We want our employees to contribute to the company’s long-term success. This is why the compensation granted to vast majority of our employees includes variable compensation components, with which they participate in the success of the BASF Group as a whole and are recognized for their individual performance. The same principles basically apply for all employees worldwide. The amount of the variable component is determined by the company’s economic success (measured by the return on assets¹ of the BASF Group) as well as the employee’s individual performance. Individual performance is assessed as part of a globally consistent performance management process. In numerous BASF Group companies, employees are offered the chance to purchase shares. Our plus share program ensures employees’ longterm participation in the company’s success through incentive shares: A portion of the variable compensation can be invested in BASF shares in order to profit from BASF’s long-term development. In 2017, for example, 23,700 employees worldwide (2016: approximately 24,000) participated in the plus share program.
BASF offers senior executives the opportunity to participate in a share price-based compensation program. This longterm incentive (LTI) program ties a portion of their annual variable compensation to the longterm performance of BASF shares by making an individual investment in the company’s stock. In 2017, 92% of the approximately 1,200 people eligible to participate in the LTI program worldwide did so, investing up to 30% of their variable compensation in BASF shares.
1 To calculate variable compensation, total return on assets is adjusted for special effects.