Compensation at a glance
5 min.Summary of current compensation system of Board of Directors
To ensure their independence, members of the Board of Directors (BoD) only receive a fixed compensation paid in cash and shares restricted for three years. The amount of compensation depends on the function on the BoD.
Shareholding ownership guideline
The BoD members are required to own at least 500 dormakaba shares within three years of tenure.
Compensation of BoD in financial year 2018/19
The compensation awarded to the BoD in financial year 2018/19 is within the limits approved by the shareholders at the Annual General Meetings (AGM):
Compensation period |
| Approved amount (CHF) |
| Effective amount (CHF) |
AGM 2017 – AGM 2018 |
| 2,750,000 |
| 2,345,000 |
AGM 2018 – AGM 2019 |
| 2,190,000 |
| To be determined* |
*The compensation period is not yet completed, a definitive assessment will be provided in the Compensation Report for FY 2019/20
Summary of current compensation system of Executive Committee
The compensation system applicable to the Executive Committee (EC) 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 EC are required to own a minimum multiple of their annual base salary in dormakaba shares within five years of tenure:
CEO |
| 300% of annual base salary |
EC member |
| 200% of annual base salary |
Compensation of EC in financial year 2018/19
The compensation awarded to the EC in financial year 2018/19 is within the limits approved by the shareholders at the AGM:
Compensation period |
| Approved amount (CHF) |
| Effective amount (CHF) |
Financial year 2018/19 |
| 19,500,000 |
| 12,915,283 |
Performance in financial year 2018/19
The 2018/19 financial year was satisfactory. Profitability increased further, which is reflected in an increase in all key earnings figures and operating sales margins. At CHF 448.0 million, EBITDA exceeded the previous year's figure by CHF 17 million (+3.9%) and led to an EBITDA margin of 15.9% (previous year 15.2%). Net profit improved by 5.8% to CHF 252.5 million. Only the organic sales growth of 1.3% was lower than expected, in particular due to lower growth momentum in the second half of the financial year. Overall, sales amounted to CHF 2,818.3 million. Consequently, the average short-term incentive payout compared to base salaries is above that of the previous year.
Compensation governance
- The Compensation Committee supports the BoD with matters related to the compensation of the BoD and of the EC.
- Shareholders approve the maximum compensation amounts of the BoD and of the EC. Further, they also express their opinion on the compensation system through a consultative vote on the Compensation Report.