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

 

 

2015

 

2016

 

 

€ thousand

 

€ thousand

Fixed annual compensation

 

4,455

 

6,385

Fringe benefits

 

207

 

664

Total short-term non-performance-related compensation

 

4,662

 

7,049

Short-term performance-related cash compensation

 

5,983

 

9,063

Total short-term compensation

 

10,645

 

16,112

Stock-based compensation earned (virtual Bayer shares)

 

5,983

 

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

 

556

 

(1,275)

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

 

2,330

 

5,217

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

 

272

 

(923)

Total stock-based compensation (long-term incentive)

 

9,141

 

3,019

Service cost for pension entitlements earned in the respective year

 

2,891

 

3,902

Total long-term compensation

 

12,032

 

6,921

Severance indemnity in connection with the termination of a service contract

 

1,131

 

4,542

Aggregate compensation (IFRS)

 

23,808

 

27,575

In addition to the above compensation, actuarial losses of €3,196 thousand (2015: gains of €2,309 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 decline (2015: slight increase) 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 €6,575 thousand (2015: €5,983 thousand) for the short-term variable cash compensation, an amount of €7,777 thousand (2015: €18,663 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, 2016.

An amount of €7,288 thousand (2015: €7,110 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, 2016.

The present value of the defined benefit pension obligation for the members of the Board of Management serving as of December 31, 2016, was €38,427 thousand (2015: €33,491 thousand).

Pension payments to former members of the Board of Management and their surviving dependents in 2016 amounted to €12,800 thousand (2015: €13,416 thousand). The defined benefit obligation for former members of the Board of Management and their surviving dependents amounted to €188,850 thousand (2015: €172,767 thousand).

The compensation of the Supervisory Board amounted to €3,479 thousand (2015: €3,291 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 2016 was €939 thousand (2015: €741 thousand).

Pension obligations for employee representatives on the Supervisory Board amounted to €4,399 thousand (2015: €3,756 thousand).

There were no advances or loans to members of the Board of Management or the Supervisory Board outstanding as of December 31, 2016, or at any time during 2016 or 2015.