4.3 Related parties

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

4.3.1 Transactions with associates

CHF 0 million of loans to associates (previous year: CHF 75 million) and contingent liabilities to associates in favor of third parties of CHF 0 million (previous year: CHF 76 million) were outstanding. The change is explained by the sale of remaining ownership in associates, see note 5.2.

4.3.2 Transactions with members of the Board of Directors and the Executive Committee

Total compensation to the Board of Directors and Executive Committee is broken down as follows:

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CHF 1'000

2020

2019

 

 

 

Cash compensation

5’499

5’789

Pension funds

541

819

Social security

533

515

Share-based compensation

3’568

3’100

Total compensation

10’141

10’223

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 1’140.00 (previous year: CHF 983.00). A total of 1’396 restricted shares were granted to the Board of Directors (previous year: 1’501).

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 1’140.00 (previous year: CHF 983.00). 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. A total of 1’764 performance shares were granted to the Executive Committee (previous year: 1’644).

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 2020 and in 2019.

Neither Georg Fischer Ltd 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 of the end of the financial year, it had a liability of CHF 3 million (previous year: liability of CHF 1 million). The current accounts bear an interest of 1%. Furthermore, contributions of CHF 1 million were made to similar institutions (previous year: CHF 1 million).

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