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 2020/21

The compensation awarded to the BoD in financial year 2020/21 is within the limits approved by the shareholders at the AGM:

Compensation period

 

Approved amount (CHF)

 

Effective amount (CHF)

AGM 2019 – AGM 2020

 

2,390,000

 

1,944,500

AGM 2020 – AGM 2021

 

2,940,000

 

To be determined*

*The compensation period is not yet completed, a definitive assessment will be provided in the 2021/22 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 2020/21

The compensation awarded to the EC in financial year 2020/21 is within the limits approved by the shareholders at the 2020 AGM:

Compensation period

 

Approved amount (CHF)

 

Effective amount (CHF)*

Financial year 2020/21

 

18,000,000

 

13,652,662

*Includes the replacement award for the new CEO in the amount of CHF 1,251,166. 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 2020/21”.

Performance in financial year 2020/21

dormakaba finished the 2020/21 financial year with good business results that marked an improvement on the previous year. While profitability was in line with the guidance, organic growth was slightly higher. Overall year-on-year organic sales growth came to 1.3%. EBITDA reached CHF 353.1 million (previous year CHF 325.0 million) with an improved EBITDA margin of 14.1% on 12.8% in the previous year. Net profit increased by 17.8% year-on-year to CHF 193.3 million (previous year CHF 164.1 million) primarily because of the significantly improved operating profit and a better financial result. Consequently, the average short-term incentive payout is above prior year’s level.

Compensation governance

Introductory notes from the Compensation CommitteeBasic principles of compensation

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