Main features of the Executive Board compensation system
(Section 4.2.3 of the German Corporate Governance Code)
The compensation of the general partners, who comprise the Executive Board of Merck KGaA, is composed of salary payments (fixed portion), profit participation and additions to pension provisions. Profit participation is based on the rolling three-year average of profit after tax. Payments in fiscal 2007 were as follows: fixed salary €3 million, profit sharing €22 million.
Compensation of members of the Supervisory Board
(Section 5.4.7 of the German Corporate Governance Code)
Subject to the approval of the Annual General Meeting on the proposed distribution of €1.20 dividend and a one-time bonus of €2.00 per share, the compensation of the Supervisory Board in 2007 amounting to €964 thousand consists of a fixed portion of €95 thousand and a variable portion of €869 thousand.
Ownership, purchase or sale of shares in the company by members of the Executive Board and the Supervisory Board
(Section 6.6 of the German Corporate Governance Code)
As of December 31, 2007, the members of the Executive Board and the Supervisory Board held 32,275 shares. Their total ownership represents less than 1% of the issued shares of Merck KGaA.
Information on reportable transactions by members of the Executive Board and the Supervisory Board during fiscal 2007 pursuant to Section 15a of the German Securities Trading Act can be found on the Merck Web site at www.investors.merck.de under Corporate Governance -> “Reportable securities transactions”.
