Corporate Governance

Corporate Governance Report

Corporate governance refers to the entire system for managing and supervising a company. This includes the organization, values, corporate principles and guidelines as well as internal and external control and monitoring mechanisms. Effective and transparent corporate governance guarantees that BASF is managed and monitored in a responsible manner focused on value creation. This fosters the confidence of our domestic and international investors, the financial markets, our customers and other business partners, employees, and the public in BASF.

• Supervision of Company Management
• Participation of Women in Leadership Positions
• Shareholders' Rights
• German Corporate Governance Code
• Disclosures
• Share Ownership by Board Members

Compliance

With our Group-wide Compliance Program, we aim to ensure adherence to legal regulations and the company’s internal guidelines. We have integrated compliance into our “We create chemistry” strategy. Our employee Code of Conduct firmly embeds these mandatory standards into everyday business. Members of the Board of Executive Directors are also expressly obligated to follow these principles.

Management and Supervisory Boards

• Board of Executive Directors
• Supervisory Board

Compensation Report

This report outlines the main principles of the compensation for the Board of Executive Directors and discloses the amount and structure of the compensation of each Board member. Furthermore, it provides information on end-of-service undertakings with respect to Board members, as well as information on the compensation of Supervisory Board members.

• Board of Executive Directors
• Supervisory Board

Report of the Supervisory Board

For our anniversary in 2015 celebrating BASF’s 150 years of existence, we had expected more favorable conditions. Over the course of the year, the business environment deteriorated as political and macroeconomic challenges increased. Oil prices and growth both dropped sharply. Sales and earnings fell in this difficult environment, primarily from the divestiture of our natural gas trading and storage business; cash flow was increased. The entrepreneurially demanding journey to further shape the “We create chemistry” strategy will be continued, and has the full support of the Supervisory Board.

Declaration of Conformity

Declaration of Conformity 2015 of the Board of Executive Directors and the Supervisory Board of BASF SE