6. 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 (www.clariant.com/en/Company/Corporate-Governance/Articles-of-Association) of Clariant Ltd from 1 April 2019.
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
The following graphs illustrate the relative structure and absolute value of the three components for 2021.
ANNUAL COMPENSATION OF THE BOARD OF DIRECTORS (STRUCTURAL OVERVIEW ONLY) in CHF
| Chairman of the Board | Vice-Chairman of the Board | Member of the Board of Directors | Total 2021 1 | Total 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash compensation | ||||||||||
| Honorarium 1 | 450 000 | 180 000 | 150 000 | 1 980 000 | 2 130 000 | |||||
| Committee fee 1 | According to individual activity (see table below) | 540 000 | 430 000 | |||||||
| Social contribution | ||||||||||
| Relevant amount | According to individual situation | |||||||||
| Shares | ||||||||||
| Value (at grant) 3 | 300 000 | 120 000 | 100 000 | 1 320 000 | 1 420 000 | |||||
|
1 The Honorarium and fees are paid in cash in equal parts in March and September.
|
||||||||||
|
2 For actual details for 2021, see table Annual Compensation 2021 – Emoluments to Members of the Board of Directors.
|
||||||||||
|
3 Shares will be granted at the end of the mandate year.
|
||||||||||
005RELATIVE STRUCTURE OF ACTUAL TOTAL COMPENSATION 2021 (BOARD OF DIRECTORS) IN %
The Chairman of the Board is not entitled to receive committee fees when serving as a member of a committee.
All members of the Board of Directors are asked to build up defined minimum shareholding requirements within three years from becoming a member of the Board.
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
Committee FEES IN CHF per mandate year
| Chair | Member | |||
|---|---|---|---|---|
| Nomination Committee | 50 000 | 30 000 | ||
| Audit Committee | 80 000 | 40 000 | ||
| Compensation Committee | 50 000 | 30 000 | ||
| Innovation and Sustainability Committee | 50 000 | 30 000 |
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.
2021 ANNUAL COMPENSATION – EMOLUMENTS TO MEMBERS OF THE BOARD OF DIRECTORS (Fair Market Value = FMV) in CHF
| Günter von Au 1 | Abdullah Mohammed Alissa | Hariolf Kottmann 2 | Calum MacLean | Geoffery Merszei | Eveline Saupper | Peter Steiner | Claudia Suessmuth Dyckerhoff | Susanne Wamsler | Konstantin Winterstein | Nader Alwehibi | Thilo Mannhardt | Totals 2021 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash compensation | ||||||||||||||||||||||||||
| Honorarium | 375 000 | 180 000 | 112 500 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 2 017 500 | |||||||||||||
| Additional compensation | 24 224 3 | 24 224 | ||||||||||||||||||||||||
| Committee fee | 7 500 | 30 000 | 4 | 30 000 | 40 000 | 90 000 | 110 000 | 30 000 | 52 500 | 62 500 | 22 500 | 37 500 | 512 500 | |||||||||||||
| Social contribution | ||||||||||||||||||||||||||
| Relevant amount | 25 185 | 20 391 | 31 151 | 38 382 | 13 601 | 27 171 | 19 605 | 20 668 | 17 053 | 168 463 5 | 381 670 | |||||||||||||||
| Shares | ||||||||||||||||||||||||||
| Fair market value (FMV) | 250 000 | 120 000 | 75 000 | 100 000 | 100 000 | 100 000 | 100 000 | 100 000 | 100 000 | 100 000 | 100 000 | 100 000 | 1 345 000 | |||||||||||||
| Total 2021 (Fair market value 2021) | 657 685 | 350 391 | 218 651 | 318 382 | 303 601 | 391 395 | 360 000 | 299 605 | 323 168 | 312 500 | 289 553 | 455 963 | 4 280 894 | |||||||||||||
|
1 Regular Board member until AGM April 2021. Chairman of the Board from AGM April 2021.
|
||||||||||||||||||||||||||
|
2 Chairman of the Board until exit 7 April 2021
|
||||||||||||||||||||||||||
|
3 Extra compensation for temporary additional role as independent Lead Director since 24 July 2019 until 7 April 2021
|
||||||||||||||||||||||||||
|
4 No committee member for the period January-April 2021
|
||||||||||||||||||||||||||
|
5 Incl. regular social security contributions and tax gross-up due to inexistent tax agreement between the countries
|
||||||||||||||||||||||||||
2020 ANNUAL COMPENSATION – EMOLUMENTS TO MEMBERS OF THE BOARD OF DIRECTORS (Fair Market Value = FMV) in CHF
| Hariolf Kottmann | Dr. Khaled Homza A. Nahas 1 | Abdullah Mohammed Alissa 2 | Günter von Au | Calum MacLean | Geoffery Merszei | Eveline Saupper | Carlo G. Soave 3 | Peter Steiner | Claudia Suessmuth Dyckerhoff | Susanne Wamsler | Konstantin Winterstein | Nader Alwehibi 4 | Thilo Mannhardt 4 | Totals 2020 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash compensation | ||||||||||||||||||||||||||||||
| Honorarium | 450 000 | 90 000 | 172 500 | 150 000 | 150 000 | 150 000 | 150 000 | 75 000 | 150 000 | 150 000 | 150 000 | 150 000 | 75 000 | 75 000 | 2 137 500 | |||||||||||||||
| Additional compensation | 134 482 5 | 134 482 | ||||||||||||||||||||||||||||
| Committee fee | 15 000 | 30 000 | 32 500 6 | 30 000 | 40 000 | 90 000 | 30 000 | 110 000 | 30 000 | 30 000 | 40 000 | 477 500 | ||||||||||||||||||
| Social contribution | ||||||||||||||||||||||||||||||
| Relevant amount | 49 537 | 18 513 | 20 739 | 16 682 | 33 445 | 17 013 | 35 110 | 30 114 7 | 19 672 | 19 672 | 2 894 | 30 208 8 | 293 599 | |||||||||||||||||
| Shares | ||||||||||||||||||||||||||||||
| Fair market value (FMV) 8 | 300 017 | 60 000 9 | 115 017 | 100 006 | 100 006 | 100 006 | 100 006 | 50 000 9 | 100 006 | 100 006 | 100 006 | 100 006 | 50 009 | 50 009 | 1 425 100 | |||||||||||||||
| Total 2020 (Fair market value 2020) | 799 554 | 183 513 | 338 256 | 299 188 | 313 451 | 307 019 | 509 598 | 185 114 | 360 006 | 299 678 | 299 678 | 290 006 | 127 903 | 155 217 | 4 468 181 | |||||||||||||||
|
1 Six months Deputy Chairman (exit end of June 2020)
|
||||||||||||||||||||||||||||||
|
2 Three months BoD member and nine months BoD Deputy Chairman
|
||||||||||||||||||||||||||||||
|
3 Six months BoD member (exit end of June 2020)
|
||||||||||||||||||||||||||||||
|
4 Six months BoD member (new joiner in July 2020)
|
||||||||||||||||||||||||||||||
|
5 Extra compensation for temporary additional role as independent Lead Director since 24 July 2019
|
||||||||||||||||||||||||||||||
|
6 Different committee fees for first three months vs. last nine months
|
||||||||||||||||||||||||||||||
|
7 Including additional compensation for project work
|
||||||||||||||||||||||||||||||
|
8 Tax gross up due to inexistent tax agreement between countries
|
||||||||||||||||||||||||||||||
|
9 Three months paid in cash
|
||||||||||||||||||||||||||||||
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 next table.
The compensation for members of the Board of Directors is subject to taxation and social security, depending on the individual’s situation 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.
SHARES HELD BY MEMBERS OF THE BOARD OF DIRECTORS
| Number of shares granted for 2021 1 | Number of shares granted for 2020 2 | Number of privately held shares at 31 Dec. 2021 | Number of privately held shares at 31 Dec. 2020 | |||||
|---|---|---|---|---|---|---|---|---|
| Günter von Au | 15 790 | 5 118 (correction of 5 556) | 73 981 | 68 863 | ||||
| Abdullah Mohammed Alissa | 6 316 | 6 142 (correction of 6 667) | 12 667 | 6 525 | ||||
| Nader Alwehibi | 5 263 | 3 839 (correction of 4 167) | 3 839 | 0 | ||||
| Calum MacLean | 5 263 | 5 118 (correction of 5 556) | 11 643 | 6 525 | ||||
| Thilo Mannhardt | 5 263 | 3 839 (correction of 4 167) | 3 839 | 0 | ||||
| Geoffery Merszei | 5 263 | 5 118 (correction of 5 556) | 11 643 | 6 525 | ||||
| Eveline Saupper | 5 263 | 5 118 (correction of 5 556) | 29 506 | 24 388 | ||||
| Peter Steiner | 5 263 | 5 118 (correction of 5 556) | 27 006 | 18 388 | ||||
| Claudia Suessmuth Dyckerhoff | 5 263 | 5 118 (correction of 5 556) | 24 606 | 19 488 | ||||
| Susanne Wamsler | 5 263 | 5 118 (correction of 5 556) | 1 190 298 3 | 1 185 180 3 | ||||
| Konstantin Winterstein | 5 263 | 5 118 (correction of 5 556) | 6 092 021 | 6 086 903 | ||||
| Hariolf Kottmann | 0 | 15 354 (correction of 16 667) | not applicable | 449 573 4 | ||||
| Total | 69 473 | 70 118 (correction of 76 116) | 7 481 049 | 7 872 358 | ||||
|
1 Final number of shares for the mandate year will be defined prior to grant in 2022. Underlying assumption here is a share price of CHF 19.00.
|
||||||||
|
2 Correction needed due to adjustments of final share price at grant: Underlying assumption was CHF 18.00.
Final allocation of shares with CHF 19.54; therefore, the numbers of shares differ from the overview in the Integrated Report 2020. |
||||||||
|
3 Thereof 240 271 held by the »Honoré T. Wamsler Trust«
|
||||||||
|
4 Additionally 542 shares in vesting on 31 December 2020 resulting from previous years' participation in LTI plans as CEO
|
||||||||