Page 119

E_ALT_GB15_160317_online

Group Management Report Corporate Governance Environment, Safety, and Corporate Social Responsibility Consolidated Financial Statements 115 The incentive plans provide for the issuance of so-called ALTANA Equity Performance Awards (AEP rights). These are debt instruments issued by ALTANA AG whose value develops similar to the virtual value of ALTANA’s shareholders’ equity. At the beginning of each incentive plan a preliminary number of AEP rights, so-called AEP Awards, is granted to the key manage- ment members. The number of AEP Awards finally granted at the end of the plan depends on the development of the target value of the AEP rights up to the end of the plan’s term. The maximum number is limited to 150 % of preliminarily granted AEP Awards. The awards will be settled at the determined value at the end of the particular plan’s term. The pay- ment is limited to a maximum of 250 % of the value of the preliminary awards granted. The precondition for participating in the incentive plans is an initial personal investment in AEP rights, which is determined based on the key management category to which the beneficiary belongs. The participant must hold the initial personal investments for the entire duration of the plan. These AEP rights are subject to the same performance as the AEP Awards, however their increase in value is limited to a maximum 20 % per year. On December 31, 2014, at the end of the term of the AEP Tranche 2011, 22,155 AEP Awards were finally allocated which resulted in payments of € 5.6 million to beneficiaries in 2015. The following table provides the main parameters of the incentive plan: Initial fair value in € per award Awards granted End of term Tranche AEP 2012 143.71 16,059 Dec. 31, 2015 Tranche AEP 2013 214.96 11,320 Dec. 31, 2016 Tranche AEP 2014 200.21 13,405 Dec. 31, 2017 Tranche AEP 2015 309.04 9,614 Dec. 31, 2018 Total expenses recognized for all plans amounted to € 9.6 million and € 4.8 million in 2015 and 2014, respectively. The provisions amounted to € 11.5 million and € 8.0 million, as of De- cember 31, 2015 and 2014, respectively. The total initial personal investment made by the key management personnel, which is reported in other liabilities, was measured at € 5.0 mil- lion and € 4.1 million as of December 31, 2015 and 2014 (see note 26). ALTANA Profit Participation (APP) At the end of 2010 ALTANA initiated an incentive plan for employees not eligible for the AEP plan. This incentive plan allows for annual purchases of ALTANA Profit Participation Rights (APPR). The APPRs are debt instruments issued by ALTANA AG with a minimum term of four years. A basic interest rate of 3 % per year of the debt instrument is granted as well as an additional bonus interest rate if applicable. This bonus interest represents 150 % of the relative ALTANA Value Added. The latter corresponds to the excess return on capital employed (ROCE) generated by ALTANA in the respective financial year over the average cost of capi- tal. Additionally, subscribers of APPRs were granted a one-time earnings-related country-spe- cific payment.


E_ALT_GB15_160317_online
To see the actual publication please follow the link above