29 Related parties
Related parties include members of the Board of Directors and the Executive Committee, employee benefit plans and major shareholders as well as the companies under their control. Transactions with related persons and companies are generally conducted at arms’ length.
The members of the Board of Directors are compensated by a fixed number of Georg Fischer registered shares, and a fixed fee paid in cash, which varies according to their function (chairman, member of standing committees, etc.).
The members of the Board of Directors received cash compensation of CHF 1.2 million in the year under review (previous year: CHF 1.2 million). In addition, a total of 1'501 Georg Fischer registered shares (par value of CHF 1) with a market value of CHF 1.3 million were allocated as share-based compensation (previous year: 1'534 Georg Fischer registered shares, equivalent to a market value of CHF 1.0 million). Together with other benefits, the total compensation paid to the Board of Directors in the year under review amounted to CHF 2.5 million (previous year: CHF 2.3 million). The total compensation of the Board of Directors is recognized in the operating expenses (see note 24).
In the year under review 2ʼ126 Georg Fischer registered shares (1ʼ063 restricted shares and 1ʼ063 performance shares) with a total value of CHF 1.8 million, based on a share price of CHF 834 at year end 2016, were granted to members of the Executive Committee and thereof 1ʼ063 Georg Fischer registered shares were transferred (previous year: 2ʼ050 Georg Fischer registered shares with a total value of CHF 1.4 million). In addition, the members of the Executive Committee received cash compensation plus social security and pension contributions of CHF 6.5 million for the year under review (previous year: CHF 6.3 million). The total compensation of the Executive Committee is included in the personnel expenses (see note 25).
Apart from the regular compensation paid to the Board of Directors and the Executive Committee, and the regular contributions to the various employee benefit institutions, no transactions were conducted with related persons or companies.
The total compensation paid to the Board of Directors and Executive Committee breaks down as follows:
Additional fees and remuneration
No member of the Executive Committee or the Board of Directors or any persons related to them received any fees or other compensation for additional services to Georg Fischer Ltd or its Corporate Companies in the 2016 financial year.
Loans to members of governing bodies
Neither Georg Fischer Ltd nor its Corporate Companies granted any guarantees, loans, advances, or credit facilities to members of the Executive Committee or the Board of Directors or to any persons related to them.
The detailed disclosure of the compensation and shareholdings of the members of the Board of Directors and the Executive Committee in accordance with Swiss law can be found in the financial statements of Georg Fischer Ltd in note 6.
