31 – Compensation for the Board of Executive Directors and Supervisory Board

Compensation of the Board of Executive Directors and Supervisory Board (Million €)

 


2018

2017

1

Total compensation of former members of the Board of Executive Directors includes compensation for Dr. Kurt Bock before pension benefits in the amount of approximately €1.1 million.

2

Compensation for Dr. Harald Schwager and Margret Suckale for their active membership on the Board of Executive Directors in 2017 is included under total compensation of former members of the Board of Executive Directors in the amount of approximately €1.0 million each.

Non-performance-related and performance-related cash compensation of the Board of Executive Directors

 

14.3

24.8

Fair value of options granted to the Board of Executive Directors in the fiscal year as of grant date

 

4.5

2.7

Total compensation of the Board of Executive Directors

 

18.8

27.5

Service costs for members of the Board of Executive Directors

 

6.3

7.0

 

 

 

 

Compensation of the Supervisory Board

 

3.3

3.3

Total compensation of former members of the Board of Executive Directors and their surviving dependents1, 2

 

(4.4)

7.6

Pension provisions for former members of the Board of Executive Directors and their surviving dependents

 

159.5

144.3

Guarantees assumed for members of the Board of Executive Directors and the Supervisory Board

 

The annual variable compensation in effect until the end of 2017 was replaced as of 2018 with a forward-looking performance bonus that is geared to sustainable corporate development and has a three-year deferral component. The performance bonus is based on the performance of the Board of Executive Directors as a whole and the return on capital employed (ROCE) of the BASF Group. Subject to certain conditions, ROCE is adjusted for special items from acquisitions and divestitures. The conditions for the adjustment of ROCE were not met in 2018.

Until December 31, 2017, performance-related compensation of the Board of Executive Directors was based on the return on assets adjusted for special effects, as well as the performance of the Board of Executive Directors as a whole. Return on assets corresponds to income before income taxes plus interest expenses as a percentage of average assets.

The members of the Board of Executive Directors were granted 210,228 option rights under the long-term incentive (LTI) program in 2018. The market valuation of the option rights of active and former members of the Board of Executive Directors resulted in income totaling €28.5 million in 2018 (2017: €5.8 million).

For more information on the compensation of members of the Board of Executive Directors, see the Compensation Report

For more information on the members of the Supervisory Board and Board of Executive Directors, including their memberships on other boards, see:
Board of Executive Directors
Supervisory Board