In 2008, the Supervisory Board again addressed in detail the standards of corporate governance applied by BASF as well as the legal framework for corporations and financial markets in Germany. This included in particular the amended German Corporate Governance Code in the version dated June 6, 2008, which was dealt with at the meeting on October 23, 2008. In particular, we discussed the implementation of the new code recommendations on board compensation, and decided to implement these.
At the meeting held December 3, 2008, the compensation system for the Board of Executive Directors was reported on in detail and the material elements of the Board of Executive Directors contracts were explained. On the basis of this and the proposal of the Personnel Committee, the Supervisory Board decided on the compensation system for the Board of Executive Directors and the significant contractual components. The Supervisory Board will review these regularly. In the dutiful opinion of the Supervisory Board, the existing compensation system does not require amendment.
In its meeting on December 3, 2008, the Supervisory Board approved the joint Declaration of Conformity by the Supervisory Board and the Board of Executive Directors in accordance with Section 161 of the German Stock Corporation Act. Furthermore, at this meeting the Supervisory Board carried out an examination of efficiency and an assessment of independence. BASF complies with the recommendations of the German Corporate Governance Code in its version of June 6, 2008, without exception. The complete wording of the Declaration of Conformity is provided in the chapter and is also available to shareholders on BASF’s website.
The compensation report containing full details on the structure and amount of the compensation for the Board of Executive Directors and the Supervisory Board, including the pension benefits of the members of the Board, can be found in the chapter .