Note 28 – Related Parties Audited

Identity of Related Parties

 

The Group has a related-party relationship with associates, joint ventures (see note 8), pension and other post-retirement plans (see note 24) as well as with the Board of Directors and the members of the Executive Committee.

Transactions with Key Management Personnel

Board of Directors

 

In 2017 payments to acting members of the Board of Directors of Lonza Group Ltd totaled CHF 2.884 million¹ (2016: CHF 2.860 million¹), 47.99% (2016: 46.53%) of which was received in the form of shares. The Directors' 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 vest three years after the date of grant and are eligible for a dividend. Members of the Board of Directors and their immediate relatives control 166,736 (2016: 135,180) or 0.22% (2016: 0.26%) 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 2017, CHF 9.511 million¹ (2016: CHF 7.726 million¹) in cash and additional benefits. Share-based compensation includes 17,805 LTIP shares granted (2016: 18,872 shares), the value of share-based STIP payments, equivalent to a total value of CHF 4.459 million (2016: CHF 3.390 million). No termination benefits were paid out in 2016 or 2017. 

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

million CHF 2017 2016
     
Short-term benefits² 9.469 7.904
Post-employment benefits and other benefits³ 1.542 1.351
Share-based payments 5.843 4.721
Total 16.854 13.976


The remuneration is included in “Personnel expenses” (see note 19). For additional information, please refer to the 2017 Lonza Remuneration Report.