(46) Executive Board and Supervisory Board compensation
As a matter of principle, the compensation of the Executive Board of Merck KGaA, Darmstadt, Germany, is recognized by the general partner, E. Merck KG, Darmstadt, Germany, which is not included in these consolidated financial statements. In fiscal 2021, the companies included in these consolidated financial statements did not recognize any expenses for services rendered by members of the Executive Board of Merck KGaA, Darmstadt, Germany, at these companies (2020: expenses of € 2.6 million).
Compensation of € 32.0 million was recognized for members of the Executive Board of Merck KGaA, Darmstadt, Germany, by E. Merck KG, Darmstadt, Germany, and companies included in these consolidated financial statements in fiscal 2021 (2020: € 27.4 million). This amount included fixed compensation of € 6.4 million (2020: € 5.3 million), variable compensation of € 16.0 million (2020: € 14.0 million), other compensation of € 0.4 million (2020: € 0.0 million), and additional benefits of € 0.4 million (2020: € 0.4 million). In conjunction with the standalone long-term incentive plan for the Executive Board, the structure of which is in essentially as described in Note (33) “Provisions for employee benefits”, 70,846 virtual shares, also referred to as Share Units of Merck KGaA, Darmstadt, Germany (MSUs), will potentially be available subject to the achievement of targets (December 31, 2020: 83,210 MSU). The fair value of these MSU at the grant date was € 8.8 million (December 31, 2020: € 7.7 million). The grant value was € 9.4 million (December 31, 2020: € 8.8 million). For the members of the Executive Board, expenses of € 24.0 million (2020: € 17.5 million) were recognized by the general partner E. Merck KG, Darmstadt, Germany, in fiscal 2021 in the additions to the provisions for the long-term incentive plan and a current service cost of € 2.3 million (2020: € 3.0 million) was recognized in the additions to the provisions for defined benefit pension commitments.
Payments to former members of the Executive Board and their surviving dependents are made as pension payments, as continued payment of fixed remuneration for a limited period in the event of death, as profit sharing, under the long-term incentive plan and waiting allowance for a post-contractual non-competition clause. These payments amounted to € 30.7 million in fiscal 2021 (2020: € 13.8 million). Provisions for defined benefit pension commitments amounted to € 155.1 million as of December 31, 2021 (December 31, 2020: € 177.0 million).
The compensation of the Supervisory Board in fiscal 2021 amounting to € 958.7 thousand (2020: € 870.5 thousand) consisted of a fixed portion of € 822.5 thousand (2020: € 822.5 thousand), meeting attendance fees of € 47.3 thousand (2020: € 48.0 thousand), and committee membership compensation of € 88.9 thousand (2020: € 0.0 thousand).
As in the previous year, no compensation was paid to former members of the Supervisory Board in fiscal 2021.
As in the previous year, the members of the Executive Board and the Supervisory Board did not receive any advances or loans in fiscal 2021. As in the previous year, no contingent liabilities were entered into for the benefit of these persons in fiscal 2021.
Further individualized information and disclosures, as well as a presentation of the compensation system for the members of the Executive Board and the Supervisory Board, can be found in the compensation report in the voluntary section of the combined management report.