16.4.2 Disclosures Pursuant to the Recommendations of the German Corporate Governance Code

In accordance with the recommendations of the German Corporate governance comprises the long-term management and oversight of the company in accordance with the principles of responsibility and transparency. The German Corporate Governance Code sets out basic principles for the management and oversight of listed companies. Code, the following tables show the compensation – including fringe benefits – granted for 2015, indicating the target values and the maximum and minimum achievable values for the variable compensation components, along with the allocation of compensation.

Compensation and Benefits Granted for 2015

 

 

Serving members of the Board of Management as of December 31, 2015

 

Former members

 

 

Dr. Marijn Dekkers (Chairman)

 

Werner Baumann (Strategy)

 

Johannes Dietsch1 (Finance)

 

Michael König (Human Resources)

 

Kemal Malik1 (Innovation)

 

Prof. Dr. Wolfgang Plischke

 

 

Joined Jan. 1, 2010

 

Joined Jan. 1, 2010

 

Joined Sept. 1, 2014

 

Joined April 1, 2013

 

Joined Feb. 1, 2014

 

Stepped down April 29, 2014

 

 

Tar­get value 2014

Tar­get value 2015

Min. 2015

Max.2 2015

 

Tar­get value 2014

Tar­get value 2015

Min. 2015

Max.2 2015

 

Tar­get value 2014

Tar­get value 2015

Min. 2015

Max.2 2015

 

Tar­get value 2014

Tar­get value 2015

Min. 2015

Max.2 2015

 

Tar­get value 2014

Tar­get value 2015

Min. 2015

Max.2 2015

 

Tar­get value 2014

Tar­get value 2015

Min. 2015

Max.2 2015

 

 

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€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

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1

The compensation and fringe benefits paid to Johannes Dietsch and Kemal Malik in 2014 relate solely to their service on the Board of Management. The 2014 Aspire tranche was granted to Johannes Dietsch and Kemal Malik prior to the dates on which they were appointed to the Board of Management. The vesting periods for these tranches extend past those dates.

2

The maximum achievable variable compensation shown here does not yet take into account the caps applicable. Payments in a single year are limited to 1.8 times the target compensation (see “Compensation structure” in Chapter 16.4.1).

3

Capped at 300%

4

Capped at 200% of the maximum short-term variable cash compensation (50% of STI)

Fixed annual compen­sation

 

1,363

1,374

1,374

1,374

 

899

906

906

906

 

240

725

725

725

 

719

725

725

725

 

659

725

725

725

 

238

Fringe benefits

 

42

40

40

40

 

67

47

47

47

 

22

44

44

44

 

222

36

36

36

 

72

40

40

40

 

18

Total annual fixed compen­sation

 

1,405

1,414

1,414

1,414

 

966

953

953

953

 

262

769

769

769

 

941

761

761

761

 

731

765

765

765

 

256

Short-term variable cash compensation (50% of STI)

 

1,466

1,477

0

2,955

 

843

849

0

1,699

 

225

679

0

1,359

 

674

679

0

1,359

 

618

679

0

1,359

 

225

Long-term stock-based compen­sation (Aspire)3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014 (Jan. 1, 2014 – Dec. 31, 2017) 

 

545

 

359

 

107

 

288

 

135

 

96

2015 (Jan. 1, 2015 – Dec. 31, 2018) 

 

550

0

1,649

 

362

0

1,087

 

290

0

870

 

290

0

870

 

290

0

870

 

Long-term variable cash compen­sation (virtual Bayer shares)4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014 (Jan. 1, 2015 – Dec. 31, 2017) 

 

1,466

 

843

 

225

 

674

 

618

 

230

2015 (Jan. 1, 2016 – Dec. 31, 2018) 

 

1,477

0

5,909

 

849

0

3,397

 

679

0

2,718

 

679

0

2,718

 

679

0

2,718

 

Total

 

4,882

4,918

1,414

11,927

 

3,011

3,013

953

7,136

 

819

2,417

769

5,716

 

2,577

2,409

761

5,708

 

2,102

2,413

765

5,712

 

807

Service cost / benefit expense

 

722

967

967

967

 

204

227

227

227

 

65

220

220

220

 

176

211

211

211

 

216

222

222

222

 

2

Total compen­sation

 

5,604

5,885

2,381

12,894

 

3,215

3,240

1,180

7,363

 

884

2,637

989

5,936

 

2,753

2,620

972

5,919

 

2,318

2,635

987

5,934

 

809

Allocation of Compensation for 2014 and 2015

 

 

Serving members of the Board of Management as of December 31, 2015

 

Former members

 

 

Dr. Marijn Dekkers (Chairman)

 

Werner Baumann (Strategy)

 

Johannes Dietsch (Finance)

 

Michael König (Human Resources)

 

Kemal Malik (Innovation)

 

Prof. Dr. Wolfgang Plischke

 

 

Joined Jan. 1, 2010

 

Joined Jan. 1, 2010

 

Joined Sept. 1, 2014

 

Joined April 1, 2013

 

Joined Feb. 1, 2014

 

Stepped down April 29, 2014

 

 

2014

2015

 

2014

2015

 

2014

2015

 

2014

2015

 

2014

2015

 

2014

2015

 

 

€ thousand

€ thousand

 

€ thousand

€ thousand

 

€ thousand

€ thousand

 

€ thousand

€ thousand

 

€ thousand

€ thousand

 

€ thousand

€ thousand

1

The increased variable compensation for Werner Baumann resulted mainly from his temporary duties as head of Bayer HealthCare in addition to his primary responsibilities as a member of the Board of Management.

2

The payment to Michael König from the 2010 Aspire tranche and the payments to Johannes Dietsch, Michael König and Kemal Malik from the 2011 Aspire tranche related to vesting periods that began before they joined the Board of Management. The tranches were not yet fully vested at the dates on which they joined the Board of Management.

Fixed annual compensation

 

1,363

1,374

 

899

906

 

240

725

 

719

725

 

659

725

 

238

Fringe benefits

 

42

40

 

67

47

 

22

44

 

222

36

 

72

40

 

18

Total

 

1,405

1,414

 

966

953

 

262

769

 

941

761

 

731

765

 

256

Short-term variable cash compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for 2014

 

1,828

 

1,051

 

280

 

841

 

771

 

280

for 20151

 

1,995

 

1,237

 

917

 

917

 

917

 

Long-term stock-based cash compensation (Aspire)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010 (Jan. 1, 2010 – Dec. 31, 2013)2

 

960

 

759

 

 

35

 

 

759

2011 (Jan. 1, 2011 – Dec. 31, 2014)

 

1,459

 

769

 

297

 

191

 

384

 

Long-term cash compensation (virtual Bayer shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010 (Jan. 1, 2011 – Dec. 31, 2013)

 

1,594

 

978

 

 

 

 

1,026

2011 (Jan. 1, 2012 – Dec. 31, 2014)

 

2,841

 

1,307

 

 

 

 

Advance payment of 2/3 of long-term cash compensation (virtual Bayer shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011 (Jan. 1, 2012 – Dec. 31, 2014)

 

 

 

 

 

 

915

Total

 

5,787

7,709

 

3,754

4,266

 

542

1,983

 

1,817

1,869

 

1,502

2,066

 

3,236

Service cost / benefit expense

 

722

967

 

204

227

 

65

220

 

176

211

 

216

222

 

2

Total compensation

 

6,509

8,676

 

3,958

4,493

 

607

2,203

 

1,993

2,080

 

1,718

2,288

 

3,238