24 Related Party Disclosures

IAS 24 stipulates that parties which control, or are controlled by, Wacker Chemie AG must be disclosed unless they are already included in Wacker Chemie AG’s consolidated financial statements as a consolidated company. Control in this sense is held to apply when a shareholder has more than half of the voting rights in Wacker Chemie AG or, by virtue of provisions in the Articles of Association or contractual arrangements, has the possibility of controlling the financial and business policy of the WACKER Group’s Executive Board.

In the year under review, the WACKER Group is affected by the disclosure obligations under IAS 24 only in respect of the business relations with Wacker Chemie AG’s major shareholders and its Executive and Supervisory Board members. The provisions of IAS 24 also apply to all transactions with non-consolidated subsidiaries, associated companies and joint ventures since Wacker Chemie AG exercises significant influence over them.

The WACKER Group is controlled by its majority shareholder, Dr. Alexander Wacker Familiengesellschaft mbH, which holds over 50 percent of the voting shares in Wacker Chemie AG. Provision of services between Wacker Chemie AG and its majority shareholder Dr. Alexander Wacker Familiengesellschaft mbH is of subordinate importance. Furthermore, WACKER Group companies did not conduct any significant transactions whatsoever with members of Wacker Chemie AG’s Executive or Supervisory Board or with any other key management personnel or with companies of which these persons are members of executive or supervisory bodies. The same applies to close relatives of the aforementioned persons.

Dr. Alexander Wacker Familiengesellschaft mbH, Munich, informed Wacker Chemie AG on June 7, 2006, that it holds over 50 percent of the voting shares in Wacker Chemie AG. Blue Elephant Holding GmbH, Pöcking, informed Wacker Chemie AG on April 12, 2006, that it holds over ten percent of the voting shares in Wacker Chemie AG.

In fiscal 2010, no cases of voting-share reporting thresholds being exceeded were reported. Further detailed information has been published in the German register of companies. www.unternehmensregister.de

Business with non-consolidated subsidiaries, joint ventures and associated companies is, as a rule, carried out on conditions that are customary between outside third parties. For joint-venture and associated-company product shipments, contractually agreed transfer-price formulas were defined that contain, e.g., start-up costs and financing elements. The following table shows the volume of trade receivables with related parties, which are reported in the WACKER consolidated financial statements using the equity method or recognized in the statement of financial position at amortized cost:

  download table

Related Party Disclosures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

2010

 

2009

 

 

Income

 

Expenses

 

Trade
receivables

 

Liabilities

 

Income

 

Expenses

 

Trade
receivables

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Associated companies/
joint ventures

 

89.2

 

-76.2

 

18.2

 

-2.4

 

116.2

 

-10.5

 

24.0

 

-1.8

Non-consolidated subsidiaries

 

 

-0.2

 

0.2

 

 

0.1

 

-0.4

 

0.4

 

-0.1

The transactions in question concern supplies and services during the normal course of business in connection with sales revenue, license revenue and administrative expense allocations. Related parties submitted invoices for material purchases and commissions. Any guarantees or other securities are reported under other financial obligations. See Note 17

Information Regarding Compensation of the Supervisory and Executive Boards:

  download table

1

Pensions include the interest cost as well as the service cost.

Compensation for the Executive and Supervisory Boards

 

 

 

 

 

 

 

 

 

Fixed
compensation

 

Variable
compensation

 

Pensions1

 

Total

 

 

 

 

 

 

 

 

 

Executive Board compensation 2010

 

2,597,871

 

4,176,000

 

1,511,168

 

8,285,039

Executive Board compensation 2009

 

2,588,600

 

1,540,582

 

1,318,182

 

5,447,364

 

 

 

 

 

 

 

 

 

Pension commitments for active members of the Executive Board 2010

 

 

 

 

 

 

 

17,433,247

Pension commitments for active members of the Executive Board 2009

 

 

 

 

 

 

 

14,707,726

 

 

 

 

 

 

 

 

 

Expenses for former members of the Executive Board and their surviving dependents 2010

 

 

 

 

 

 

 

791,559

Expenses for former members of the Executive Board and their surviving dependents 2009

 

 

 

 

 

 

 

791,510

 

 

 

 

 

 

 

 

 

Pension commitments for former members of the Executive Board and their surviving dependents 2010

 

 

 

 

 

 

 

19,179,121

Pension commitments for former members of the Executive Board and their surviving dependents 2009

 

 

 

 

 

 

 

18,702,075

 

 

 

 

 

 

 

 

 

Supervisory Board compensation 2010

 

717,000

 

656,250

 

 

 

1,373,250

Supervisory Board compensation 2009

 

717,000

 

 

 

 

717,000


Detailed information about Executive Board compensation is contained in the compensation report. The compensation report is part of the management report. German commercial law (HGB) requires the inclusion of this information in the notes to the consolidated financial statements.

Other business relations with members of the Supervisory and Executive Boards comprise the purchase and sale of shares in Wacker Chemie AG. Such transactions take place on the usual market terms and conditions. These transactions were published both in the German register of companies and on the Wacker Chemie AG website at: www.wacker.com/annual-document

The members of Wacker Chemie AG’s Supervisory Board and Executive Board are listed on the following pages.

Munich, Germany, February 21, 2011
Wacker Chemie AG

Rudolf Staudigl

Joachim Rauhut

Wilhelm Sittenthaler

Auguste Willems