1.3 Personnel expenses
Financial year ended 30.06.2021
Financial year ended 30.06.2020
Salaries and wages
Social security expenses
Pension cost (see note 2.5)
Employment termination expenses
Employees at balance sheet date
Average number of full-time equivalent employees
Average number of employees per segment
Access Solutions AMER
Access Solutions APAC
Access Solutions DACH
Access Solutions EMEA
Key & Wall Solutions
Average number of employees per geographical region
Rest of EMEA
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).
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.
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.