Executive summary 2017

Overview architecture of compensation for the Executive Committee

Changes compared to the previous year are highlighted in green.

 

 

 

 

 

 

 

 

 

 

 

Fixed compensation elements

 

 

 

Variable compensation elements

 

 

 

 

Fixed base salary

 

Benefits

 

Short-term incentive Performance year x

 

Long-term incentive Performance year x

 

 

 

 

 

 

 

 

 

Purpose

 

Ensure basic fixed remuneration

 

Ensure protection against risks such as death, disability, and old age

 

Pay for annual performance

 

Align to shareholders’ interests Participate in long-term success and align with Strategy 2020

Drivers

 

Scope and complexity of the function Profile of the individual

 

Local legislation and market practice

 

Performance against business and individual objectives

 

Long-term value creation Supporting a high-performance culture

Performance / Vesting period

 

 

 

 

 

Current year (year x)

 

3 years Grant date: 1 January year x+1 Vesting period: years x+1, x+2, x+3

Blocking period

 

 

 

 

 

 

 

Additional 2 years Years x+4, x+5

Performance measures

 

Skills, experience, and performance of the individual

 

 

 

Organic sales growth EBIT margin ROIC Individual objectives Fine-tuned hurdles

 

All LTI-related shares are performance dependent; 50% PS(EPS), 50% PS(rTSR) EPS-related achievement determination: Ø (EPS value years x+1, x+2, x+3) divided by Ø (EPS value years x, x-1, x-2) * 1.04 rTSR-related achievement determination: Ø (ranking in the years x+1, x+2, x+3 of GF within the SMI-Mid)

Share ownership

 

 

 

 

 

 

 

CEO: 200% of annual fixed base salary EC: 100% of annual fixed base salary

CEO compensation

 

100%

 

Total remuneration dependent

 

Minimum: 0% Target: 100% Maximum: 150% of fixed base salary

 

Vesting: Minimum: 0 shares Target: 750 shares (375 PS(EPS), 375 PS(rTSR)) Maximum: 1’500 shares Articles of Association: The variable compensation (STI and LTI) is capped at 250 % of the fixed compensation for the calendar year in question

EC committee member compensation

 

100%

 

Total remuneration dependent

 

Minimum: 0% Target: 60% Maximum: 90% of fixed base salary

 

Vesting: Minimum: 0 shares Target: 250 shares (125 PS(EPS), 125 PS(rTSR)) Maximum: 500 shares Articles of Association: The variable compensation (STI and LTI) is capped at 250 % of the fixed compensation for the calendar year in question

EBIT = Earnings before interest and taxes

EPS = Earnings per share

LTI = Long-term incentive plan

PS = Performance shares

PS(EPS) = EPS dependent performance shares

PS(rTSR) = rTSR dependent performance shares

ROIC = Return on invested capital

STI = Short-term incentive plan

Ø = Average

Executive Committee compensation 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed compensation elements

 

 

 

Variable compensation elements

 

 

 

Total 2017

 

 

Fixed base salary

 

Benefits

 

Short-term incentive Performance year 2017

 

Long-term incentive Performance year 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance year 2017

 

2’978

 

1’216

 

2’675

 

2’254

 

9’123

Performance / Vesting period

 

 

 

 

 

Year 2017

 

3 years Grant date: 1 January 2018 Vesting period: years 2018, 2019, 2020

 

 

Blocking period

 

 

 

 

 

 

 

2 years (years 2021, 2022)

 

 

Performance measures

 

 

 

 

 

Organic sales growth EBIT margin ROIC Individual objectives

 

EPS-related achievement determination: Ø (EPS value years 2018, 2019, 2020) divided by Ø (EPS value years 2017, 2016, 2015) * 1.04 rTSR-related achievement determination: Ø (ranking in the years 2018, 2019, 2020 of GF within the SMI-Mid)

 

 

Delivery

 

Monthly cash

 

Contributions to social security, pension, and insurances

 

Cash payment in March 2018

 

1’750 PS with a total grant value of 2’254 based on share price of CHF 1’288 at 29 December 2017

 

 

Executive Committee target compensation

 

2’978

 

1’157

 

2’163

 

2’254

 

8’552

Compensation 2017 in % of target compensation*

 

100%

 

105.1%

 

123.7%

 

100%

 

106.7%

(all financial figures in CHF 1’000, except number of shares and shareprice)

* These figures represent the ratio between elements of compensation achieved within 2017 compared to elements of target compensation.

EBIT = Earnings before interest and taxes

EPS = Earnings per share

LTI = Long-term incentive plan

PS = Performance shares

PS(EPS) = EPS dependent performance shares

PS(rTSR) = rTSR dependent performance shares

ROIC = Return on invested capital

STI = Short-term incentive plan

Ø = Average

Executive Committee Compensation 2017
Amounts in CHF 1'000
Executive Committee Compensation 2017
in percentage of total compensation

  

CEO compensation 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed compensation elements

 

 

 

Variable compensation elements

 

 

 

Total 2017

 

 

Fixed base salary

 

Benefits

 

Short-term incentive Performance year 2017

 

Long-term incentive Performance year 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance year 2017

 

942

 

400

 

1’163

 

966

 

3’471

Performance / Vesting period

 

 

 

 

 

Year 2017

 

3 years Grant date: 1 January 2018 Vesting period: years 2018, 2019, 2020

 

 

Blocking period

 

 

 

 

 

 

 

2 years (years 2021, 2022)

 

 

Performance measures

 

 

 

 

 

Organic sales growth EBIT margin ROIC Individual objectives

 

EPS-related achievement determination: Ø (EPS value years 2018, 2019, 2020) divided by Ø (EPS value years 2017, 2016, 2015) * 1.04 rTSR-related achievement determination: Ø (ranking in the years 2018, 2019, 2020 of GF within the SMI-Mid)

 

 

Delivery

 

Monthly cash

 

Contributions to social security, pension, and insurances

 

Cash payment in March 2018

 

750 PS at grant value (based on share price at 29 December 2017 of CHF 1’288) 375 PS(EPS): grant value 483 375 PS(rTSR): grant value 483 Total Grant value: 966

 

 

CEO target compensation

 

942

 

374

 

942

 

966

 

3’224

Compensation 2017 in % of target compensation*

 

100%

 

107.0%

 

123.5%

 

100%

 

107.7%

(all financial figures in CHF 1’000, except number of shares and shareprice)

* These figures represent the ratio between elements of compensation achieved within 2017 compared to elements of target compensation

EBIT = Earnings before interest and taxes

EPS = Earnings per share

LTI = Long-term incentive plan

PS = Performance shares

PS(EPS) = EPS dependent performance shares

PS(rTSR) = rTSR dependent performance shares

ROIC = Return on invested capital

STI = Short-term incentive plan

Ø = Average

CEO Compensation 2017
Amounts in CHF 1'000
CEO Compensation 2017
in percentage of total compensation