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 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.
|CHF in thousands||Total Group
|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.
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
shares as at
|Urs Schaeppi (CEO)||3,964||3,229|
|Hans C. Werner||1,068||897|
|Urs Lehner (1)||115||0|
|Christian Petit (2)||0||1,337|
|Total shares of the members of the Board of Directors||8,953||8,269|