Compensation and benefits

  • Compensation based on employee’s position and individual performance as well as company’s success
  • Pay generally comprises fixed and variable components plus benefits

In addition to market-oriented compensation, BASF’s total offer also comprises benefits, individual opportunities for development and a good working environment. Our employees’ pay is based on global compensation principles. These take into account an employee’s position and individual performance as well as BASF’s success as a company. We are currently working on a global framework for these compensation principles as well as an overview of the company’s total offer for our employees (“you@BASF”). Analyses of the Ludwigshafen site have shown that, for contracts exempt from collective agreements, there are no systematic differences in pay between men and women, provided the positions and qualifications are comparable.

As a rule, compensation is comprised of fixed and variable components as well as benefits that often exceed legal requirements. In many countries, these include company pension benefits, supplementary health insurance, and share programs. In 2014, the BASF Group spent €9,224 million on wages and salaries, social security contributions and expenses for pensions and assistance (2013: €9,285 million), representing a 0.7% decrease in personnel expenses.

This was largely due to the reversal of provisions for the long-term incentive (LTI) program and to currency effects, and was partly counterbalanced by the rising number of employees as well as salary and wage increases.

BASF Group personnel expenses (in million €)





Change in %

Wages and salaries





Social security contributions and expenses for pensions and assistance





Thereof for pension benefits





Total personnel expenses





Employees participate in company’s success

  • Annual bonus for 2014 to once again reach high level
  • BASF share program “plus” fosters employees’ long-term participation in company

Our employees participate in the company’s success through variable pay components and are rewarded for their individual performance. The same principles basically apply for all employees. The amount of the variable component is determined by the success of the company – measured by the return on assets of the BASF Group – and the employee’s individual performance. Individual performance is assessed using a globally consistent performance management approach. The annual bonus for 2014 will once again reach a high level.

In numerous Group companies, employees are offered the chance to purchase shares. The BASF share program “plus” sponsors the long-term participation of our employees in the company through incentive shares: By investing a part of their compensation in BASF shares, they take part in the long-term development of BASF.

Since 1999, BASF has offered its senior executives the opportunity to participate in a share-price-based compensation program. This long-term incentive (LTI) program ties a portion of their compensation to the long-term performance of BASF shares. In 2014, 94% of the approximately 1,200 senior executives eligible worldwide participated in the LTI program, investing up to 30% of their variable compensation in BASF shares.