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Renumeration and benefits

Our remuneration policy offers fair and competitive remuneration worldwide, chiefly based on relevant external benchmarks, level of professional experience and quality of work, regardless of the gender of the employees. 

We regularly reassess the fixed annual salary of our nonpay-scale employees on the basis of these factors in our annual salary review. Salary increases for our pay-scale employees follow the applicable collective agreements, likewise regardless of gender. The remuneration ratio of women and men is reviewed regularly and analyzed including other factors.

Gender pay gap analysis

The difference between the average remuneration for men and women at LANXESS is less than ± 6% for all individual levels. These salary differences are influenced by further, non-gender-specific variables – such as:

  • professional experience,
  • salary differences due to geography or function,
  • or differing work histories.

When the wage gap is broken down by age group – as a proxy variable for professional experience – the difference between men and women is usually even smaller. The goal of our HR policy is to have no differences in pay on the basis of gender. Our Diversity & Inclusion measures also contribute to this.

BONUS SYSTEMS

As part of the transparent remuneration in line with market conditions, LANXESS offers its employees bonus systems geared toward the company’s long-term success.

APP

 

The central performance-based compensation component is the Annual Performance Payment (APP), which we provide above the pay scale and in most countries within the pay scale on top of fixed pay. This bonus payment is linked to our key controlling indicator, so requires the Group’s attainment of a defined EBITDA target. Further individual targets in areas such as safety and sustainability additionally apply to top management.

IPP

 

With the Individual Performance Payment (IPP), managers can also reward employees’ extraordinary individual achievements during the year in a prompt and unbureaucratic way.IPP With the Individual Performance Payment (IPP), managers can also reward employees’ extraordinary individual achievements during the year in a prompt and unbureaucratic way.

LTSP

 

In addition, we offer a long-term incentive program for our managers in Germany. There are similar programs in the U.S. and India. The Long-Term Stock Performance Plan (LTSP) consists of four tranches commenced each year and tracks the performance of the LANXESS share compared with the FTSEurofirst 300 Eurozone Chemicals Index, over a period of four years in each case. In addition, there is a Share Ownership Guideline for the Board of Management and our top-level managers. This guideline emphasizes trust in the strategy and long-term success of LANXESS. 

Provision

Another core element of our offering is the company pension plan for plugging potential gaps in provision in old age. The design of the company pension plan differs from country to country depending on the state pension system. LANXESS’s pension commitments often go beyond what is required by law. They are funded by employer and/ or employee contributions. In Germany, employees can voluntarily increase their pension and receive an additional grant from LANXESS.