Board of Directors
The Members of the Board of Directors received a compensation package with a base amount and additional compensation for chairing one of the Board Committees. In 2010, payments to acting members of the Board of Directors of Lonza Group Ltd totaled CHF 2.503 million (2009: CHF 2.766 million), 65.96% (2009: 65.57%) of which was distributed in the form of shares. The compensation system for the Board of Directors allows the members to choose either a payment in shares or a combination of cash and shares, whereby the cash portion cannot exceed 40%.Shares granted are valued at the market price at grant date, based on the average of the last five business days of each quarter, with a discount rate of 20%. They are blocked for a period of three years and are eligible for a dividend. Directors are reimbursed for travel and other related expenses associated with the performance of their services for Lonza. Directors do not receive variable compensation.
Management Committee
One acting member of the Management Committee gave up her function in the year under review. The acting members of the Management Committee received, for their contributions and time served in 2010 CHF 5.195 million (2009: 5.264 million) in cash and additional benefits and 62 923 shares (2009: 51 817 shares), equivalent to a value of CHF 2.5 million (2009: 2.766 million).The ratio of fixed compensation to performance-related components of compensation was 123.6% (2009: 145.6%)
The highest compensation conferred on a member of the Management Committee was paid to Mr. Stefan Borgas. Mr. Borgas received CHF 1 634 593 (2009: CHF 1 272 218) paid in cash and shares to a value of CHF 891 380 (2009: CHF 891 505). This includes the shares of the LTIP, which are subject tp vesting conditions of between one and three years. The vesting of theses shares is linked to performance conditions and the value at maturity will be higher. lower or even zero.
In 2010, there were 6 members (2009: 7 members) on the Management Committee. The average number of Management Committee members during the year was 5.4 full-time equivalents (2009: 6.5 full-time equivalents). One acting member of the Management Committee gave up her function.
The members of the management committee did not receive any credits or loans in 2010 (2009: ditto). In 2010, a severance payment, based on the work contract, was made to one member of the Management Committee who gave up her function (2009: one severance payment).
The Management Committee has variable notice periods, up to a maximum of 12 months. In the case of change in control or if the company gives notice, the notice period can increase up to a maximum of 18 months. |
| Download a pdf-document of Compensation, shareholdings & loans of the Annual Report 2010. |
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