5. Structure of Compensation for Members of the Board of Directors
The compensation structure for members of the Board of Directors follows the compensation concept outlined in the Articles of Association of Clariant Ltd from 24 March 2014, or 16 October 2018 for the performance year 2018.
According to Art. 26, remuneration of members of the Board of Directors consists of the following components:
- Annual basic fee (Honorarium)
- Committee membership fees
- Share-based remuneration
Effective 16 October 2018, the Board of Directors approved amended compensation levels. The following graphs illustrate the relative structure and absolute value of the three components for 2018.
|
Chairman of the Board |
Vice-Chairman of the Board |
Member of the Board of Directors |
Total 2018 |
Total 2017 |
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Cash compensation |
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|
|
|
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Honorarium1(until 15 October/ |
300 000/ |
200 000/ |
100 000/ |
1 406 250 |
1 200 000 |
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Committee fee1 |
According to individual activity (see table below) |
738 750 |
770 000 |
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Social contribution |
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Relevant amount |
According to individual situation2 |
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|
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Shares |
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Value (at grant)3(until 15 October/effective 16 October) |
200 000/ |
150 000/ |
100 000/ |
1 057 083 |
1 050 000 |
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According to the amended compensation regulation, the Chairman of the Board is no longer entitled to receive committee fees when serving as a member of a committee. Furthermore, all Board of Directors members are asked to build up defined minimum shareholding requirements within three years from becoming a member and to hold them during the entire term of Board of Directors membership.
The shareholder requirements are:
- Chairman of the Board of Directors: 30 000 shares
- Vice-Chairman of the Board of Directors: 15 000 shares
- Members of the Board of Directors: 12 000 shares
|
Chair |
Member |
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Chairman’s Committee |
120 000 |
60 000 |
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Audit Committee |
80 000 |
40 000 |
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Compensation Committee |
60 000 |
30 000 |
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Technology & Innovation Committee1 |
60 000 |
30 000 |
|
Chair |
Member |
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|
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Nomination Committee |
50 000 |
30 000 |
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Audit Committee |
80 000 |
40 000 |
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Compensation Committee |
50 000 |
30 000 |
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005 RELATIVE STRUCTURE OF ACTUAL TOTAL COMPENSATION 2018 (BOARD OF DIRECTORS) in % of total compensation
In order to fulfill the reporting needs outlined in the Ordinance against Excessive Compensation (OaEC), the relevant Fair Market Value (FMV) figures as earned by the Board of Directors members for the calendar year are disclosed in the following audited table.
|
Rudolf Wehrli |
Günter von Au |
Peter Chen |
Hariolf Kottmann1 |
Eveline Saupper |
Carlo G. Soave |
Peter Steiner |
Claudia Suessmuth Dyckerhoff |
Susanne Wamsler |
Konstantin Winterstein |
Abdullah Mohammed Alissa |
Calum MacLean |
Geoffrey Merszei |
Dr. Khaled Homza A. Nahas |
Totals 2018 |
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Cash compensation |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Honorarium |
250 000 |
189 583 |
83 333 |
93 750 |
110 417 |
110 417 |
110 417 |
110 417 |
110 417 |
110 417 |
31 250 |
31 250 |
31 250 |
37 500 |
1 410 417 |
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Committee fee |
125 000 |
117 500 |
50 000 |
0 |
74 167 |
137 500 |
133 750 |
6 250 |
36 250 |
40 000 |
6 250 |
6 250 |
8 333 |
6 250 |
747 500 |
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Social contribution |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Relevant amount |
49 391 |
28 610 |
22 840 |
12 500 |
18 705 |
51 0712 |
0 |
13 795 |
15 899 |
0 |
4 667 |
8 750 |
4 833 |
5 500 |
236 561 |
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Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Fair market value (FMV) |
116 6673 |
139 583 |
58 3333 |
62 500 |
100 000 |
100 000 |
100 000 |
100 000 |
100 000 |
100 000 |
20 833 |
20 833 |
20 833 |
25 000 |
1 064 583 |
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Total 2018 (Fair market value 2018) |
541 058 |
475 277 |
214 507 |
168 750 |
303 288 |
398 988 |
344 167 |
230 462 |
262 566 |
250 417 |
63 000 |
67 083 |
65 250 |
74 250 |
3 459 060 |
|
Rudolf Wehrli |
Günter von Au |
Peter Chen |
Hariolf Kottmann1 |
Eveline Saupper |
Carlo G. Soave |
Peter Steiner |
Claudia Suessmuth Dyckerhoff |
Susanne Wamsler |
Konstantin Winterstein |
|
|
|
|
Totals 2017 |
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Cash compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Honorarium |
300 000 |
200 000 |
100 000 |
0 |
100 000 |
100 000 |
100 000 |
100 000 |
100 000 |
100 000 |
|
|
|
|
1 200 000 |
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Committee fee |
150 000 |
130 000 |
60 000 |
0 |
70 000 |
150 000 |
140 000 |
0 |
30 000 |
30 000 |
|
|
|
|
760 000 |
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Social contribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Relevant amount |
39 164 |
28 610 |
18 004 |
0 |
18 705 |
32 3442 |
23 616 |
13 795 |
15 899 |
0 |
|
|
|
|
190 137 |
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Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Fair market value (FMV)4 |
200 022 |
150 004 |
100 011 |
0 |
100 011 |
100 011 |
100 011 |
100 011 |
100 011 |
100 011 |
|
|
|
|
1 050 103 |
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Total 2017 (Fair market value 2017)4 |
689 186 |
508 614 |
278 015 |
0 |
288 716 |
382 355 |
363 627 |
213 806 |
245 910 |
230 011 |
|
|
|
|
3 200 240 |
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In both years there were no payments to former members of the Board of Directors after the mandate year nor were any loans or credits outstanding and/or granted.
The information about the actual share ownership of the Board of Directors is displayed in the following table.
|
Number of shares granted for 20181 |
Number of shares granted for 20172 |
Number of privately held shares at |
Number of privately held shares at |
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|
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Hariolf Kottmann |
6 8753 |
—4 |
404 2675 |
—6 |
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Günter von Au |
6 354 |
5 962 (correction of 6 000) |
58 507 |
52 212 |
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Eveline Saupper |
5 000 |
3 975 (correction of 4 000) |
15 309 |
11 334 |
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Carlo G. Soave |
5 000 |
3 975 (correction of 4 000) |
36 063 |
32 088 |
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Peter Steiner |
5 000 |
3 975 (correction of 4 000) |
9 309 |
5 334 |
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Claudia Suessmuth Dyckerhoff |
5 000 |
3 975 (correction of 4 000) |
10 409 |
6 434 |
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Susanne Wamsler |
5 000 |
3 975 (correction of 4 000) |
976 7417 |
969 5167 |
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Konstantin Winterstein |
5 000 |
3 975 (correction of 4 000) |
6 077 824 |
6 019 849 |
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Abdullah Mohammed Alissa |
2 292 |
— |
— |
— |
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Calum MacLean |
2 292 |
— |
— |
— |
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Geoffery Merszei |
2 292 |
— |
— |
— |
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Dr. Khaled Homza A. Nahas |
2 750 |
— |
— |
— |
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former Board of Directors Members8 |
— |
11 925 (correction of 12 000) |
— |
107 414 |
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Total |
52 855 |
41 737 (correction of 42 000) |
7 588 429 |
7 204 181 |
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The compensation for members of the Board of Directors is subject to the Swiss taxation and social security laws, with Clariant paying the employer contributions as required. The members of the Board of Directors do not receive any lump-sum reimbursement of entertainment expenses above and beyond actual expenditure on business trips. For additional information on the Board of Directors, refer to Note 14 of the Notes to the 2018 Financial Report of Clariant Ltd.