Executive summary 2018

Overview of 2018 compensation structure for the Executive Committee (including CEO)

 

 

 

 

 

 

 

 

 

 

 

Fixed compensation elements

 

 

 

Variable compensation elements

 

 

 

 

Fixed base salary

 

Benefits

 

Short-term incentive Performance year 2018

 

Long-term incentive Performance year 2018

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Year 2018

 

3 years Grant date: 1 January year 2019 Vesting period: years 2019, 2020, 2021

Blocking period

 

 

 

 

 

 

 

Additional 2 years Years 2022, 2023

Performance measures

 

Skills, experience, and performance of the individual

 

 

 

Organic sales growth EBIT margin ROIC Individual objectives

 

All LTI-related shares are performance dependent; 50% PS(EPS), 50% PS(rTSR) EPS-related achievement determination: Ø (EPS value years 2019, 2020, 2021) divided by Ø (EPS value years 2016, 2017, 2018) * 1.04 rTSR-related achievement determination: Ø (ranking in the years 2019, 2020, 2021 of GF within the SMI-Mid) The performance measures will be amended for the LTI-Plan 2019. A detailed outline can be found in chapter Changes for the Business Year 2019.

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 Subject to cap as defined in 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 Subject to cap as defined in 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 2018 (including CEO)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed compensation elements

 

 

 

Variable compensation elements

 

 

 

Total 2018

 

 

Fixed base salary

 

Benefits

 

Short-term incentive Performance year 2018

 

Long-term incentive Performance year 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance year 2018

 

3’003

 

1’239

 

2’797

 

1’378

 

8’417

Delivery

 

Monthly cash

 

Contributions to social security, pension, and insurances

 

Cash payment in March 2019

 

1’752 PS with a total grant value of 1’378 based on share price of CHF 786.50 at 31 December 2018

 

 

Short-term incentive target

 

 

 

 

 

2’182

 

 

 

 

Short-term incentive 2018 in % of target

 

 

 

 

 

128.2%

 

 

 

 

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

PS = Performance shares

At the Annual Shareholders’ Meeting of 19 April 2017, a maximum sum of CHF 10.298 million for remuneration of the members of the Executive Committee for the business year 2018 was approved.

Executive Committee Compensation 2018
Amounts in CHF 1’000
Executive Committee Compensation 2018
in percentage of total compensation

CEO compensation 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed compensation elements

 

 

 

Variable compensation elements

 

 

 

Total 2018

 

 

Fixed base salary

 

Benefits

 

Short-term incentive Performance year 2018

 

Long-term incentive Performance year 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance year 2018

 

950

 

410

 

1’247

 

590

 

3’197

Delivery

 

Monthly cash

 

Contributions to social security, pension, and insurances

 

Cash payment in March 2019

 

750 PS with a total grant value of 590 based on share price of CHF 786.50 at 31 December 2018

 

 

Short-term incentive target

 

 

 

 

 

950

 

 

 

 

Short-term incentive 2018 in % of target

 

 

 

 

 

131.3%

 

 

 

 

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

PS = Performance shares

CEO Compensation 2018
Amounts in CHF 1’000
CEO Compensation 2018
in percentage of total compensation