Did you know that 71% of companies pay their boards of directors in the form of shares (in combination with cash)? That 48% of companies include ESG KPIs in their short-term incentive plans for executives, but only 4% in their long-term incentive plans? That 43% of companies have implemented minimum shareholding requirements for their executives? And that 58% of companies apply malus and/or clawback provisions to their incentives?
If you’re interested in questions like this, you might like to check out the 2021 report on executive compensation design at the top 100 Swiss listed companies. Published for the first time under the umbrella of PwC, the latest report contains exhaustive information on the design of the compensation programmes applicable to the boards of directors and executive committees of companies in Switzerland. With 50 organisations analysed in addition to those represented on the SMI and SMIM, the report now covers the top 100 Swiss listed companies.
Despite the relative lack of media coverage of stakeholder debates around the subject (due in large part to the fact that most of this year’s AGMs have been conducted without shareholders present), board and executive compensation has in some cases been controversial. While things have remained stable by comparison with previous years with regard to say-on-pay votes, we have observed greater dissent in situations where there is an apparent lack of connection between performance and pay, where the performance indicators used in incentive plans have been changed without a compelling rationale, and where compensation levels have been increased.
To provide greater insight against this backdrop of relative intransparency, the report provides detailed information on the structure and level of compensation paid to boards of directors, as well as on shareholding guidelines. In terms of the compensation of executive committees, the report provides information on the compensation mix, the structure and design of short- and long-term incentive plans (including target levels and maximum pay-out opportunity), key performance indicators, malus/clawback provisions and shareholding guidelines. There is also an overview of the compensation plans of each company analysed.
The report is a uniquely detailed and comprehensive work of reference for anyone with an interest in the compensation of Swiss managers and non-executive directors.
Our report presents key information on the executive compensation design in the top 100 Swiss listed companies. To order your report, complete our online form. The cost of this report is CHF 3,800.- + VAT. By purchasing the report, you will be invited to join the biannual Executive Compensation Design roundtables.