Integrated Annual Report 2025

28 Related parties

Accounting policy

We identified key management personnel, associates, and joint ventures as related parties. For associates and joint ventures, see 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 the disclosure of the remuneration of key management personnel divided into: 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

We 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 €19 million (2024: €21 million). In 2025, dsm-firmenich recognized €19 million in expected credit losses for loans to and receivables from related parties. Other related-parties disclosures relate entirely to key management of dsm-firmenich, being represented by the company’s management.

Key management personnel

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 corresponding service period. No loans or guarantees have been provided to the Members of the Board of Directors or the Members of the Executive Committee.

Remuneration expenses Board of Directors and Executive Committee

in € thousand

 

20252

 

20242

Base salary/Committee fee in cash

 

8,830

 

9,183

Employer pension contribution

 

1,397

 

1,395

Short-Term Incentive

 

4,588

 

11,693

Share-based compensation1

 

7,445

 

8,261

Other

 

1,962

 

5,492

Subtotal

 

24,222

 

36,024

 

 

 

 

 

Employer social securities

 

1,862

 

1,646

Total

 

26,084

 

37,670

1

Represents the expenses of Restricted- and Performance Share Units (PSUs) awarded according to IFRS rules. These costs are considered over the vesting period and therefore cover several years.

2

Including former Member of the ExCo.

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