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. This includes, among other things, the uniform evaluation of all managerial positions throughout the Group.

We attach great importance to equal pay for men and women, providing fair compensation and informing our employees transparently about the overall structure of their compensation. Bayer voluntarily pays employees on both permanent and temporary employment contracts in excess of the statutory minimum wage in many of the countries in which we operate.

Our compensation concept also includes variable one-time payments. Approximately €640 million is earmarked for bonus awards to employees for 2017 under the Group-wide short-term incentive (STI) schließen Short Term Incentive program (STI program) is the variable income component for all managerial staff. Employees taking part in the program share in the company’s success of the past year in line with a uniform model that applies across the Group. program (2016: approximately €1,070 million for employees in continuing operations schließen 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. ). 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 amounted to €9,528 million in 2017 (2016: €9,459 million). The change was mainly due to expenses related to compensation adjustments, while bonus payments were considerably lower.

Alongside attractive compensation for their work, Bayer contributes to the financial security of its present and former employees after their retirement. Personnel expenses in 2017 included pension expenses of €933 million. Payments of €1,051 million were made in 2017 to current retirees. The value of total pension obligations at the end of 2017 was €24,492 million.

Work-life balance

We offer our employees flexible working hours and support in child care and caring for close relatives. In many countries our commitment in this area goes beyond the statutory requirements.

In 2017, the Bayer Group had some 9,100 part-time employees, primarily in Europe. This figure represents 9% of the total number of employees.

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. 1,639 women and 950 men at these locations took parental leave in 2017. By the end of the year, 1,977 employees on parental leave had returned to work.

Bayer has introduced uniform conditions for mobile working (home office) in Germany through a General Works Agreement with the Works Council. Through the “BayZeit” long-term account in Germany, employees can convert part of their salary into free time, which they can later take off to care for children or close family members, or to take part in an advanced training course, for example. In 2017, this program was expanded to include offerings for trainees and family leave.

The General Works Agreement on caring for close relatives helps Bayer employees in Germany to combine working with their role as carers through adapted worktime models and temporary paid leave.

Initiatives to promote health and ensure safe working conditions

In 2017, Bayer adopted a new global framework concept to promote employee health and quality of life (BeWell@Bayer). It expands the core aspect of health into a comprehensive approach, targets further improvements in the daily work environment and is intended particularly to help balance employees’ professional and private lives. 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.

Our occupational health management activities include many regular preventive programs, ranging from ergonomic workplaces and stress management to incentive systems to promote healthy behavior. Established offerings such as the program to reduce the workload of older employees have been extended until 2020. Our employee representatives are included in operational health management and are actively involved in its development. We ensure safe working conditions and thus an environment where our employees can work without fear and undertake international business travel without risk.

Social responsibility for employees worldwide

A company pension plan is available to 75% of Bayer employees worldwide. The benefits provided depend on the legal, fiscal and economic conditions in each country, employee compensation and years of service. Almost 98% of our employees worldwide either have statutory health insurance or can obtain health insurance through the company.

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 31,620 employees, business-related dismissals are excluded through the end of 2020 for a large proportion of employees under an agreement with the employee representatives.

Employees at all Bayer sites around the world have the right to elect their own representatives. In 2017, the working conditions for around 63% 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.