1.3 Personnel expenses

CHF million

 

 

Financial year ended 30.06.2021

%

 

Financial year ended 30.06.2020

%

Personnel expenses

 

 

1,022.3

100.0

 

1,027.7

100.0

Salaries and wages

 

 

824.8

80.6

 

815.4

79.3

Social security expenses

 

 

162.1

15.9

 

163.8

16.0

Share-based payments

 

 

8.3

0.8

 

6.0

0.6

Pension cost (see note 2.5)

 

 

23.3

2.3

 

25.9

2.5

Employment termination expenses

 

 

2.7

0.3

 

15.4

1.5

Other benefits

 

 

1.1

0.1

 

1.2

0.1

Employees at balance sheet date

 

 

14,998

 

 

15,189

 

Average number of full-time equivalent employees

 

 

14,989

 

 

15,676

 

Average number of employees per segment

 

 

14,989

100.0

 

15,676

100.0

Access Solutions AMER

 

 

2,677

17.9

 

2,811

17.9

Access Solutions APAC

 

 

3,073

20.5

 

3,299

21.0

Access Solutions DACH

 

 

3,315

22.1

 

3,452

22.0

Access Solutions EMEA

 

 

3,358

22.4

 

3,468

22.1

Key & Wall Solutions

 

 

2,001

13.3

 

2,188

14.0

Other

 

 

59

0.4

 

61

0.4

Corporate

 

 

506

3.4

 

397

2.6

Average number of employees per geographical region

 

 

14,989

100.0

 

15,676

100.0

Switzerland

 

 

853

5.7

 

825

5.3

Germany

 

 

2,891

19.3

 

2,971

19.0

Rest of EMEA

 

 

3,606

24.1

 

3,688

23.5

Americas

 

 

3,607

24.1

 

3,825

24.4

Asia Pacific

 

 

4,032

26.8

 

4,367

27.8

Personnel expenses also contain Covid-19 contributions from government for short-time work and other compensation. These grants are recorded in personnel costs with a cost-reducing effect to reflect the economic substance and did not have a material impact on the consolidated financial statements (2020/21 and 2019/20).

Share-based payments

The Nomination and Compensation Committee nominates individual Executive Committee (EC) members and other members of Senior Management for long-term incentive awards. The long-term incentive award is split into two components: in the 2020/21 financial year one-third (2019/20: one-half) is granted in the form of restricted shares of dormakaba subject to a three-year blocking period. This component of the award is designed to provide participants an ownership interest in the long-term value creation of the company by making them shareholders. The other two-thirds (2019/20: one-half) of the award is granted in the form of performance share units of dormakaba subject to a three-year performance-based vesting period. This component of the award is designed to reward participants for the future performance of the earnings per share (EPS) and the relative Total Shareholder Return (TSR) of the company over the three-year performance period. Both performance conditions are equally weighted at 50%. The vesting level may range from 0% to a maximum of 200% of the original number of units granted (maximum two shares for each performance share unit originally granted).

The fair value of the restricted shares corresponds to the value of the closing price of the dormakaba Holding AG share on the SIX Swiss Exchange as at the business day prior to the date of the allocation.

The fair value of the performance share units at the grant date comprises adjustments for lost dividends during the vesting periods and the TSR performance condition. The expenses for the performance share units are allocated on a straight-line basis over the vesting period.

The restricted shares allocated to the members of the Board of Directors (BoD) are also blocked for three years.

Further information about the allocation of treasury shares is disclosed in the note on share capital and treasury shares (3.2), and further details about long-term incentive stock award plans are outlined in the Compensation Report.

Accounting principles

The fair value of the employee services received in exchange for shares is measured at the fair value of the shares as at the grant date and recognized as an expense with a corresponding entry in equity. Expenses for shares that vest immediately are recognized accordingly. Shares that are subject to future services are recognized over the vesting period.

 
 

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