(34) Compensation of the Board of Management and the Supervisory Board

Total compensation of €6,647 thousand (2012: €10,830 thousand) was paid to the members of the Board of Management of LANXESS AG for fiscal 2013, comprising €4,777 thousand (2012: €7,392 thousand) in short-term compensation (fixed compensation, annual bonus, benefits in kind and other), €34 thousand (2012: €830 thousand) in compensation relating to the previous year, and other long-term compensation components totaling €977 thousand (2012: €1,843 thousand) as part of the Long-Term Performance Bonus (LTPB). The total also includes compensation paid under the stock-based Long-Term Stock Performance Plan (LTSP), under which 1,564,125 compensation rights were granted in 2013 (2012: 1,531,875 rights). The fair value of these rights at the grant date was €859 thousand (2012: €765 thousand). The fair values of the LTSP rights that already existed at the start of 2013 declined significantly, which resulted in a net gain of €887 thousand from the stock-based compensation in fiscal 2013 (2012: net expense of €3,826 thousand).

Details of the compensation system for members of the Board of Management and an individual breakdown of the compensation are given in the “Compensation report” section of the combined management report for fiscal 2013.

In addition, service cost of €1,264 thousand (2012: €815 thousand) relating to defined benefit pension plans was incurred in 2013 for members of the Board of Management as part of their compensation package. The present value of the benefit obligation as of December 31, 2013 was €21,740 thousand (2012: €18,248 thousand).

The total net expense for the compensation of the members of the Board of Management in 2013 was €6,165 thousand (2012: €14,706 thousand).

The balances outstanding to members of the Board of Management totaled €4,706 thousand as of December 31, 2013 (2012: €13,157 thousand), comprising provisions of €1,653 thousand (2012: €4,714 thousand) for annual bonuses, €1,899 thousand (2012: €2,587 thousand) for the LTPB and €1,154 thousand (2012: €5,856 thousand) for the LTSP.

Payments of €308 thousand (2012: €479 thousand) were made to former members of the Board of Management. The total obligation toward former members of the Board of Management as of December 31, 2013 was €11,578 thousand (2012: €11,411 thousand).

The members of the Supervisory Board received total compensation of €1,874 thousand in 2013 (2012: €1,885 thousand), which was paid at the start of the following year. The provisions established for stock-based compensation for Supervisory Board members as of December 31, 2013 amounted to €1,800 thousand (2012: €1,800 thousand).

In addition, the employee representatives on the Supervisory Board who are on LANXESS’s payroll received compensation under their employment contracts. The amounts of these salaries represented appropriate compensation for the employees’ functions and tasks within the Group.

Details of the compensation system for members of the Supervisory Board and an individual breakdown of the amounts paid are contained in the combined management report for fiscal 2013 in the section headed “Compensation report.”

No loans were granted to members of the Board of Management or the Supervisory Board in fiscal 2013 or 2012.