38. Total Compensation of the Board of Management and the Supervisory Board, Advances and Loans

The compensation of the Board of Management comprises short-term payments, stock-based payments and post-employment benefits.

The following table shows the individual components of the Board of Management’s compensation according to IFRS:

Board of Management Compensation according to IFRS

 

 

2014

 

2015

 

 

€ thousand

 

€ thousand

Fixed annual compensation

 

4,118

 

4,455

Fringe benefits

 

443

 

207

Total short-term non-performance-related compensation

 

4,561

 

4,662

Short-term performance-related cash compensation

 

5,051

 

5,983

Total short-term compensation

 

9,612

 

10,645

Stock-based compensation (virtual Bayer shares) earned in the respective year

 

5,058

 

5,983

Change in value of existing entitlements to stock-based compensation (virtual Bayer shares)

 

1,559

 

556

Stock-based compensation (Aspire) earned in the respective year

 

3,602

 

2,330

Change in value of existing entitlements to stock-based compensation (Aspire)

 

687

 

272

Total stock-based compensation (long-term incentive)

 

10,906

 

9,141

Service cost for pension entitlements earned in the respective year

 

1,716

 

2,891

Total long-term compensation

 

12,622

 

12,032

Severance indemnity in connection with the termination of a service contract

 

 

1,131

Aggregate compensation (IFRS)

 

22,234

 

23,808

In addition to the above compensation, actuarial gains of €2,309 thousand (2014: losses of €11,311 thousand) incurred in connection with pension obligations to the currently serving members of the Board of Management were recognized outside profit or loss. These changes mainly resulted from the slight increase (2014: sharp decline) in the level of interest rates.

Further details are provided in the Compensation Report, which forms part of the Combined Management Report.

In addition to the provisions of €5,983 thousand (2014: €4,771 thousand) for the short-term variable cash compensation, an amount of €18,663 thousand (2014: €17,775 thousand) was recognized in the statement of financial position for future payments of stock-based compensation based on virtual shares to the members of the Board of Management serving as of December 31, 2015.

An amount of €7,110 thousand (2014: €7,155 thousand) was recognized in the statement of financial position for future payments of stock-based compensation based on the Aspire program to the members of the Board of Management serving as of December 31, 2015.

The present value of the defined benefit pension obligation for the members of the Board of Management serving as of December 31, 2015, was €33,491 thousand (2014: €32,248 thousand).

Pension payments to former members of the Board of Management and their surviving dependents amounted to €13,416 thousand (2014: €13,457 thousand). The defined benefit obligation for former members of the Board of Management and their surviving dependents amounted to €172,767 thousand (2014: €187,759 thousand).

The compensation of the Supervisory Board amounted to €3,291 thousand (2014: €3,286 thousand).

In addition to their compensation as members of the Supervisory Board, those employee representatives who are employees of Bayer Group companies receive compensation unrelated to their service on the Supervisory Board. The total amount of such compensation in 2015 was €741 thousand (2014: €737 thousand).

Pension obligations for employee representatives on the Supervisory Board amounted to €3,756 thousand (2014: €3,623 thousand).

There were no advances or loans to members of the Board of Management or the Supervisory Board outstanding as of December 31, 2015, nor at any time during 2015 or 2014.