General
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Last Update:
March 1, 2012
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Personnel expenses and social benefits, employee participation

Personnel expenses and social benefits

In 2011, the BASF Group spent €8,576 million on wages and salaries, social security contributions and expenses for pensions and assistance (2010: €8,228 million). Personnel expenses rose by 4.2%, particularly as a result of the Cognis acquisition. This increase was partially offset by lower provisions for the long-term incentive (LTI) program, our stock price-based compensation program. Compensation for our employees comprises remuneration with fixed and variable components as well as social benefits that often exceed the legal requirements. These benefits include a company pension plan, supplementary health insurance and share programs.

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BASF Group personnel expenses (million €)

 

 

 

2011

2010

Change in %

Wages and salaries

6,856

6,731

1.9

Social security contributions and expenses for pensions and assistance

1,720

1,497

14.9

Thereof for pension benefits

465

408

14.0

Personnel expenses

8,576

8,228

4.2

Employee participation in the company’s success

  • “plus” share program encourages employees to make long-term investments through incentive shares: in 2011, 19,654 employees purchased 677,480 shares
  • Compensation program ties a proportion of senior executives’ compensation to the long-term performance of BASF shares: in 2011, 94% of eligible senior executives worldwide participated in the LTI program

With variable compensation systems, we allow employees to share in the company’s success and be rewarded for their individual performance. The same basic principles apply to all employees. The variable component is determined by the economic success of the BASF Group – measured by the return on assets – and the employee’s individual performance.

The bonus payment for 2011 will once again exceed the high level of the previous year. In numerous Group companies, employees are able to acquire shares in BASF SE. The “plus” share program promotes the long-term participation of our employees in the company through incentive shares, allowing them to invest part of their compensation in BASF shares. In 2011, 19,654 employees around the world purchased 677,480 shares under the “plus” program.

Since 1999, BASF has offered its senior executives the opportunity to participate in a stock price-based compensation program. This long-term incentive (LTI) program ties a proportion of their compensation to the long-term performance of BASF shares. In 2011, 94% of the approximately 1,100 senior executives eligible participated in the LTI program worldwide, investing up to 30% of their variable compensation.

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