Dear Shareholder

The public demand for greater transparency regarding the remuneration of the Board of Directors and the Group Executive Board, together with the results of the external benchmarking study conducted in 2012 and the weaker-than-expected result of last year’s consultative vote on the Remuneration Report, has led Geberit to make a series of changes in the area of executive remuneration and its disclosure in order to meet the needs of the various stakeholders.

In terms of content, the following changes were made to the remuneration system:

• The remuneration of the Board of Directors consists exclusively of a fixed remuneration paid out in the form of non-discounted shares with a blocking period
• Implementation of a performance criterion in the Long-Term Incentive for the Group Executive Board
• Increased transparency of the performance-based compensation programs (Short-Term and Long-Term Incentives)
• Implementation of a claw-back policy and a change of control clause for the Group Executive Board
• Increased disclosure of compensation and employment terms and conditions of the Group Executive Board.

The Remuneration Report provides comprehensive information about the remuneration principles and programs applicable to the Board of Directors and the Group Executive Board. It also describes the governance of the determination of remuneration and provides details of remuneration related to the 2013 per­for­mance year. The report meets today’s corporate governance standards and is written in accordance with Art. 663b and 663c of the Swiss Code of Obligations, the principles of the Swiss Code of Best Practice issued by economiesuisse and the Corporate Governance Directive of the SIX Swiss Exchange.

I hope you find this report informative; I am confident that the changes made to executive remuneration align well with the evolving environment in which the company operates.

 

Yours sincerely

Robert F. Spoerry
Chairman of the Nomination & Compensation Committee