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 2007 payments to acting members of the Board of Directors of Lonza Group Ltd totaled CHF 2.419 million (2006: CHF 2.359 million), 68.19% (2006: 66.12%) 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
The acting members of the management committee and those who gave up their functions in the year under review received for their contributions and time served in 2007 CHF 6.813 million (2006: 7.772million) in cash and additional benefits and 51 954 shares (2006: 66 610shares), equivalent to a value of CHF 3.302 million (2006: 3.908 million).
The highest compensation conferred on a member of the management committee was paid to Mr. Stefan Borgas. Mr. Borgas received CHF 2 408 538 paid in cash and shares to a value of CHF 1 310 540. This includes the shares of the LTIP, and the “Bridge the Gap” plan, which are blocked between one and three years.
In 2007, there were seven members on the management committee. One member of them relinquished her function as of 1 June 2007 and another member was appointed by the Board of Directors as of 1 August 2007. The average number of management committee members during the year was 5.8 full-time equivalents.
The members of the Board of Directors and the management committee who gave up their functions did not receive any credits or benefits in kind.
In 2007, no severance payment was made to any member of the management committee who gave up his or her function. |
| To download a pdf-document of Compensation, shareholdings & loans of the Annual Report 2007 please click here. |
|
|
