6 Compensation of the Executive Committee for 2018

For the 2018 financial year, the members of the Executive Committee received total compensation of CHF 8.1 million compared with CHF 7.0 million the year before. The maximum total compensation for the Executive Committee of CHF 7.7 million approved at the Annual General Meeting on April 25, 2017 was exceeded by CHF 0.4  million due to changes in the composition of the Executive Committee and an unplanned LTI allocation in accordance with the Articles of Association.

When the head of the FoamPartner business unit took up his position on January 1, 2018, he received compensation for the loss of deferred variable compensation from his previous employer in the amount of CHF 330ʼ000 (paid in shares over three years, 2018–2020). This share allocation will remain restricted for only two years and will only be transferred if the position is still held at the time, with no period of notice served by either side.

A special bonus for outstanding performance, amounting to CHF 280ʼ000, in equal parts in the form of shares restricted over four years and as a cash bonus, was approved to the head of the business unit Bystronic.

The share allocations under the compensation arrangement for the head of the FoamPartner business unit and the special allocation for the head of the Bystronic business unit happen at the same time as the ordinary LTI. The respective share allocations were calculated without a 10% discount at the average share price from November 1, 2018, to January 31, 2019 (CHF 829.70).

The total amount of both allocations was credited to the LTI and recognized in financial year 2018.

Compensation of the Executive Committee for financial year 2018

Compensation of the Executive Committee for financial year 2017

The target achievement value of the STI for all members of the Executive Committee was between 74.4% and 133.3% and the target value of the reported earnings per share (EPS), which determines the monetary value of the share allotment for the 2018 financial year, was 131.4%.

For the 2018 financial year, the members of the Executive Committee will receive 1ʼ625 shares from the ordinary LTI scheme. The shares will be allocated after the Annual General Meeting at a price of CHF 829.70, the average share price from November 1, 2018, to January 31, 2019, with a discount of 10%. Despite the almost unchanged LTI performance assessment criterion (EPS), more shares were allocated compared with the previous year because the share price had fallen. The allocated shares will remain restricted for four years, in other words they will be released in April 2023. Information with regard to shares held by Executive Committee members is outlined in the Notes to the Financial Statements of Conzzeta AG.

As regards payments made to former Executive Committee members, in 2018 the former CEO of the business unit Mammut, who left effective March 1, 2017, was remunerated at standard market rates for consulting services provided in connection with ongoing projects up to the end of 2018.

No loans or credits were granted to members of the Executive Committee or related parties in the reporting year. As of Monday, December 31, 2018, there were no current loan or credit contracts between the company and the members of the Executive Committee or related parties.