Under this program, Bayer offers employees the opportunity to purchase shares at a 15 percent discount. Further parameters of the program are:
Under § 19a of the German Income Tax Act, no tax or social security contributions are payable on a total discount of up to € 135. This means that the employees could purchase up to 16 Bayer shares at a discount of € 8,10 per share without incurring tax liability on the price advantage that this discount represents. However, if one buys more than 16 shares, the employee's individual income tax rate is applied on the amount by which the total discount thereby granted exceeds € 135.
The trading price on which the respective discount is given shall be the daily low for the Bayer share in Xetra trading on August 11, 2008 (day of approval by the Board of Management). This was € 53.97. The shares purchased under the 2008 program must be held in a special deposit account and may not be sold before December 31, 2009.
Stock participation programs for employees are also offered in various other countries.