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 2009 payments to acting members of the Board of Directors of Lonza Group Ltd totaled CHF 2.766 million (2008: CHF 2.629 million), 65.57% (2008: 65.93%) 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 rated 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 dividend eligible. Directors are reimbursed for travel and other related expenses associated with the performance of their services for Lonza.
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 2009 CHF 5.264 million (2008: 5.742 million) in cash and additional benefits and 51 817 shares (2008: 43 733 shares), equivalent to a value of CHF 2.766 million (2008: 3.656 million).
The highest compensation conferred on a member of the management committee was paid to Mr. Stefan Borgas. Mr. Borgas received CHF 1 272 218 (2008: CHF 1 855 722) paid in cash and shares to a value of CHF 891505 (2008: CHF 1 466 747). This includes the shares of the LTIP, and the “Bridge the Gap” plan, which are blocked between one and three years.
In 2009, there were seven members (2008: 6 members) on the management committee. The average number of management committee members during the year was 6.5 full-time equivalents (2008: 6.0 full-time equivalents). One acting member of the Management Committee has given up her function.
The members of the management committee did not receive any credits or benefits in kind in 2009 (2008: ditto). In 2009, a severance payment, based on the work contract, was made to one member of the management committee who gave up her function (2008: no severance payment).
The management Committee has variable notice periods, up to a maximum of 12 months. There is no special regulation in the event of change of control. |
| Download a pdf-document of Compensation, shareholdings & loans of the Annual Report 2009. |
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