General
Information
Last Update:
Mar. 10, 2011
bottom of page
Part of the audited Consolidated Financial Statements and Management´s Analysis

Personnel expenses and social benefits, employee participation

Personnel expenses and social benefits

In 2010, the BASF Group spent €8,228 million on wages and salaries, social security contributions, pension contributions and assistance (2009: €7,107 million). Personnel expenses increased by 15.8%, particularly as a result of higher expenses for salary components related to the success of the BASF Group and the long-term incentive program as well as the Ciba acquisition. Compensation for our employees comprises remuneration with fixed and variable components as well as social benefits that go beyond the legal obligations. These benefits include a company pension plan, supplementary health insurance and share programs.

  Download (Download XLS xls, 16 kB)

BASF Group personnel expenses 2010 (million €)

 

 

2010

2009

Change in %

Wages and salaries

6,731

5,942

13.3

Social security contributions and expenses for pensions and assistance

1,497

1,165

28.5

Thereof for pension benefits

408

178

129.2

Personnel expenses

8,228

7,107

15.8

Employee participation in the company’s success

  • “plus” share program encourages employees to make long-term investments through incentive shares; 18,932 employees purchased 632,560 BASF shares in 2010
  • Long-term incentive (LTI) program ties a proportion of senior executives’ compensation to the long-term performance of BASF shares; in 2010, 91% of the senior executives eligible participated worldwide

We want to foster our employees’ interest in the company’s success and business performance.

With variable remuneration 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. Despite the difficult economic environment in 2009, BASF was able to give employees a bonus in 2010 and announced it would reward its employees for their performance during the crisis with a special payment. The bonus payment for 2010 will be significantly higher than the year before.

The “plus” share program promotes the long-term participation of our employees through incentive shares, allowing them to invest part of their remuneration in BASF shares. In 2010, 18,932 employees purchased 632,560 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 2010, 91% of the approximately 1,100 senior executives eligible participated in the LTI program worldwide, investing up to 30% of their variable compensation.
For more, see Note 25

previous page top of page next page