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

Total compensation of €10,830 thousand (2011: €9,370 thousand) was paid to the members of the Board of Management of LANXESS AG for fiscal 2012, comprising €7,391 thousand (2011: €6,698 thousand) in annual compensation and €2,609 million (2011: €2,264 thousand) in multi-year compensation. In addition to the compensation payments reported as expense in the consolidated financial statements for 2012, further compensation of €830 thousand for 2011 was disbursed in 2012 (2011: €408 thousand for 2010).

The multi-year compensation includes – among other amounts – payments made under the Long Term Stock Performance Plan (LTSP). 1,531,875 stock-based compensation rights were granted in 2012 (2011: 1,822,125). The fair value of these rights at the grant date was €765 thousand (2011: €910 thousand). Expenses for the LTIP and LTSP recognized in the consolidated financial statements amounted to €3,826 thousand (2011: €934 thousand).

In 2011, payments of €1,320 thousand were made to one member who left the Management Board during that year.

Details of the compensation system for members of the Board of Management and an individual breakdown of compensation are given in the “Compensation report” section of the combined management report for fiscal 2012.

In addition, service cost of €815 thousand (2011: €918 thousand) relating to defined-benefit pension plans was incurred in 2012 for members of the Board of Management as part of their compensation package. Past service cost of €860 thousand was incurred in 2011. The present value of the benefit obligation as of December 31, 2012 was €18,248 thousand (2011: €13,166 thousand).

Payments of €479 thousand (2011: €1,799 thousand) were made to former members of the Board of Management. The figure for 2011 included the above payments to one member who left the Board of Management during that year. The total obligation for former members of the Board of Management was €11,411 thousand as of December 31, 2012 (2011: €9,478 thousand).

The members of the Supervisory Board received total compensation of €1,885 thousand in 2012 (2011: €1,931 thousand). The provisions established for multi-year compensation for Supervisory Board members as of December 31, 2012 amounted to €1,800 thousand (2011: €1,500 thousand).

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

Details of the remuneration system for members of the Supervisory Board and an individual breakdown of the amounts paid are contained in the combined management report for fiscal 2012 in the section headed “Compensation report.”

No loans were granted to members of the Board of Management or the Supervisory Board in fiscal 2012 or 2011.

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