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34. Related Party Transactions

Audited information

Clariant maintains business relationships with related parties. One group consists of the associates and , of which the most important ones are described in . The most important business with these companies is the purchase of services by Clariant (e.g. energy and rental of land and buildings) in Germany and the rendering of services to the Global Amines group.

The second group of related parties is key management comprising the and the . The information required by the ordinance against excessive compensation in stock exchange-listed companies regarding the emoluments for the members of the Board of Directors and the is disclosed in the Compensation Report.

More information on the relationship with the Board of Directors is given in the (non-audited).

The third group of related parties are the pension plans of major subsidiaries. Clariant provides services to its pension plans in Switzerland, the United Kingdom, and the United States. These services comprise mainly administrative and trustee services. The total costs in 2020 of these services is CHF 1 million (2019: CHF 1 million), of which approximately half is charged back to the pension plans. The number of full-time employees corresponding to these is approximately four (2019: approximately four).

The fourth group of related parties are all companies pertaining to the SABIC group, who is a 31.5% shareholder of Clariant (see ). The most important business done with these companies is the sale and purchase of chemical products.

PAYABLES AND RECEIVABLES WITH RELATED PARTIES

in CHF m

 

31.12.2020

 

31.12.2019

Receivables from related parties

 

15

 

25

thereof from joint ventures

 

4

 

5

thereof from associates

 

4

 

7

thereof from SABIC companies

 

7

 

13

Payables to related parties

 

51

 

54

thereof to joint ventures

 

4

 

6

thereof to associates

 

47

 

44

thereof to SABIC companies

 

-

 

4

Loans to related parties

 

19

 

23

thereof to joint ventures

 

2

 

7

thereof to associates

 

17

 

16

Loans from related parties

 

1

 

–1

thereof from associates

 

1

 

–1

Guarantees to third parties on behalf of related parties1

 

 

63

thereof on behalf of joint ventures

 

 

63

1

The guarantee extended on behalf of a related party concerns a bank loan to a US

TRANSACTIONS WITH KEY MANAGEMENT

in CHF m

 

2020

 

2019

Salaries and other short-term benefits

 

9

 

8

Termination benefit

 

 

2

Post-employment benefits

 

1

 

1

Share-based payments

 

2

 

2

Total

 

12

 

13

There are no outstanding loans by the Group to any members of the Board of Directors or Executive Committee.

Joint venture

Joint ventures are all activities in which Clariant is involved with another partner. The accounting method applied for joint ventures depends on the specific conditions of the participation. View entire glossary

Executive Committee

Management body of joint stock companies; at Clariant the Executive Committee currently comprises four members. View entire glossary

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