Note 27 – Related Parties Audited

Identity of Related Parties

The Group has a related-party relationship with associates, joint ventures (see note 7), pension and other post-retirement plans (see note 23) as well as with the Board of Directors and the members of the Executive Committee.

Transactions with Key Management Personnel

Board of Directors

In 2016 payments to acting members of the Board of Directors of Lonza Group Ltd totaled CHF 2.860 million¹ (2015: CHF 2.658 million¹), 46.53% (2015: 46.39%) of which was received in the form of shares. The Director’s fees are paid 50% in cash and 50% in shares; the value of the employer's social security contributions is added to the cash payments. The value of the granted shares is determined at the relevant market price at grant date. The shares are blocked for three years from the grant date and are eligible for a dividend. Members of the Board of Directors and their immediate relatives control 135,180 (2015: 129,815) or 0.26% (2015: 0.25%) of the voting shares of Lonza Group Ltd. None of the Directors owns shares in the Group’s subsidiaries or associates.

Executive Committee Compensation

The acting members of the Executive Committee received, for their contributions and time served in 2016, CHF 7.726 million¹ (2015: CHF 7.227 million¹) in cash and additional benefits. Share-based compensation includes 18,872 LTIP shares granted (2015: 27,930 shares), the value of share-based STIP payments, equivalent to a total value of CHF 3.390 million (2015: CHF 3.807 million). No termination benefits were paid in 2015 or 2016. 

The compensation for the Board of Directors and the Executive Committee was as follows:

million CHF 2016 2015
     
Short-term benefits² 7.904 7.598
Post-employment benefits and other benefits³ 1.351 1.054
Share-based payments 4.721 5.040
Total 13.976 13.692

The remuneration is included in “Personnel expenses” (see note 18). For additional information, please refer to the 2016 Lonza Remuneration Report.