19 Treasury shares
As of year-end 2016, GF held 12ʼ338 treasury shares with a par value of CHF 1 (previous year: 8ʼ635 registered shares). In the year under review, 20ʼ467 treasury shares were purchased on the stock market at an average transaction price of CHF 820.60, and 6ʼ785 treasury shares were sold on the stock market at an average transaction price of CHF 811.92.
According the compensation model for the Board of Directors, members receive a fixed number of Georg Fischer registered shares. In accordance with the long-term incentive plan, members of the Executive Committee are entitled to a fixed number of restricted Georg Fischer registered shares (RS) and a number of performance restricted Georg Fischer registered shares (PS). The vesting of the performance restricted shares (PS) is based on an assumption of Earnings per Share (EPS) – values over prospective three years. Based on a plan defined by the Board of Directors, a fixed number of Georg Fischer registered shares are granted to members of senior management as long-term financial incentive.
Of the 12ʼ388 treasury shares (registered shares) held by GF as of year-end 2016, 7ʼ704 registered shares are foreseen for share based compensation of Executive Committee and members of senior mamangement.
The allocation for the share-based compensation is based on the relevant plan regulations. The share-based compensation for members of the Board of Directors, for the Executive Committee as well as the registered shares for the members of the senior management are stated at fair value and recognized as an expense at the allocation date. Such compensation is recorded under “Operating expenses” (see note 24) for the Board of Directors and under “Personnel expenses” (see note 25) for the Executive Committee and senior management. The total expense for the share-based compensation plans is CHF 8 million (previous year: CHF 6 million).
