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Remuneration


Remuneration of the Group Executive Board

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.






Compensation

Overview of all remuneration

The total remuneration paid to the highest-earning member of the Group Executive Board (CEO, Urs Schaeppi) increased by 1.9% compared to the prior year. The increase in total remuneration paid to the Group Executive Board and the CEO is primarily attributable to the higher variable remuneration as compared to the previous year.



2017

CHF in thousands Total Group
Executive Board
2017
Total Group
Executive Board
2016
Thereof
Urs Schaeppi
2017
Thereof
Urs Schaeppi
2016
Fixed base salary paid in cash 3,736 3,782 882 882
Variable performance-related salary component in cash 1,966 1,604 486 284
Variable earnings-related compensation paid in shares (1) 901 975 193 338
Service-related and non-cash benefits 92 84 21 14
Employer contributions to social security (2) 591 541 145 126
Pension benefits (3) 847 1,064 141 189
Total remuneration to members of the Group Executive Board 8,133 8,050 1,868 1,833
Benefits paid following retirement from the Group Executive Board (4) 629 - - -
Total remuneration paid to members of the Group Executive Board, including benefits paid following retirement from the Group Executive Board 8,762 8,050 1,868 1,833

(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 replacement scheme) and FAK (family allowances compensation fund) incl. administration costs such as daily benefit insurance (KTG) and accident insurance) are included in total remuneration.
(3) The 2016 figure includes the share of a one-time special contribution attributable to the members of the Group Executive Board that was made to the pension fund to mitigate pension reductions as a result of the lowering of the conversion rate.
(4) Remuneration paid to the member of the Group Executive Board who retired during the reporting year to meet contractual obligations during the notice period.





Shareholdings

Shareholdings of the members of the Group Executive Board

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 2017 and 2016 are as follows:


Group Executive Board members Number of
shares as at
31.12.2017
Number of
shares as at
31.12.2016
Urs Schaeppi (CEO) 3,964 3,229
Mario Rossi  1,236 1,027
Hans C. Werner 1,068 897
Marc Werner  750 382
Urs Lehner (1) 115 0
Christian Petit (2) 0 1,337
Heinz Herren 1,586 1,333
Dirk Wierzbitzki 234 64
Total shares of the members of the Board of Directors 8,953 8,269

(1) Joined the Group Executive Board effective 21 June 2017.
(2) Stepped down from the Group Executive Board effective 21 June 2017.





Management transactions

Transactions with Swisscom securities conducted by the Group Executive Board and Board of Directors

All transactions in Swisscom registered shares, options and in financing instruments based on Swisscom shares or options are published by SIX Swiss Exchange in line with the guidelines on the disclosure of management transactions.