Executive Compensation Design Report 2022

Everything you need to know about the Executive Compensation Design in the top 100 Swiss listed companies

Did you know that 72% of companies pay their boards of directors in the form of shares (in combination with cash)? That 75% of the SMI companies include ESG KPIs in their short-term incentive plans for executives, but only 35% of the SPI50 companies? That 48% of companies have implemented minimum shareholding requirements for their executives? And that 50% 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 2022 report on executive compensation design at the top 100 Swiss listed companies. This report contains exhaustive information on the design of the compensation programmes applicable to the boards of directors and executive committees of the top 100 companies in Switzerland, including individual company profiles and line-by-line data in EXCEL format. 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.

Looking back at the say-on-pay votes at the annual general meetings in 2023, the results were stable compared to previous years with average approval rates of 88% for the compensation report, 97% for the amount of compensation for the Board of Directors and 94% for the amount of compensation for the Executive Committee. While the average approval rates slightly improved compared to the previous year, they were more broadly distributed. Some companies, for instance, faced a higher level of dissent in the following areas:

Lack of apparent connection between performance and pay, especially in cases where the performance targets and achievements are not or not transparently disclosed
Increase in the compensation levels without compelling rationales
Lack of transparency and insufficient disclosure in general

Regarding compensation design, we again observe an increase in the number of companies introducing ESG KPIs in their compensation plans (both short term and long term) to address the demands of shareholders to consider the broader impact of the company on society in decisions on compensation. Further, several companies continue to fine-tune their definitions of performance by amending the performance indicators relevant to the incentive plans and/or adjusting their respective weighting. Lastly, certain trends are continuing, such as the implementation of share ownership guidelines and malus/claw back provisions in the incentive plans.

New report - Executive Compensation Design

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.

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