Merck 2014 Annual Report Download - page 253

248 CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
(66) RELATED-PARTY DISCLOSURES
Related parties in respect of the Group are E. MerckKG, Darmstadt,
Germany, as well as Emanuel- Merck-Vermögens-KG, Darmstadt,
Germany, and E. Merck BeteiligungenKG, Darmstadt, Germany. In
principle, direct or indirect subsidiaries of MerckKGaA, Darmstadt,
Germany, associates of the Group, jointly controlled companies
where the Group is involved, as well as pension funds that are
classified as funded defined benefit plans in accordance with
IAS 19 are also related parties within the meaning of IAS 24.
Members of the Executive Board and the Supervisory Board of
MerckKGaA, Darmstadt, Germany, the Executive Board and the
Board of Partners of E. MerckKG, Darmstadt, Germany, as well as
close members of their families are also related parties.
As of December 31, 2014, there were liabilities by Merck
Financial Services GmbH, a subsidiary of Merck KGaA, Darmstadt,
Germany, MerckKGaA, Darmstadt, Germany, and Merck & Cie,
Altdorf, Switzerland, a subsidiary of Merck KGaA, Darmstadt,
Germany, to E. MerckKG, Darmstadt, Germany, in the amount of
€926.9 million (2013: €734.7 million) as well as by Merck Financial
Services GmbH, a subsidiary of Merck KGaA, Darmstadt, Germany,
to Merck Capital Asset Management, Malta, which is part of the
Contractual Trust Arrangement of Merck KGaA, Darmstadt, Ger-
many, and other companies of the Group and Merck Capital Asset
Management Holding, Malta, which is part of the Contractual
Trust Arrangement of Merck KGaA, Darmstadt, Germany, and oth-
er companies of the Group amounting to €0.1 million (2013: €0.2
million) and €0.0 million (2013: € 0.1 million), respectively. In
addition, as of December31, 2014, the company had receivables
from E. Merck Beteiligungen KG, Darmstadt, Germany, in the
amount of € 76.5 million (2013: € 32.5 million). The balances
result mainly from the profit transfers by Merck & Cie, Altdorf,
Switzerland, a subsidiary of Merck KGaA, Darmstadt, Germany,
to E. Merck KG, Darmstadt, Germany, as well as the reciprocal
profit transfers between MerckKGaA, Darmstadt, Germany, and
E. MerckKG, Darmstadt, Germany. They included financial pay-
ables of €501.4 million (2013: €361.9 million) which were subject
to standard market interest rates. Neither collateral nor guarantees
existed for any of the balances either in favor or to the disadvan-
tage of the Group.
From January to December 2014, MerckKGaA, Darmstadt, Ger-
many, performed services for E. MerckKG, Darmstadt, Germany,
with a value of €1.2 million (2013: €1.2 million), for Emanuel-
Merck-Vermögens-KG, Darmstadt, Germany, with a value of €0.3
million (2013: €0.4 million) and for E. Merck Beteiligungen KG,
Darmstadt, Germany, with a value of €0.3 million (2013: €0.3
million). During the same period, E. MerckKG, Darmstadt, Germany,
performed services for MerckKGaA, Darmstadt, Germany, with a
value of €0.5 million (2013: €0.5 million).
Business transactions with major subsidiaries were eliminated
during consolidation. Information on pension funds that are clas-
sified as funded defined benefit plans in accordance with IAS19
can be found under Note [49]. There were no further material
transactions with these pension funds.
From January to December 2014, there were no transactions
between companies of the Group and associates, as was the case
in 2013. As in the previous year, companies of the Group had no
receivables or liabilities vis-à-vis associates as of December 31,
2014.
There were no material transactions such as, for example, the
provision of services or the granting of loans, between companies
of the Group and members of the Executive Board or the Supervi-
sory Board of MerckKGaA, Darmstadt, Germany, the Executive
Board or the Board of Partners of E. MerckKG, Darmstadt, Germany,
or members of their immediate families.
(67) EXECUTIVE BOARD AND
SUPERVISORY BOARD
COMPENSATION
The compensation of the Executive Board of Merck KGaA,
Darmstadt, Germany, is paid by the general partner, E. MerckKG,
Darmstadt, Germany, and recorded as an expense in its income
statement. For the period from January to December 2014 fixed
salaries of €5.3 million (2013: €4.9 million), variable compensa-
tion of €18.3 million (2013: €17.6 million), and additional bene-
fits of €0.2 million (2013: €0.2 million) were recorded for mem-
bers of the Executive Board of MerckKGaA, Darmstadt, Germany.
Furthermore, additions to the provisions of E. MerckKG, Darm-
stadt, Germany, for the Long-Term Incentive Plan totaled €12.7
million (2013: €8.0 million), and additions to the pension provi-
sions of E. MerckKG, Darmstadt, Germany, include current service
costs of € 2.1 million (2013: € 2.5 million) for members of the
Executive Board of MerckKGaA, Darmstadt, Germany.
The compensation of the Supervisory Board amounting to
€882.1 thousand (2013: €847.4 thousand) consisted of a fixed
portion of €823.6 thousand (2013: €599.5 thousand), meeting
attendance compensation of €58.5 thousand (2013: €45.7 thou-
sand), as well as a variable portion of € 0.0 thousand (2013:
€202.2 thousand).
Further individualized information and details can be found in
the Compensation Report on pages 147 et seq.