Compensation at a glance

5 min.

Summary of current compensation system of the BoD

To ensure their independence, BoD members 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 the BoD in financial year 2019/20

The compensation awarded to the BoD in financial year 2019/20 is within the limits approved by the shareholders at the AGM:

Compensation period

 

Approved amount (CHF)

 

Effective amount (CHF)

AGM 2018 – AGM 2019

 

2,190,000

 

1,820,000

AGM 2019 – AGM 2020

 

2,390,000

 

To be determined*

*The compensation period is not yet completed, a definitive assessment will be provided in the 2020/21 Compensation Report.

Summary of current compensation system of the EC

The compensation system applicable to the 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 the EC in financial year 2019/20

The compensation awarded to the EC in financial year 2019/20 is within the limits approved by the shareholders at the AGM:

Compensation period

 

Approved amount (CHF)

 

Effective amount (CHF)*

Financial year 2019/20

 

18,000,000

 

12,442,335

*Includes the replacement award for the (designated) COO AS AMER in the amount of CHF 517,066. Further details can be found in the chapter "Compensation architecture for the EC" under “6. Assessment of actual compensation paid to the EC in the financial year 2019/20”.

Performance in financial year 2019/20

The company’s business performance and results for the financial year 2019/20 reflect a year of two very different halves. Whereas the first half-year was largely in line with expectations, the outbreak and spread of Covid-19 led to an unprecedented slump in business activity from February 2020 to the end of the financial year. As a result, the company recorded negative organic sales growth of 6.9% (previous year +1.3%) and EBITDA of CHF 325.0 million (previous year CHF 448.0 million; –27.5%). Correspondingly, net profit was down by 35.0% to CHF 164.1 million. Consequently, the average short-term incentive payout is significantly below previous year’s level.

Compensation governance

Introductory notes from the Compensation CommitteeBasic principles of compensation

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