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 publicly listed companies. Code, the following tables show the compensation – including fringe benefits – granted for 2016, 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 2016

 

 

Serving members of the Board of Management as of December 31, 2016

 

 

Werner Baumann (Chairman)

 

Liam Condon (Crop Science)

 

Johannes Dietsch (Finance)

 

 

Joined Jan. 1, 2010

 

Joined Jan. 1, 2016

 

Joined Sept. 1, 2014

 

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

1

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 Chapter “Compensation of the Board of Management”).

2

Following the change in the compensation system for the Board of Management effective January 1, 2016, the entire amount of the STI for 2016 will be paid out in cash in the second quarter of 2017. The 50:50 split of the STI into a cash payment and a grant of virtual Bayer shares was made for the last time for 2015.

3

The Aspire tranche for 2016 is subject to the new system for Bayer’s Aspire program (see Chapter “Compensation of the Board of Management”). The cap for this new long-term compensation program is 250%

Fixed annual compensation

 

906

1,285

1,285

1,285

 

800

800

800

 

725

750

750

750

Fringe benefits

 

47

47

47

47

 

44

44

44

 

44

83

83

83

Total fixed annual compensation

 

953

1,332

1,332

1,332

 

844

844

844

 

769

833

833

833

Short-term variable cash compensation2

 

849

1,475

0

2,950

 

800

0

1,600

 

679

750

0

1,500

Long-term variable cash compensation (virtual Bayer shares)2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 (Jan. 1, 2016 – Dec. 31, 2018) 

 

849

 

 

679

Long-term stock-based compensation (Aspire)3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 (Jan. 1, 2015 – Dec. 31, 2018) 

 

362

 

 

290

2016 (Jan. 1, 2016 – Dec. 31, 2019) 

 

 

1,983

0

4,957

 

1,624

0

4,059

 

1,522

0

3,805

Total

 

3,013

4,790

1,332

9,239

 

3,268

844

6,503

 

2,417

3,105

833

6,138

Service cost / benefit expense

 

227

764

764

764

 

330

330

330

 

220

318

318

318

Total compensation

 

3,240

5,554

2,096

10,003

 

3,598

1,174

6,833

 

2,637

3,423

1,151

6,456

Compensation and Benefits Granted for 2016 – continued

 

 

Serving members of the Board of Management as of December 31, 2016

 

 

Dr. Harmut Klusik (Human Resources, Technology & Sustainability)

 

Kemal Malik (Innovation)

 

Erica Mann (Consumer Health)

 

 

Joined Jan. 1, 2016

 

Joined Feb. 1, 2014

 

Joined Jan. 1, 2016

 

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

1

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 Chapter “Compensation of the Board of Management”).

2

Following the change in the compensation system for the Board of Management effective January 1, 2016, the entire amount of the STI for 2016 will be paid out in cash in the second quarter of 2017. The 50:50 split of the STI into a cash payment and a grant of virtual Bayer shares was made for the last time for 2015.

3

The Aspire tranche for 2016 is subject to the new system for Bayer’s Aspire program (see Chapter “Compensation of the Board of Management”). The cap for this new long-term compensation program is 250%

Fixed annual compensation

 

750

750

750

 

725

775

775

775

 

750

750

750

Fringe benefits

 

140

140

140

 

40

35

35

35

 

182

182

182

Total fixed annual compensation

 

890

890

890

 

765

810

810

810

 

932

932

932

Short-term variable cash compensation2

 

750

0

1,500

 

679

775

0

1,550

 

750

0

1,500

Long-term variable cash compensation (virtual Bayer shares)2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 (Jan. 1, 2016 – Dec. 31, 2018) 

 

 

679

 

2016 (Jan. 1, 2017 – Dec. 31, 2019) 

 

 

 

 

Long-term stock-based compensation (Aspire)3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 (Jan. 1, 2015 – Dec. 31, 2018) 

 

 

290

 

2016 (Jan. 1, 2016 – Dec. 31, 2019) 

 

1,522

0

3,805

 

 

1,573

0

3,932

 

1,522

0

3,806

Total

 

3,162

890

6,195

 

2,413

3,158

810

6,292

 

3,204

932

6,238

Service cost / benefit expense

 

316

316

316

 

222

318

318

318

 

219

219

219

Total compensation

 

3,478

1,206

6,511

 

2,635

3,476

1,128

6,610

 

3,423

1,151

6,457

Compensation and Benefits Granted for 2016 – continued

 

 

Serving members of the Board of Management as of December 31, 2016

 

Former members

 

 

Dieter Weinand (Pharmaceuticals)

 

Dr. Marijn Dekkers

 

Michael König

 

 

Joined Jan. 1, 2016

 

Stepped down April 30, 2016

 

Stepped down Dec. 31, 2015

 

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

Target value 2015

Target value 2016

Min. 2016

Max.1 2016

 

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

€ thou­sand

€ thou­sand

1

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 Chapter “Compensation of the Board of Management”).

2

Following the change in the compensation system for the Board of Management effective January 1, 2016, the entire amount of the STI for 2016 will be paid out in cash in the second quarter of 2017. The 50:50 split of the STI into a cash payment and a grant of virtual Bayer shares was made for the last time for 2015.

3

The Aspire tranche for 2016 is subject to the new system for Bayer’s Aspire program (see Chapter “Compensation of the Board of Management”). The cap for this new long-term compensation program is 250%

Fixed annual compensation

 

800

800

800

 

1,374

475

475

475

 

725

Fringe benefits

 

34

34

34

 

40

99

99

99

 

36

Total fixed annual compensation

 

834

834

834

 

1,414

574

574

574

 

761

Short-term variable cash compensation2

 

800

0

1,600

 

1,477

475

0

950

 

679

Long-term variable cash compensation (virtual Bayer shares)2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 (Jan. 1, 2016 – Dec. 31, 2018) 

 

 

1,477

 

679

2016 (Jan. 1, 2017 – Dec. 31, 2019) 

 

 

 

 

 

Long-term stock-based compensation (Aspire)3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 (Jan. 1, 2015 – Dec. 31, 2018) 

 

 

550

 

290

2016 (Jan. 1, 2016 – Dec. 31, 2019) 

 

1,623

0

4,058

 

 

964

0

2,410

 

 

Total

 

3,257

834

6,492

 

4,918

2,013

574

3,934

 

2,409

Service cost/benefit expense

 

240

240

240

 

967

382

382

382

 

211

Total compensation

 

3,497

1,074

6,732

 

5,885

2,395

956

4,316

 

2,620

Allocation of Compensation for 2015 and 2016

 

 

Serving members of the Board of Management as of December 31, 2016

 

 

Werner Baumann (Chairman)

 

Liam Condon (Crop Science)

 

Johannes Dietsch (Finance)

 

Dr. Hartmut Klusik (Human Resources, Technology & Sustainability)

 

 

Joined Jan. 1, 2010

 

Joined Jan. 1, 2016

 

Joined Sept. 1, 2014

 

Joined Jan. 1, 2016

 

 

2015

2016

 

2015

2016

 

2015

2016

 

2015

2016

 

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

1

The increased variable compensation for Werner Baumann in 2015 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 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. The same applies to the payments in 2016 from the 2012 Aspire tranche for for Johannes Dietsch and Kemal Malik.

3

The total service cost is the service cost in accordance with HGB plus contributions to pension funds.

Fixed annual compensation

 

906

1,285

 

800

 

725

750

 

750

Fringe benefits

 

47

47

 

44

 

44

83

 

140

Total

 

953

1,332

 

844

 

769

833

 

890

Short-term variable cash compensation

 

 

 

 

 

 

 

 

 

 

 

 

for 20151

 

1,237

 

 

917

 

for 2016

 

2,329

 

1,106

 

978

 

1,053

Long-term cash compensation (virtual Bayer shares)

 

 

 

 

 

 

 

 

 

 

 

 

2011 (Jan. 1, 2012 – Dec. 31, 2014)

 

1,307

 

 

 

2012 (Jan. 1, 2012 – Dec. 31, 2015)

 

 

1,747

 

 

 

Long-term stock-based cash compensation (Aspire)

 

 

 

 

 

 

 

 

 

 

 

 

2011 (Jan. 1, 2011 – Dec. 31, 2014)2

 

769

 

 

297

 

2012 (Jan. 1, 2012 – Dec. 31, 2015)

 

 

789

 

 

 

301

 

Total

 

4,266

6,197

 

1,950

 

1,983

2,112

 

1,943

Service cost / benefit expense3

 

227

764

 

330

 

220

318

 

316

Total compensation

 

4,493

6,961

 

2,280

 

2,203

2,430

 

2,259

Allocation of Compensation for 2015 and 2016 – continued

 

 

Serving members of the Board of Management as of December 31, 2016

 

Former members

 

 

Kemal Malik (Innovation)

 

Erica Mann (Consumer Health)

 

Dieter Weinand (Pharmaceuticals)

 

Dr. Marijn Dekkers

 

Michael König

 

 

Joined Feb. 1, 2014

 

Joined Jan. 1, 2016

 

Joined Jan. 1, 2016

 

Stepped down April 30, 2016

 

Stepped down Dec. 31, 2015

 

 

2015

2016

 

2015

2016

 

2015

2016

 

2015

2016

 

2015

2016

 

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

 

€ thou­sand

€ thou­sand

1

The increased variable compensation for Werner Baumann in 2015 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 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. The same applies to the payments in 2016 from the 2012 Aspire tranche for for Johannes Dietsch and Kemal Malik.

3

The total service cost is the service cost in accordance with HGB plus contributions to pension funds.

Fixed annual compensation

 

725

775

 

750

 

800

 

1,374

475

 

725

Fringe benefits

 

40

35

 

182

 

34

 

40

99

 

36

Total

 

765

810

 

932

 

834

 

1,414

574

 

761

Short-term variable cash compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for 20151

 

917

 

 

 

1,995

 

for 2016

 

1,050

 

798

 

1,274

 

 

475

 

917

Long-term cash compensation (virtual Bayer shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011 (Jan. 1, 2012 – Dec. 31, 2014)

 

 

 

 

2,841

 

2012 (Jan. 1, 2012 – Dec. 31, 2015)

 

 

 

 

3,039

 

Long-term stock-based cash compensation (Aspire)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011 (Jan. 1, 2011 – Dec. 31, 2014)2

 

384

 

 

 

1,459

 

191

2012 (Jan. 1, 2012 – Dec. 31, 2015)

 

364

 

 

 

1,495

 

Total

 

2,066

2,224

 

1,730

 

2,108

 

7,709

5,583

 

1,869

Service cost / benefit expense3

 

222

318

 

219

 

240

 

967

382

 

211

Total compensation

 

2,288

2,542

 

1,949

 

2,348

 

8,676

5,965

 

2,080