4.3 Related parties

Related parties include associated companies, members of the Board of Directors and the Executive Committee, pension funds and similar institutions.

4.3.1 Transactions with associated companies

CHF 75 million of loans to associated companies (previous year CHF 62 million) and contingent liabilities to associated companies in favor of third parties of CHF 76 million (previous year: CHF 125 million) were outstanding, see note 5.2 and note 2.6 (2.6.3 Contingent liabilities).

4.3.2 Transactions with members Board of Directors and the Executive Committee

Total compensation paid to the Board of Directors and Executive Committee breaks down as follows (see also in the Compensation Report):

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CHF 1'000

 

2019

 

2018

 

 

 

 

 

Cash compensation

 

5'789

 

6'959

Pension funds

 

819

 

864

Social security

 

515

 

485

Share-based compensation

 

3'100

 

2'558

Total compensation

 

10'223

 

10'866

The members of the Board of Directors received a fixed number of Georg Fischer restricted shares and a fixed remuneration paid in cash. The total compensation of the Board of Directors is recognized as operating expenses, see note 1.3 (1.3.1 Operating expenses) and the information in the Compensation Report. The valuation of the restricted shares is based on the year-end share price of CHF 983.00 (previous year: CHF 786.50). In total, 1’501 restricted shares were granted to the Board of Directors (previous year: 1’500).

The compensation for the Executive Committee consists of a long-term share-based incentive, a short-term cash incentive and a fixed base salary. The share-based incentive is granted in the form of performance shares. The total compensation of the Executive Committee is recognized as personnel expenses, see note 1.3 (1.3.2 Personnel expenses) and the information in the Compensation Report. The valuation of the performance shares is based on the year-end share price of CHF 983.00 (previous year: CHF 786.50). In order to derive the value of the performance shares, a financial model was used that takes into consideration the specific performance criteria linked to the performance shares, namely the earnings per share criteria and the relative total shareholder return criteria, see also the Compensation Report. In total, 1’644 performance shares were granted to the Executive Committee (previous year: 1’752).

Share-based compensation to the Board of Directors and Executive Committee amounted to CHF 3.1 million (previous year: CHF 2.6 million).

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 from GF or its GF Corporate Companies in 2019.

Neither GF nor its GF 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 Compensation Report, respectively in the financial statements of Georg Fischer Ltd in note 6 Compensation and shareholdings.

4.3.3 Transactions with pension funds and similar institutions

The corporation holds current accounts with some of its related pension funds and similar institutions. As per financial year-end a liability of CHF 1 million resulted (previous year: liability of CHF 4 million). The current accounts bear an interst of 1%. Further, contributions of CHF 1 million were made to similar institutions (previous year: CHF 1 million).

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