Merck 2008 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2008 Merck annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

67
CORPORATE GOVERNANCE
3. Contrary to section 5.4.1 sentence 2, no age limit is taken into account when propos-
ing the election of Supervisory Board members. The age of Supervisory Board mem-
bers is not a criterion for their qualifications and competence. Moreover, the many
years of experience of Supervisory Board members should not be dispensed with.
4. Contrary to section 5.4.6 (3), the remuneration paid to the members of the Supervisory
Board is not reported individually. The amount of compensation received by the
members of the Supervisory Board can be calculated in accordance with the Articles
of Association of Merck KGaA, making a separate disclosure unnecessary.
Main features of the Executive Board remuneration system
(section 4.2.5 of the German Corporate Governance Code)
The compensation of the general partners, who comprise the Executive Board of
Merck KGaA, is composed of salary payments (fixed portion), profit participation and
additions to pension provisions. Profit participation is based on the rolling three-year
average of profit after tax. Payments in fiscal 2008 were as follows: fixed salary
€ 2.4 million, profit sharing € 9.9 million.
Remuneration of Supervisory Board Members
(Section 5.4.6 of the German Corporate Governance Code)
Subject to the approval of the Annual General Meeting on the proposed distribution
of a dividend of € 1.50 per share, the remuneration of the Supervisory Board in 2008
amounting to € 586 thousand consists of a fixed portion of € 116 thousand and a vari-
able portion of € 470 thousand.
Ownership, purchase or sale of shares in the company by members
of the Executive Board and the Supervisory Board
(Section 6.6 of the German Corporate Governance Code)
As of December 31, 2008, the members of the Executive Board and the Supervisory
Board held 17,337 shares. Their total ownership represents less than 1% of the issued
shares of Merck KGaA.
Information on reportable transactions by members of the Executive Board and the
Supervisory Board during fiscal 2008 pursuant to Section 15a of the German Securi-
ties Trading Act can be found on the Merck Web site at www.merck.de/investors –>
Corporate governance.
Board of Partners of E. Merck KG
Dr. Frank Stangenberg-Haverkamp, Chairman
Jon Baumhauer, Vice Chairman | Karl-Heinrich Kraft
Prof. Dr. Dr. h.c. Rolf Krebs | Albrecht Merck | Dr. Arend Oetker
Dr. Norbert Schweickert | Prof. Dr. Theo Siegert | Prof. Dr. Wilhelm Simson