(46) Executive Board and Supervisory Board compensation
The compensation of the Executive Board of Merck KGaA, Darmstadt, Germany, is recognized by the general partner, E. Merck KG, Darmstadt, Germany, which is not included in these consolidated financial statements. It was composed as follows:
€ million |
|
2022 |
|
2021 |
|---|---|---|---|---|
Fixed compensation |
|
6.3 |
|
6.4 |
Variable compensation |
|
17.7 |
|
16.0 |
Other compensation |
|
0.4 |
|
0.4 |
Additional benefits |
|
0.2 |
|
0.4 |
Fair value of the virtual shares held out in prospect under the long-term incentive plan at the grant date |
|
5.8 |
|
8.8 |
Total compensation granted in the fiscal year |
|
30.4 |
|
32.0 |
In conjunction with the standalone long-term incentive plan for the Executive Board, the structure of which is essentially as described in Note (33) “Provisions for employee benefits”, 43,436 virtual shares, also referred to as Share Units of Merck KGaA, Darmstadt, Germany (MSU), were made potentially available in fiscal 2022 subject to the achievement of targets (2021: 70,846 MSU). The additions to provisions for the long-term incentive plan included expenses of € 6.4 million (2021: € 24.0 million).
In fiscal 2022, the general partner, E. Merck KG, Darmstadt, Germany, recognized a current service cost of € 2.4 million in the additions to the provisions for defined benefit commitments for post-employment benefits for the members of the Executive Board (2021: € 2.3 million).
Payments to former members of the Executive Board and their surviving dependents are made as pension payments, as continued payment of fixed remuneration for a limited period in the event of death, as profit sharing, under the long-term incentive plan and waiting allowance for a post-contractual non-competition clause. These payments amounted to € 21.7 million in fiscal 2022 (2021: € 30.7 million). Provisions for defined benefit pension commitments amounted to € 123.1 million as of December 31, 2022 (December 31, 2021: € 155.1 million).
The compensation of the Supervisory Board was composed as follows:
€ thousand |
|
2022 |
|
2021 |
|---|---|---|---|---|
Fixed portion |
|
814.9 |
|
822.5 |
Meeting attendance fees |
|
48.0 |
|
47.3 |
Committee membership compensation |
|
105.0 |
|
88.9 |
Total compensation granted in the fiscal year |
|
967.9 |
|
958.7 |
As in the previous year, no compensation was paid to former members of the Supervisory Board in fiscal 2022.
As in the previous year, the members of the Executive Board and the Supervisory Board did not receive any advances or loans in fiscal 2022. As in the previous year, no contingent liabilities were entered into for the benefit of these persons in fiscal 2022.
Further individualized information and disclosures, as well as a presentation of the compensation system for the members of the Executive Board and the Supervisory Board, can be found in the compensation report in the voluntary section of the combined management report.