In order to ensure the company's success and to maintain its position as market leader, it is critical to attract, develop and retain the right talent. Geberit’s compensation programs are designed to support these fundamental objectives and are based on the following principles:

• Remuneration is competitive with that of other companies with which Geberit competes for talent
• Both company performance and individual contributions are recognized and rewarded
• Remuneration programs are balanced between the reward of short-term success and long-term value creation
• Shareholding programs foster the long-term commitment of executives and the alignment of their interests to those of shareholders
• Executives are protected against risks through appropriate pension and insurance programs

In order to ensure the independence of the Board of Directors in its supervisory function over the Group Executive Board, members of the Board of Directors receive a fixed remuneration in the form of non-discounted shares with a blocking period of four years. The remuneration system for the Board of Directors no longer contains any performance-related component.

The remuneration of the Group Executive Board is based on Geberit’s value drivers, such as sales growth, earnings before interest and tax (EBIT), return on invested capital (ROIC) and earnings per share (EPS). The performance-related com­po­nents are embedded in the annual target setting process within the performance management system, where both individual and financial performance objectives are defined and assessed.

Geberit’s remuneration system is balanced between the reward of individual performance and the company’s success, and the long-term retention of executives and the alignment of their interests to those of shareholders by means of an equity ownership plan.