2 – Compensation Components

The compensation of Lonza employees includes the following components (total compensation):

2.1 Base Pay  

The base pay of Lonza employees is established by assessing the scope of the job within the context of the relevant market, as well as individual performance. The base pay should be in general comparable with the median of similar positions in the pharmaceutical, chemical and general industries. Potential increases in base pay are evaluated on a regular basis and are typically based on relevant market economic developments, benchmarks and the employee’s performance.

2.2 Variable Compensation  

The variable compensation is designed to provide employees with the opportunity to participate in the company’s overall success and earn a competitive total compensation. The majority of employees participate in a short-term incentive plan (STIP). Senior management and key employees also participate in a long-term incentive plan (LTIP). The guiding principle for these plans is to motivate, reward and retain employees for the company’s short-term and long-term financial success.

2.3 Benefits  

The benefits programs are specified by country, taking into consideration local legislation as well as competitive market practices within our industry. Benefit packages are reviewed on a regular basis.