Remuneration policy
Corporate risk, scope of responsibility and the Ordinance on Executive Pay are taken into account by the Board of Directors when determining the remuneration due to members of Executive Management. The Federal Council determines the level of remuneration for members of the Board of Directors.
Remuneration for members of Executive Management is comprised of a fixed base salary plus a performance-related component. This may be a maximum of 45 percent of the gross annual base salary (55 percent in the case of the CEO). The variable component is determined on the basis of 20 percent for individual performance and 40 percent each for various benchmarks within the Group and the Group unit respectively. A penalty may apply depending on target attainment. At Group level, the variable component is calculated at 28 percent from economic value added and 12 per cent from the proportion of very satisfied customers. At Group unit level, qualitative benchmarks and financial ratios such as EBIT (each with 20 percent weightings) form the basis for calculation. For PostFinance Ltd, return on equity is applied instead of EBIT. The payment of a third of the variable remuneration will be deferred over a three-year period.
Members of Executive Management also receive a first-class GA travelcard, a company car, a mobile phone and a monthly expense account. Swiss Post pays the insurance premiums for a risk insurance policy. Individual bonuses may be paid to reward special personal contributions.
Neither the members of Executive Management nor persons closely linked to them received any additional fees, remuneration, guarantees, advances, credits, loans or benefits in kind during the financial year.
Both the base salary and the performance component are insured for members of Executive Management up to a maximum of 336,960 francs in the Swiss Post pension fund (defined contribution plan); higher income is covered by a management insurance scheme (defined contribution plan). The employer contributes disproportionally to the contributions for employee benefits. Employment contracts are based on the Swiss Code of Obligations. Since 1 July 2010, the notice period for members of Executive Management has been six months. For members appointed before that date, the previous notice period of 12 months applies. No agreements on severance payments are in place.
Remuneration for members of Executive Management is comprised of a fixed base salary plus a performance-related component.