Investors

Share price-based compensation programs

The BASF Group’s share price-based compensation programs, or long-term incentive (LTI) programs, are cash-settled programs. If vested, the cash-settlement obligation is measured at fair value on every balance sheet date and recognized as a provision.

In 2025, the BASF Group continued offering its share price-based compensation program (LTI program), known as Strive!, which was launched in 2020. The share price-based compensation program known as “BOP” (BASF Option Program), which had existed since 1999, was offered for the last time in 2020. All option rights granted during the BOP program years remain valid until the end of their respective exercise periods.

Generally, members of the Board of Executive Directors and all senior executives are entitled to participate in the LTI programs.

Strive!

Strive! is based on a performance share plan and takes into account the achievement of strategic goals and the development of the BASF share and dividend (total shareholder return) over a period of four years.

Participation in Strive! is voluntary for senior executives and is linked to a share ownership obligation. Strive! offers rolling eligibility, without a deadline for participation. In 2025, 596 people (previous year: 628 people) were eligible to participate in Strive!. About 96% (previous year: 93%) of eligible senior executives and the members of the Board of Executive Directors participated. Unlike for senior executives, participation is not voluntary for the members of the Board of Executive Directors and is outlined in their service contracts. The same plan conditions generally apply to members of the Board of Executive Directors.

A Strive! plan includes a four-year performance period with a fixed disbursement date. A target amount is determined at the beginning of each new Strive! plan for every participant. This target amount is converted into a preliminary number of virtual performance share units (PSUs) by dividing it by the average BASF share price in the fourth quarter of the previous year. The number of PSUs that are ultimately paid out at the end of the performance period depends on the achievement of the relevant targets.

Achievement of each strategic target is calculated for each year of the four-year performance period. Upon conclusion of the performance period, the average degree of target achievement for each strategic target is equal to the arithmetic mean of the degrees of target achievement for the four years. The total target achievement for the respective Strive! plan is determined by adding the target achievement degree for the three strategic targets after having multiplied each by the corresponding weighting factor. To calculate the final number of PSUs, this weighted target achievement is multiplied by the preliminary number of PSUs. The payment amount upon conclusion of the four-year performance period is calculated by multiplying the final number of PSUs by the average BASF share price for the fourth quarter of the last year of the performance period, plus the accumulated dividend payments in the four fiscal years. The payment occurs in May of the following year and is capped at 200% of the target amount. The payment amount therefore not only reflects achievement of the strategic targets, but performance of BASF’s dividend and share price as well.

A personal investment in BASF shares is the prerequisite for participation in Strive!. Participants are required to own BASF shares amounting to a predetermined percentage of their base salary for the duration of the performance period. A set-up phase applies to first-time participants. During this period, they are required to hold a percentage of shares as their predetermined personal investment. The set-up phase for the 2025 Strive! program ends on December 31, 2028. The 2025 Strive! program has the same fundamental structure as the Strive! programs in previous years.

Fair value of PSUs and parameters used as of December 31, 2025

  Strive! program of the year
  2025 2024 2023 2022
Number of PSUs granted 1,134,952 1,050,982 925,989 674,349
Number of PSUs vested 319,325 559,591 725,306 674,349
Fair value including fluctuation / PSU (€) 43.18 49.12 34.03 43.09
Fair value excluding fluctuation / PSU (€) 48.80 53.30 35.45 43.09
Weighted target achievement (%) 108.3 108.9 66.7 77.0
Base price (€) 44.58 43.94 46.45 61.82

PSUs vested by the balance sheet date were measured at fair value. Fair value is determined based on the BASF share price of €44.43 on the balance sheet date plus expected dividend payments during the term of the program and taking into account the expected target achievement rate of the respective Strive! plan. A fluctuation rate of 4% is assumed for the fair value of senior executives’ PSUs.

The LTI provision for Strive! decreased from €109 million as of December 31, 2024, to €97 million as of December 31, 2025, due to lower fair values. The expense from the addition to provisions totaled €37 million in 2025. This was partly offset by income from the reversal of LTI provisions totaling €5 million. Of this amount, €2 million related to the disposal group for the discontinued coatings business. In 2024, BASF Group recognized an expense from the addition to provisions of €31 million. The expiry of the four-year performance period and associated payout in May for Strive! 2021 resulted in utilization of €43 million in 2025. On the basis of preliminary degrees of target achievement, a payment amount of €26 million was recognized in current provisions for the fully vested 2022 program year.

BASF Option Program (BOP)

Last UpdateFebruary 27, 2026