Outlook to the compensation system in effect from 2021
The Board of Management compensation system at LANXESS meets regulatory requirements, fulfills the demands of various stakeholders, is appropriate, and matches the market standard. Taking particular account of LANXESS’s sustainable and strategic alignment, significant changes were implemented in the new compensation system adopted by the Supervisory Board in fiscal year 2020 and effective from 2021. In particular, both the short-term variable compensation (the Board of Management’s APP) and the long-term variable compensation (Long-Term Incentive – LTI) will each be based on two measurable targets. In addition, the proportions of short- and long-term variable compensation will in the future be determined such that the long-term compensation components outweigh the short-term ones. Another change relates to payments in the event of a change of control (CoC). The new compensation system is explained in detail below.