Accounting policy
dsm-firmenich has identified its key management personnel and its associates and joint ventures as related parties. For associates and joint ventures, see also Note 10 Associates and joint arrangements.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, as defined by IAS 24 ‘Related Parties’. IAS 24 requires disclosure of key management personnel split in the total of short-term employee benefits (salary and short-term incentive), post-employment (pension expenditure) and other long-term benefits, termination benefits and share-based payment cost (share-based compensation).
Transactions with associates and joint ventures
|
|
2023 |
|
2022 |
|---|---|---|---|---|
Sales to |
|
12 |
|
18 |
Purchases from |
|
105 |
|
35 |
Loans to |
|
11 |
|
1 |
Receivables from |
|
17 |
|
17 |
Payables to |
|
5 |
|
4 |
Interest from |
|
- |
|
1 |
Commitments to |
|
6 |
|
- |
dsm-firmenich may issue guarantees as credit enhancement of associates to acquire bank facilities for these associates. dsm-firmenich has provided guarantees to third parties for debts of associates for an amount of €28 million (2022: €60 million). Expected credit losses for receivables from related parties amount to zero (same as 2022).
Other related-parties disclosures relate entirely to key management of dsm-firmenich, being represented by the company’s management. For further details about their remuneration, see below.
Key management personnel
For the period January 2023 until March 2023, the Supervisory Board, the Managing Board, and the Executive Committee of former DSM meet the definition of key management personnel. As of April 2023, the members of the Board of Directors and the Members of the Executive Committee of dsm-firmenich meet the definition of key management personnel. Personnel expenses are recognized in the regarding service period. Personnel expenses relating to the remuneration of the Supervisory Board (SB), the Managing Board (MB), and the Executive Committee (EC) of former DSM over the regarding service period are shown in below table.
x € thousand |
|
2023 |
|
2022 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Base salary/Supervisory Board fees |
|
2,391 |
|
6,521 |
||||||||
Employer pension contribution |
|
471 |
|
1,197 |
||||||||
Short-Term Incentive1 |
|
869 |
|
3,399 |
||||||||
Share-based compensation2 |
|
2,518 |
|
7,778 |
||||||||
Other3 |
|
16,562 |
|
6,612 |
||||||||
Total |
|
22,811 |
|
25,507 |
||||||||
|
||||||||||||
The above table shows the remuneration expenses for the Supervisory Board, Managing Board and Executive Committee of former DSM who were in function until 18 April 2023.
Members of the Executive Committee of former DSM are entitled to the remaining rights of their prior LTI (Long-Term Incentive) plan, which consists of share-based payments. The share-based payment costs included for the reporting period relate to the pro-rata part of the full 2023 costs.
The Members of the Board of Directors (BoD) and Executive Committee (ExCo) of dsm-firmenich were appointed effective 18 April 2023. The remuneration over the period starting 18 April 2023 up to and including 31 December 2023 is shown in the below table.
x € thousand |
|
2023 |
|
2022 |
||||
|---|---|---|---|---|---|---|---|---|
Base salary/Committee fee in cash |
|
6,841 |
|
- |
||||
Employer pension contribution |
|
807 |
|
- |
||||
Short-Term Incentive |
|
3,973 |
|
- |
||||
Share-based compensation1 |
|
4,401 |
|
- |
||||
Other |
|
1,498 |
|
- |
||||
Subtotal |
|
17,520 |
|
- |
||||
|
|
|
|
|
||||
Employer social securities |
|
585 |
|
- |
||||
Total |
|
18,105 |
|
- |
||||
|
||||||||