German Corporate Governance Code
BASF accords great importance to good corporate governance. Therefore, BASF supports the German Corporate Governance Code, which is regarded as an important tool in the capital market-focused continuing development of corporate governance and control, and advocates responsible corporate governance that focuses on sustainably increasing the value of the company.
BASF SE follows all recommendations of the German Corporate Governance Code in its most recently revised version of May 2012. This also applies to the Code’s new recommendations regarding the independence and compensation of the Supervisory Board. The objective for the composition of the Supervisory Board is for seats to be filled exclusively by persons considered independent according to the regulations and criteria of the Code. The Supervisory Board of BASF SE receives annual compensation made up of fixed and performance-related components. The Supervisory Board’s performance-related compensation component is aligned with the sustainable growth of the company insofar as the earnings per share required to attain the same variable compensation increase annually. This creates an incentive to devote particular attention to the company’s long-term development and sustainably increase its enterprise value in the shareholders’ interests.
In the same manner, BASF fulfills nearly all of the non-obligatory suggestions of the German Corporate Governance Code. We have not implemented the suggestion to enable shareholders to follow the proceedings of the entire Shareholders’ Meeting online. The Shareholders’ Meeting is publicly accessible via online broadcast until the end of the speech by the Chairman of the Board of Executive Directors. The subsequent discussion of items on the agenda is not accessible online in order to preserve the character of the Shareholders’ Meeting as a meeting attended by our shareholders on-site.