BASF Report 2021 Management’s Report – We Value People and Treat Them with Respect 102 and takes into account the development of the total shareholder BASF Group personnel expenses Regional initiatives specifically address the needs of our employees return. It incentivizes the achievement of strategic growth, profit- Million € at a local level. For example, flexible co-working spaces in the ability and sustainability targets. To take part in this program, partici - 2021 2020 +/– Rhine-Neckar region in Germany were tested in pilot projects and a pants must hold BASF shares, the amount of which is based on Wages and salaries 8,847 8,416 +5.1% framework for potential future uses was developed. their individual fixed compensation. In 2021, around 91% of the Social security contributions and assistance 1,519 1,424 +6.7% people eligible to participate in the LTI around the world did so, expenses Our Work-Life Management employee center in Ludwigshafen, holding between 30% and 70% of their fixed annual compensation Pension expenses 732 736 –0.5% Germany, (LuMit) offers a number of services under one roof: child- in BASF shares. Total personnel expenses 11,097 10,576 +4.9% care, fitness and health, and social counseling and coaching offered by BASF Stiftung. Services were adapted so they could continue The share price-based compensation program (BASF Option Pro- during the coronavirus pandemic based on the current coronavirus gram, BOP), which had existed since 1999, was offered for the last Balancing personal and professional life laws and local restrictions. We also provide employee assistance time in 2020. Around 87% of the people eligible to participate in the programs at other sites in Germany and around the world to help program around the world did so, investing up to 30% of their Our identity as an employer includes our belief in supporting our employees overcome difficult life situations and maintain and restore actual variable compensation (for the 2019 business year) in BASF employees in balancing their personal and professional lives. We their employability. Social counseling and coaching also enabled shares. want to strengthen their identification with the company and our employees and their families to receive extensive support during For more information on share-price based compensation programs and BASF’s share programs, see position in the global competition for qualified personnel. To achieve the coronavirus pandemic, for example by expanding telephone the Notes to the Consolidated Financial Statements from page 280 onward this, we have a wide range of offerings aimed at employees services. For more information on the compensation of the Board of Executive Directors and the Supervisory in different phases of life that accommodate the growing demand Board, see the Compensation Report at basf.com/compensationreport for flexibility in when and where they work. These include flexible working hours, part-time employment, remote working, and time off Dialog with employee representatives Personnel expenses options that provide the necessary flexibility to care for children or family members. We are constantly working to expand these options Trust-based cooperation with employee representatives is an The BASF Group’s expenses for wages and salaries, social security and increasingly support the effective use of digital solutions here. important component of our corporate culture. Our open and con- contributions and assistance, as well as for pensions in 2021 totaled tinual dialog lays the foundation for balancing the interests of the €11,097 million. In 2020, these expenses amounted to €10,576 mil- Our flexible tools proved helpful during the coronavirus pandemic. company and its employees, even in challenging situations. In the lion and included personnel expenses from the disposal group for They help our employees to master the increased challenges around case of organizational changes or if restructuring leads to staff the construction chemicals business in the amount of €291 million work and personal life during the pandemic and will continue to downsizing, for example, or in the case of codetermination-relevant until the date of the divestiture. The rise in personnel expenses in provide flexibility. To integrate the positive experiences from the topics, we involve employee representatives at an early stage to 2021 was mainly due to higher bonus provisions. Particularly the surge in remote working into our working culture, we have devel- develop socially responsible implementation measures. In 2021, this lower average number of employees had an offsetting impact. oped global guiding principles and a framework for the future of happened in connection with the planned organizational realign- work (see box on page 101). ment of research, for example. Our actions are aligned with the respective legal regulations and the agreements reached, as well as opera tional conditions. The organizational protective measures taken during the coronavirus pandemic to date are backed by our employee representatives.