Employee participation, personnel costs and social benefits

Employee participation in the company’s success

For BASF, sustainable enterprise means sharing the company’s success with our employees. We want our employees to have a long-term interest in our company and we reward their personal performance. We encourage entrepreneurial thinking by implementing remuneration systems based on performance and success that follows the same basic principles for all our employees. They usually involve both fixed and variable components. The variable component is determined by two factors: the economic success of the BASF Group measured by the return on assets, and the employee’s individual performance. Employee performance is assessed in an annual review, which is compulsory in BASF SE and most companies of the BASF Group.

Share programs for employees

Our “Plus” share program helps to foster employee interest in the company’s success and business performance. The program promotes the long-term involvement of employees through incentive shares. Employees can invest varying portions of their compensation in BASF shares. In 2008, 19,452 employees worldwide purchased 974,460 shares. Since 1999, BASF has offered its senior executives the opportunity to participate in the BASF stock option program (BOP), which ties a part of remuneration to the long-term development of the BASF share price. In 2008, more than 90% of approximately 1,000 senior executives eligible participated in BOP worldwide, investing up to 30% of their variable compensation in shares.
More information can be found in the Notes

Personnel costs and social benefits

At BASF, attractive compensation for our employees comprises remuneration and social benefits. Among others, these include a company pension plan, supplementary health insurance, and a share program. In 2008, the BASF Group spent €6,364 million on wages and salaries, social security contributions, pension contributions and assistance, 4.3% less than in 2007, due in particular to lower expenses for the BASF Options Program and for variable compensation.