Base Salary for Non-Managerial Employees
Base Salary for Managers
Bayer uses the Hay method to evaluate all management positions. Employee classification is based on contract levels, which are in turn allocated to salary bands. To ensure that salaries are competitive, we take part in regular market research, as well as conducting our own benchmarking.
Our employees’ base salaries are supplemented by various components related to their achievements and the company’s success. These reward employees’ ability to challenge the status quo and be forward-thinking.
STI (Short Term Incentive)
Our STI system rewards the success and achievements of our managers. This focus on performance incentivizes them to ensure that we meet, or ideally exceed, our targets for the current year. Performance is measured against three factors: firstly, the individual’s performance against their personal targets for the year; secondly, the financial results of the division in question; thirdly, the overall success of the Bayer Group.
VEZ (Variable One-Time Payment)
VEZ is the performance-related salary component for our non-managerial employees, and is the counterpart to STI. The value of the VEZ component and the lack of an individual performance assessment element differentiate it from STI. VEZ comprises three, equally-weighted components: “Group performance,” “Divisional performance,” and “Overall performance of non-managerial employees.” The payment is usually made in April. The amount of the VEZ payment depends on the success of the business and therefore varies from year to year. The better the company’s financial performance, the higher the VEZ payment.
LTI (Long Term Incentive)Our LTI compensation program – known as “Aspire” – is a global, share-based cash plan, which has a four-year term. The plan is available to employees above a specified contract level, regardless of whether they are a manager or an expert.
IPA (Individual performance award)
Bayer recognizes special contributions of individual employees or teams through the IPA. The IPA is bound to a specific achievement and aims to recognize outstanding performance in as timely a manner as possible.