Compensation at a glance

5 min.

To ensure their independence, BoD members only receive fixed compensation paid in cash and shares restricted for three years. The amount of compensation depends on the function on the BoD.

Summary of current compensation system of 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 2021/22

The compensation awarded to the BoD in financial year 2021/22 is within the limits approved by the shareholders at the AGM:

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:

Compensation of the EC in financial year 2021/22

The compensation awarded to the EC in financial year 2021/22 is within the limits approved by the shareholders at the 2020 AGM:

Performance in financial year 2021/22

dormakaba posted strong growth despite external headwinds for financial year 2021/22. Organic sales growth was at 7.7% and above the guidance range of 3% to 5%. The strong organic growth and associated higher volumes were also reflected in a higher adjusted EBITDA, which excludes items affecting comparability. Adjusted EBITDA increased by 2.8% and amounted to CHF 372.3 million (previous year: CHF 362.0 million). The adjusted EBITDA margin was below guidance at 13.5% (previous year: 14.5%), impacted by shortages of electronic components, labor, and building materials as well as by accelerated inflation which could only partly be compensated with price increases. Items affecting comparability were at CHF –88.6 million on EBIT (previous year: CHF –9.3 million) and mainly related to the Mesker divestment in June 2022 and the strategy preparation and implementation.

Net profit was CHF 122.5 million (previous year: CHF 193.3 million). Excluding the effect of the divestment of the Mesker including tax and foreign currencies (CHF 61.4 million), the underlying net profit was CHF 183.9 million (a year-on-year decrease of 4.9%).

Compensation governance

• The NCC 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.