LANXESS's stock program offers employees an opportunity to buy shares in the company at a discount. The price per share is calculated from the stock market price on a date set by the Board of Management each year around the time of the Annual Stockholders' Meeting, less a discount of 50 percent. This discount is financed by LANXESS.

LANXESS employs a fair remuneration policy that is linked to the long-term success of the company and offers employees worldwide a transparent and market-oriented compensation system.

LANXESS offers a long-term incentive program for managers in Germany and a similar program in the United States, Canada, India and China.

Long Term Incentive Plan (LTIP)/ Long Term Peformance Plan (LTSP)

LANXESS's Long Term Incentive Program started in 2005. It comprises three tranches, starting in the years 2005 - 2007. Participation in the LTIP is conditional upon each manager making a personal investment in LANXESS stock, depending on his/her base salary. Each manager's personal investment is subject to a five-year lock-up period. In each tranche of the LTIP the participants automatically receive (share-based/ non share-based) rights.

Whereas the first program comprised a share-based component (Stock Performance Plan 2005-2007) and a non-share-based component (Economic Value Plan), the subsequent programs are entirely share-based (Stock Performance Plan 2008-2010 and Stock Performance Plan 2010-2013).

The stock performance plan compares the company’s value against the Dow Jones STOXX 600 ChemicalsSM Index over a period of three years. Since participants make a personal investment and there is the chance that the stock will increase in value, the program is an attractive long-term incentive and a means of boosting employee loyalty.

For the period 2010 to 2013, the Board of Management has drawn up a new long-term incentive plan (LTIP) for LANXESS. The Long-Term Stock Performance Plan 2010-2013 (LTSP) comprises four tranches, one commencing each year. This plan also compares the company’s value against the Dow Jones STOXX 600 ChemicalsSM Index, but over a period of four years. Participation in the LTSP is also conditional upon each manager making a personal investment in LANXESS stock, depending on his/her base salary.