Compensation at a glance

Summary of current compensation system of Board of Directors

To ensure their independence, members of the Board of Directors only receive a fixed compensation paid in cash and shares restricted for three years. The amount of compensation depends on the function on the Board of Directors (BoD).

Shareholding ownership guideline

The members of the Board of Directors are required to own at least 500 dormakaba shares within three years of tenure.

Compensation of Board of Directors in financial year 2017/18

The compensation awarded to the Board of Directors in financial year 2017/18 is within the limits approved by the shareholders at the Annual General Meetings (AGM):

Changes made in financial year 2017/18

Starting with the compensation period from the 2017 AGM onwards, the shares are allocated based on a fixed monetary amount rather than a fixed number of shares. This is in line with market practice in Swiss listed companies.

Summary of current compensation system of Executive Committee

The compensation system applicable to the Executive Committee is designed to engage executives to implement the company’s strategy, to achieve the company’s short- and long-term business objectives and to create sustainable shareholder value. It consists of the following elements:

Shareholding ownership guideline

The members of the Executive Committee are required to own at least a minimum multiple of their annual base salary in dormakaba shares within five years of tenure:

Compensation of Executive Committee in financial year 2017/18

The compensation awarded to the Executive Committee in financial year 2017/18 is within the limits approved by the shareholders at the AGM:

Performance in financial year 2017/18

Overall, results for the 2017/18 financial year were solid, but did not meet our expectations. Consolidated net sales increased by 12.7% to CHF 2,841.0 million. The organic sales growth for the 2017/18 financial year amounted to 2.6%. The EBITDA rose by 11.3% to CHF 431.0 million, with an EBITDA margin of 15.2%. All acquisitions since the dormakaba merger have positively contributed to these results. Net profit was 6.3% higher than in the previous financial year at CHF 238.7 million. Consequently, the payout under the short-term incentive was below that of the previous year.

Compensation governance

• The Compensation Committee supports the Board of Directors with matters related to the compensation of the Board of Directors and of the Executive Committee.
• Shareholders approve the maximum compensation amounts of the Board of Directors and of the Executive Committee. Further, they also express their opinion on the compensation system through a consultative vote on the Compensation Report.