Dear Colleagues,
We as BHC Pharmaceuticals are fully committed to fair and competitive compensation for our teams. As announced on previous occasions, for example during our discussion on Employee Survey results, we have now completed a thorough review of our compensation policy for Pharma Thailand, taking into account most recent market benchmark of relevant companies as well as local and global Bayer regulations.
It is my pleasure to announce that the review reconfirmed our current compensation as highly competitive vs. the market in overall terms (total cash). On the other hand, quite naturally, it also revealed certain areas with opportunity for improvement. As such, we are revisiting our compensation policy with following changes effective January 1, 2015:
- We will be consolidating the different existing variable pay components (global STI, local STI, company achievement bonus, sales incentive) into only one variable pay component per eligible employee. As such, ‘company achievement bonus’ will be discontinued and the corresponding amount will be incorporated into monthly salaries of eligible personnel as per below:
o For sales personnel, @ 100% (i.e. 1 month’s salary / 12 per month). Sales incentive will remain as the only variable pay component
o For non-managerial, non-sales personnel, @ 80% (i.e. 0.8 month’s salary / 12 per month). Remaining 20% (i.e. 0.2 month’s salary) will be added to the existing local STI scheme to increase the pay-out for ‘fully meets expectations’ to 2.7 months from the current 2.5 months. Local STI will remain as the variable pay component and will be calculated analogous to the global STI scheme based on individual performance, subgroup performance and Bayer performance annually – paid out in 2016 based on 2015 performance
o No changes for managerial, non-sales personnel who are already eligible for global STI scheme as the only variable pay component
As you will see in your January pay slip, these changes will considerably improve monthly guaranteed earnings for most of our colleagues and thus, I trust, will be welcomed by all. For me, they once again underline our firm commitment to our team and reconfirm our ambition to play in the top league.