After adjustments of the compensation packages for EC members in 2016 based on results of benchmarking studies, the Compensation Committee did not propose any changes to the EC compensation for 2017. Thus, 2017 compensation packages remained unchanged.

The EC participates in the same compensation elements as Clariant’s senior managers. Accordingly, they receive a fixed annual base salary, an annual cash bonus (GMBP) and long-term incentives (GSM-LTIP, PSU). The annual bonus is based on achieved results for the particular financial year and payout is capped at 100% target value. For details of the respective plans please refer to chapter Overview of Existing Incentive Plans.

The members of the EC participate in the pension plans of the Clariant Group, notably the Clariant pension fund with an insured income of up to CHF 200 000 per annum, and the management pension fund with an insured income of up to a further CHF 646 000 per annum. The maximum insured income under the pension plans therefore stands at CHF 846 000 per annum. The CEO participates in Clariant’s pension and insurance plans. Additional pension provisions are accrued over time in order to match contractually granted retirement plans.

Clariant’s pension plans conform with the legal framework of the occupational pension scheme (BVG). In the future, the maximum contribution will be dynamically aligned with art. 79c BVG. For members of the EC and all other Clariant employees, the insured income is defined as the base salary plus 50% of target cash bonus. Equity-linked income components are not subject to pensionable income. The usual term insurance policies for death and disability form part of Clariant’s pension plans. The total employer contribution is approximately 11% of the insured income in the case of the Clariant pension fund, and 22% of the insured income in the case of the Clariant management pension fund. These contributions cover both the contributions to the formation of retirement capital, and the risk components. Under IFRS, the Clariant pension fund is a defined benefit plan. The management pension fund provides the members with retirement capital upon retirement. Pension payments are only accepted in exceptional cases.

In accordance with the reporting requirements outlined in the Ordinance against Excessive Compensation (OaEC), the relevant Fair Market Value (FMV) figures are shown in the following audited table.

In 2016, Clariant had to make contractual payments to leaving members of the Executive Committee. In 2017, there were no such payments. In both years there were no loans or credits outstanding and/or granted.

The total compensation of the Executive Committee in 2017 sums up to CHF 12.9 million and is within the approved budget of CHF 16.6 million.

This compensation budget for 2017 was approved at the Annual General Meeting in 2016.

Information about the actual share ownership of the members of the Executive Committee is listed below. No options were granted in 2017 or were held at 31 December 2017.