acknowledging ones self-image (Boeree, 2006). Donald Trump has a very positive self-image, made obvious from the way he dresses to the things he creates. His name, Trump, is on everything he has built. He works on the belief that he cannot fail and, even if he fails, it is due to someone else not doing the job to his standards. As a biological theorist, Hans Eysenck’s theory is based primarily on physiology and genetics. He believes that habits are learned, but he also believes that people can grow out of personality that is genetically inherited. Eysenck believed that â€Å"the human brain has excitatory and inhibitory neural mechanisms (Neill, 2005).† Eysenck hypothesized these two mechanisms were regulated by a structure known as ARAS in the brain stem. The ARAS lets stimulus into the brain. If it lets a lot of stimulus into the brain, chronic over arousal, a person is an introvert and if the ARAS does not allow much stimulus, chronic under arousal, into the brain, a person is an extrovert (Heffner, 2002). Eysenck determined that all people could be categorized into two groups: neurotic and extrovert-introvert. Everyone exhibits specific responses to both internal and external stimuli. Both neuroticism and extroversion can be seen in Donald Trump, as he has admitted to not wanting to shake hands because of his fear of germs. He said that he finds the hand shaking ritual barbaric. Donald’s personality has always shown him to be an extrovert by nature, which has served him well in his business dealings. Being outgoing and upfront is how he influences lucrative deal offers to be signed, and has added to his success. As a humanistic theorist, Carl Rogers believed all people need to maintain and enhance life, and this tendency for growth is known as self-actualization (Boeree, 2006). There are levels on the path to self-actualization. One level is the desire to preserve and enhance oneself, also known as the physical level, and the higher level, the psychological level, is to seek out new experiences, master new skills, quit boring jobs, and find more exciting ones. Once a person has achieved self-actualization, they are known as a fully functioning person and able to live a life full of meaning, challenges and fulfillment. Rogers believed self-actualization was primarily determined by events in a person’s childhood experiences and these experiences need to be positive. According to Rogers’ theory, Donald Trump would be a fully functioning person. It is very evident in Mr. Trump’s actions as to how he feels about himself. Rogers claims that if you feel smart and/or think that you are smart, then it becomes part of your self-concept. Donald Trump is very confident and has an enormous ego, which has helped him throughout his career. This ego carries over to Donald Trump’s personal relationships in dealing with women as well as business associates. He has always surrounded himself with beautiful women regardless of the fact that many believe he is not all that handsome. This confidence serves as a magnet that makes people want to be in his presence. He has a good image of himself but never lets his self-image get in the way of what he is after, thus even business associates cannot resist giving in to him. This, in turn, feeds his ego. He also feels that he is superior to others in the business world and, even through his financial troubles, has always managed to emerge as though it was just a bump in the road and part of his plan. George Kelly, a cognitive theorist, believed that, because people are trying  to understand what was going on around them, people are scientists. Kelly’s theory is known as the fundamental postulate, which states people act in a manner with how people expect the world to be based on their interpretations of past events (Spencer). In other words, people use past experiences in life to anticipate future events. An example would be if we view the world and people around us as friendly and safe, then we would find it easy to engage with others for advice. If we see the world and people around us as cruel and selfish, then we would strictly rely on our own abilities to interpret things. For a long time, Donald Trump vowed not to trust anyone after the death of his brother and has only relied on himself to build his fortune, which gives the idea that he trusts no one more than himself. This mistrust is why he most likely involves himself so deeply in all facets of his business and micromanages. In some cases, this mistrust in others has been his undoing in his some of his business dealings and possibly his marriages. Needless to say, Donald Trump’s flamboyance success and highly public persona make Donald a perfect specimen for a personality evaluation. Many of the theorists believe that a lot of Donald’s personality stems from his relationship with and the influence of his parents. This includes his mother’s influence on being in the spotlight and his father’s sense of being a disciplined businessman. Donald Trump is a very confident, competitive, successful and extravagant businessman who has made himself instantly recognizable wherever he goes. Whatever theory one may have, all agree that Donald Trump is a very goal driven person and it is believed that he will always resurface no matter how his investments turn out. Trump summed up his future in these few words, â€Å"Anyone who thinks my story is anywhere near over is sadly mistaken.† (AskMen.com, 2005).† References AskMen.com. (2005). Men of the week: businessmen. Retrieved April 18, 2006, from AskMen.com Website: http://www.askmen.com/men/business_politics/38_donald_trump.html. Boeree, C. G. (2006). Personality theories. Retrieved April 15, 2006, from Shippensburg University Website: http://www.ship.edu/~cgboeree/perscontents.html. Heffner, C. L. (2002, August 21). Personality theory: an introduction. Retrieved April 26, 2006, from AllPsych Online: The Virtual Psychology Classroom Website: http://allpsych.com/personalitysynopsis/index.html. Neill, J. (2005, September 19). Personality: theory & perspectives. Retrieved April 26, 2006, Website: http://www.wilderdom.com/personality/personality.html. O’Brien, T. L. (2005). TrumpNation. The art of being Donald. Warner Business Books. New York, NY. Slater, R. (2005). No such thing as exposure. Pearson Education, Inc. Upper Saddle River, NJ. Spencer, W. B. (n.d.). Theories of personality. Retrieved April 26, 2006, from Eastern Illinois University Psychology Department Website: http://psych.eiu.edu/spencer/. Trump, D. (2004). Trump How to Get Rich. New York, NY: Random House. Woopidoo.com. (n.d.). Donald trump biography. Retrieved April 28, 2006, from Woopidoo! Website: http://www.woopidoo.com/biography/donald-trump.htm.