Swisscom’s remuneration policy in relation to the Group Executive Board is designed to attract and retain highly qualified and motivated professionals and executive personnel in the long term, and to provide the latter with an incentive for the sustainable enhancement of corporate value. It is systematic, transparent and long-range.
The total remuneration paid to the highest-earning member of the Group Executive Board (CEO, Urs Schaeppi) increased by 0,1% compared to the prior year. The increase in total remuneration paid to the Group Executive Board is attributable to the one-time special contribution made to the pension plan to offset the impact of the reduction in the conversion rate for employees born in 1969 or earlier. The increase this caused in retirement provision contributions was largely compensated by the lower variable remuneration .
|CHF in thousands||Total Group
|Fixed base salary paid in cash||3,782||3,775||882||882|
|Variable earnings-related compensation paid in cash||1,604||1,792||284||336|
|Variable earnings-related compensation paid in shares (1)||975||1,018||338||327|
|Service-related and non-cash benefits||84||85||14||17|
|Employer contributions to social security (2)||541||538||126||126|
|Retirement benefits (3)||1,064||816||189||144|
|Total Compensation to members of the Group Executive Board||8,050||8,024||1,833||1,832|
(1) The shares are reported at their market value and are subject to a three-year blocking period.
(2) Employer contributions to social security (AHV (old-age and survivors' insurance), IV (disability insurance), EO (Income Compensation Scheme) and FAK (family allowances compensation fund) incl. administration costs such as daily benefit insurance (KTG) and accident insurance) are included in the total compensation.
(3) Includes the share of the special contribution to the pension fund attributable to the members of the Group Executive Board. Swisscom is paying the non-recurring contribution to mitigate the impact of pension reductions as a result of the lowering of the conversion rate on 1 July 2017.
Since 2013, the members of the Group Executive Board have been required to hold a minimum amount of Swisscom shares. The minimum shareholding to be held by the CEO shall be equivalent to two years' base salary and one year for the members of the Group Executive Board. The members of the Group Executive Board have four years to acquire their shareholding. The number of blocked and non-blocked shares held by members of the Group Executive Board and and/or related parties as at 31 December 2016 and 2015 are as follows:
|Group Executive Board members||Number of
shares as at
shares as at
|Urs Schaeppi (CEO)||3,229||2,602|
|Hans C. Werner||897||571|
|Roger Wüthrich-Hasenböhler (1)||-||1,032|
|Dirk Wierzbitzki (2)||64||-|
|Total shares of the members of the Board of Directors||8,269||7,860|