Foreword
Employees and Society
Assuming responsibility for others
Bayer is one of the most respected companies in the world. This is confirmed by various international surveys such as a study published by the opinion and market research institute “Research International,” which interviewed more than 1,000 opinion leaders in 2005. There are many reasons for this positive public image, including good social benefits and a trust-based relationship with stakeholders – as well as in no small part the company’s tremendous efforts on behalf of society.
In the period under review, Bayer spun off its chemical activities and parts of its plastics business into a new company called Lanxess, which has since been listed on the stock market. This realignment of course has also had an effect on the size of the company’s workforce: On December 31, 2005, the Bayer Group employed about 93,700 people – approximately 22,000 fewer than on the same date in 2003. Nonetheless, this major change in operations was able to be undertaken largely in mutual agreement.
Remuneration and pensions: Systems harmonized throughout the Group
The systems with which we enable our employees to participate in the company’s success were further harmonized internationally in 2004 and 2005. Our staff receive a variable one-time payment or component as a share in our success. At all hierarchical levels, the budgets for these payments are dependent on the achievement of certain economic targets. By contrast, special payments that are not dependent on company earnings are being phased out step-by-step for non-managerial employees. Moreover, since 2005 our employees have been able to purchase a considerably higher number of Bayer shares at attractive discounts. At the end of 2005, about 50,000 current and retired employees held roughly two percent of the capital stock.
The Bayer company pension plan offers our employees additional pension options. We need a clearly calculable cost framework in order to maintain this social benefit over the long term, however. That’s why since 2004, we have pursued the successive conversion of our global pension plans from defined benefit to defined contribution systems. This process reached a preliminary conclusion in 2005 with conversion of the systems in the United States, Canada, Brazil and Germany.
Mission Statement: Values and leadership principles communicated
The distribution of our new Mission Statement “Bayer: Science For A Better Life” to each employee was a focus of our communication in 2004 and 2005. The goal was to familiarize all employees worldwide with the Bayer Group’s objectives, strategy and future perspectives. The values and leadership principles established in the Mission Statement have been integrated into our daily operations.
In the period under review, Bayer spun off its chemical activities and parts of its plastics business into a new company called Lanxess, which has since been listed on the stock market. This realignment of course has also had an effect on the size of the company’s workforce: On December 31, 2005, the Bayer Group employed about 93,700 people – approximately 22,000 fewer than on the same date in 2003. Nonetheless, this major change in operations was able to be undertaken largely in mutual agreement.
Remuneration and pensions: Systems harmonized throughout the Group
The systems with which we enable our employees to participate in the company’s success were further harmonized internationally in 2004 and 2005. Our staff receive a variable one-time payment or component as a share in our success. At all hierarchical levels, the budgets for these payments are dependent on the achievement of certain economic targets. By contrast, special payments that are not dependent on company earnings are being phased out step-by-step for non-managerial employees. Moreover, since 2005 our employees have been able to purchase a considerably higher number of Bayer shares at attractive discounts. At the end of 2005, about 50,000 current and retired employees held roughly two percent of the capital stock.
The Bayer company pension plan offers our employees additional pension options. We need a clearly calculable cost framework in order to maintain this social benefit over the long term, however. That’s why since 2004, we have pursued the successive conversion of our global pension plans from defined benefit to defined contribution systems. This process reached a preliminary conclusion in 2005 with conversion of the systems in the United States, Canada, Brazil and Germany.
Mission Statement: Values and leadership principles communicated
The distribution of our new Mission Statement “Bayer: Science For A Better Life” to each employee was a focus of our communication in 2004 and 2005. The goal was to familiarize all employees worldwide with the Bayer Group’s objectives, strategy and future perspectives. The values and leadership principles established in the Mission Statement have been integrated into our daily operations.
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