Sustainable Conduct

Creating Attractive Working Conditions

Competitive compensation and variable pay

Our compensation system combines a basic salary reflecting performance and responsibility with elements based on the company’s success, plus extensive additional benefits. Adjustments based on continuous benchmarking make our compensation internationally competitive.

We attach great importance to equal pay for men and women, providing fair and competitive compensation and informing our employees transparently about the overall structure of their compensation.

Online Annex: A 1.4.1-7

limited assurance

Binding and transparent compensation structures

At Bayer, individual salaries are based on each employee’s personal and professional abilities and the level of responsibility assigned to them. At managerial level, this is based on uniform evaluation of all positions throughout the Group using the internationally recognized Hay method. In areas of the Group and jobs that fall within the scope of a binding collective bargaining agreement, there are no differences in pay based on gender either. This also applies for the compensation of apprentices. In the Emerging Markets and developing countries, too, compensation levels are aligned to local market conditions. In the majority of cases, full- and part-time employees at our Significant locations of operation A selection of countries that accounted for more than 80% of total Bayer Group sales in 2016 (United States, Germany, China, Brazil, Japan, France, Canada, Italy, Mexico, U.K., India, Spain, Australia, Russia, Switzerland, Poland, Turkey, Argentina and Belgium). receive the same rates of pay. The situation differs with regard to employees on temporary contracts as they are not entitled to long-term compensation components such as pension plans in some countries.

Our compensation concept also includes variable one-time payments. More than €1,400 million is earmarked for bonus awards to employees for 2016 under the Group-wide short-term incentive (STI) program. In many countries, employee stock programs enable our staff to purchase Bayer shares at a discount. We also offer senior managers throughout the Group “Aspire,” a uniform long-term compensation program based on the development of the share price.

Our personnel expenses for Continuing operations Sales and earnings reporting for continuing operations pertains only to business operations that are expected to remain in the company’s portfolio for the foreseeable future; opposite of discontinued operations.  amounted to €11,357 million in 2016 (2015: €11,176 million). The change was mainly due to salary adjustments and higher employee bonuses, which together outweighed currency effects.

Alongside attractive compensation for their work, Bayer contributes to the financial security of its present and former employees after their retirement. The present value of total pension obligations at the end of 2016 was €28,995 million. Personnel expenses in 2016 included pension expenses of €1,064 million. Payments of €1,131 million were made in 2016 to current retirees.

Personnel Expenses and Pension Obligation

 

 

2012

 

2013

 

2014

 

2015

 

2016

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

2015 figures restated; figures for 2012–2014 as last reported

1

Present value of defined benefit obligations for pensions and other post-employment benefits

Personnel expenses

 

9,194

 

9,430

 

9,693

 

11,176

 

11,357

of which pension expenses

 

681

 

897

 

834

 

1,060

 

1,064

Pension obligations1

 

22,588

 

20,682

 

27,771

 

26,809

 

28,995

Pension benefits paid

 

887

 

925

 

942

 

997

 

1,131

Work-life balance

Present and future employees attach great importance to achieving a balance between employment and their personal and family lives. In many countries our commitment in this area goes well beyond the statutory requirements. We offer our employees flexible working hours and support in child care and caring for close relatives.

In 2015, Bayer introduced uniform conditions for short-term mobile working in Germany through a new General Works Agreement with the Works Council. In addition, employees in Germany can convert part of their salary into free time through the “BayZeit” long-term account. There are similar programs in other countries as well.

In 2016, the Bayer Group had some 10,700 part-time employees, in particular in Europe. This figure represents 9% of the total headcount.

Online Annex: A 1.4.1-8

limited assurance

Percentage of Part-Time Employees by Region and Gender

 

 

Women

 

Men

 

Total

 

 

2015

2016

 

2015

2016

 

2015

2016

 

 

%

%

 

%

%

 

%

%

2015 figures restated

Europe / Middle East / Africa

 

23.0

23.8

 

11.6

12.2

 

16.0

16.7

North America

 

1.2

1.3

 

0.2

0.1

 

0.6

0.6

Asia / Pacific

 

2.1

2.6

 

0.1

0.2

 

0.8

1.1

Latin America

 

0.1

0.1

 

0.0

0.0

 

0.0

0.1

Total

 

12.7

13.5

 

6.0

6.5

 

8.5

9.1

Bayer enables both men and women to take parental leave. Since national parental leave regulations vary widely from country to country, we only compile data for our significant locations of operation. These represent a selection of countries in which we generate around 81% of our sales. 1,621 women and 687 men at these locations took parental leave in 2016. By the end of the year, around 1,583 employees on parental leave had returned to work.

Online Annex: A 1.4.1-9

limited assurance

The next table shows the number of employees who have returned after the standard statutory parental leave program of up to three years per child and Bayer’s more far-reaching “Family & Career” model (up to six years), using Germany as an example. By the end of 2016, 70.4% had returned to work. 50.6% of women and 94.2% of men who took parental leave in 2014 returned to work.

Employees Returning from Parental Leave using Germany as an Example

 

 

Women

 

Men

 

Total

 

 

%

Absolute

 

%

Absolute

 

%

Absolute

1

Includes employees who have left the company due to employer- and employee-driven terminations, severance agreements and expiration of contracts

Employees who have taken parental leave since 2014

 

54.5

1,101

 

45.5

918

 

100.0

2,019

Still on parental leave / with a dormant employment contract

 

43.5

479

 

4.8

44

 

25.9

523

Returned by 2016

 

50.6

557

 

94.2

865

 

70.4

1,422

Terminated1

 

5.9

65

 

1.0

9

 

3.7

74

The General Works Agreement on caring for close relatives helps Bayer employees in Germany to combine working with their role as carers.

Online Annex: A 1.4.1-10

limited assurance

Our employees can take up to 10 days’ paid leave to provide emergency care for family members. For longer periods, they are entitled to work part-time. During this time, their salary is topped up by drawing funds from their long-term account. Alternatively, employees who need to care for close relatives full-time can take unpaid leave for up to six months (up to one year in exceptional cases).

Initiatives to promote health and ensure safe working conditions

Our occupational health management activities include many regular preventive programs, ranging from ergonomic workplaces and stress management to incentive systems to promote healthy behavior.

Online Annex: A 1.4.1-11

limited assurance

The “Healthy at Bayer” initiative helps employees in Germany take action at work to promote their health, with offerings ranging from preventive check-ups through programs to encourage healthy eating to exercise at sports clubs supported by Bayer. Health management also includes support for treating illnesses and reintegration measures.

We have activities and programs to enhance the health and vitality of our employees in many countries. One example is “B Well” in the United States, where individual health targets are defined and programs are specially designed to achieve them. The health and personal development of employees in Mexico is supported by “Vive con Bien Estar,” a broadly based initiative by the Human Resources, Medical Services, Security and Communications units.

We aim to provide employees in all countries with access to affordable and targeted health offerings such as regular medical check-ups, sports programs, rehabilitation and on-site medical care. We also ensure safe working conditions and thus an environment where our employees can work without fear and undertake international business travel without risk. Our employee representatives are included in operational health management and are actively involved in its development.

Online Annex: A 1.4.1-12

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Binding agreements at Group level

The Bayer European Forum – which brings together management and employee representatives – has signed the Luxembourg Declaration on Workplace Health Promotion in the E.U. This involves a network of around 200 companies which aims to identify and share best practices and encourages joint measures by employers, employees and society to improve health and well-being at the workplace.

Group-wide initiatives in Germany include the General Works Agreements on lifetime working and demographic change and on addressing demographic change at nonmanagerial level at Bayer. These agreements contain measures to reduce the workload of shift workers who work regular night shifts from the age of 55 and of all other nonmanagerial employees in Germany from the age of 57. Further, they include measures to ease the return to work of nonmanagerial employees after long-term illness, and an extensive health screening program for all employees. More than 98% of those who were eligible took part in the program to reduce the workload of older employees in 2016.

Social responsibility for employees worldwide

More than 70% of Bayer employees worldwide are included in a Bayer pension plan. The benefits provided depend on the legal, fiscal and economic conditions in each country, employee compensation and years of service. Nearly all employees worldwide either have statutory health insurance or can obtain health insurance through the company.

70%

of Bayer employees have a company pension plan.

Health Insurance and Pension Coverage

 

 

Health insurance1

 

Pension plans2

 

 

2015

2016

 

2015

2016

 

 

%

%

 

%

%

2015 figures restated

1

Government or employer- / employee-funded

2

Programs to supplement statutory pension plans

Europe / Middle East / Africa

 

98

98

 

85

86

North America

 

93

99

 

99

100

Asia / Pacific

 

95

96

 

39

39

Latin America

 

95

99

 

54

57

Total

 

96

98

 

72

74

Our social responsibility is also reflected in our approach to restructuring, which includes efforts to take account of our employees’ interests. In Germany, which remains Bayer’s largest operational base with 37,000 employees, business-related dismissals are excluded through the end of 2020 for a large proportion of employees under an agreement with the employee representatives.

In 2016, the working conditions for around 61% of our employees worldwide were governed by collective or company agreements. At various country companies, the interests of the workforce are represented by elected employee representatives who have a right to be consulted on certain personnel-related decisions. The contractually agreed working hours of our employees do not exceed 48 hours a week in any country.

Online Annex: A 1.4.1-13

limited assurance

Percentage of Collective Agreements by Region1

 

 

2015

 

2016

 

 

%

 

%

Europe / Middle East / Africa

 

84

 

84

2015 figures restated

1

Percentage of employees covered by collective agreements, especially on compensation and working conditions

North America

 

5

 

5

Asia / Pacific

 

44

 

45

Latin America

 

53

 

52

Total

 

60

 

61

2,600

people with disabilities work for the Bayer Group.

Our understanding of our role as a socially responsible company includes a commitment to helping disadvantaged people. We employ some 2,600 people with disabilities in 29 countries. That is around 2% of our total workforce. 36% are female and 64% male. Most employees with disabilities work for our companies in Germany, where they made up 5.1% of the workforce in 2016.