3. Remune­ration at a glance

Board of Directors

Summary of current compensation system

In order to ensure the independence in their supervisory function, members of the Board of Directors receive a fixed remuneration only, in the form of cash and shares, with a blocking period of four years.

 
Annual fees
 
in CHF
 
Delivery
Chairman 885,000 Cash and restricted shares
Vice Chairman 245,000 Restricted shares
Member of the BoD 190,000 Restricted shares
Chairman of NCC / Audit Committee 45,000 Restricted shares
Member of NCC / Audit Committee 30,000 Restricted shares
Expense allowance 15,000 Cash

See 5. Remuneration architecture, 5.1 Board of Directors

 

Compensation in 2018

The compensation awarded to the Board of Directors for the term of office until the Annual General Meeting 2018 is within the limits approved by the shareholders at the annual general meetings:

Comparison period Approved amount (CHF) Effective amount (CHF)
AGM 2017 – AGM 2018 2,350,000 2,279,943
AGM 2018 – AGM 2019 2,350,000 2,277,435*
* The compensation period is not yet completed, a definitive assessment will be provided in the compensation report for FY 2019

Group Executive Board

Summary of current compensation system

The remuneration of the Group Executive Board consists of fixed and variable elements. Base salary and benefits form the fixed remuneration and are based on prevalent market practice. Variable remuneration drives and rewards best-in-class performance based on ambitious targets. It consists of short-term and long-term
elements:

Base salary Pay for the function
Fixed
compensation
Benefits Cover retirement, death and disability risks, attract and retain
Short-Term Incentive Drive and reward performance, attract and retain
Variable
compensation
Share Participation Programme (MSPP) Align with shareholders’ interests
Long-Term Incentive (Share Option Plan/MSOP) Drive and reward long-term performance, align with shareholders’ interests, attract and retain

See 5. Remuneration architecture, 5.2 Group Executive Board

 

Compensation in 2018

The compensation awarded to the Group Executive Board in the financial year 2018 is within the limits approved by the shareholders at the annual general meeting:

Comparison period Approved amount (CHF) Effective amount (CHF)
Financial year 2018 11,300,000 8,727,347

Performance in the financial year 2018

The weighted average of all elements used to calculate the variable cash remuneration slightly exceeded the targets.

See 7. Group Executive Board, 7.1 Performance in 2018

Changes from 2019 onwards

Performance options granted under the long-term incentive and under the management share purchase plan will have a three-year cliff vesting and a maturity of nine years. Claw-back and malus provisions will be introduced in the long-term incentive plan (currently in place in the short-term incentive plan).

See Outlook

Remuneration principles

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 remuneration programmes are designed to support this fundamental objective and are based on the following principles:

  • Remuneration is competitive with that of other companies with which Geberit competes for talents.
  • Both company performance and individual contributions are recognised and rewarded.
  • Remuneration programmes are balanced between rewarding short-term success and long-term value creation.
  • Participation plans foster the long-term commitment and mindset of executives and the alignment of their interests to those of the shareholders.
  • Executives are protected against risks through appropriate pension and insurance programmes.

Compensation governance

  • Authority for decisions related to remuneration is governed by the Articles of Incorporation and the Organisational Regulations of Geberit AG.
  • The prospective maximum aggregate amounts of remuneration of the members of the Board of Directors and of the Group Executive Board are subject to a binding shareholders’ vote at the General Meeting.
  • The Remuneration Report for the preceding period is subject to a consultative vote.

See 4. Determination of remuneration

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