Compensation at a glance
BoD members only receive fixed compensation paid in cash and shares restricted for three years. The amount of compensation depends on the function within the BoD.
Summary of current compensation system of the BoD
|
Basic Compensation p.a. (in CHF) |
|
|
|
|
|
|
|
BoD Chair |
|
BoD Member |
|
in cash |
|
335,000 |
|
100,000 |
|
in restricted shares |
|
300,000 |
|
90,000 |
|
Total |
|
635,000 |
|
190,000 |
|
|
|
|
|
|
|
+ |
|
|
|
|
|
|
|
|
|
|
|
Additional Compensation p.a. (in CHF) |
|
|
|
|
|
|
|
Committee Chair |
|
Committee Member |
|
Audit Committee |
|
60,000 |
|
20,000 |
|
Nomination and Compensation Committee |
|
60,000 |
|
20,000 |
No additional committee fees are due to the BoD Chair.
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 2023/24
The compensation awarded to the BoD in financial year 2023/24 is within the limits approved by the shareholders at the AGM:
|
Compensation period |
|
Approved amount (CHF) |
|
Effective amount (CHF) |
|
AGM 2022 – AGM 2023 |
|
3,200,000 |
|
2,480,000 |
|
AGM 2023 – AGM 2024 |
|
3,200,000 |
|
To be determined 1) |
1) The compensation period is not yet completed; a definitive assessment will be provided in the 2024/25 Compensation Report.
Summary of current variable compensation system of the EC
The variable 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:
Short-term incentive mechanism
Variable annual cash payment based on the achievement of Group financial performance indicators.
Individual STI target amounts are determined based on role, market requirements and under strict consideration of our benchmark and pay mix policy as described in the section Total Target Compensation Approach.
Long-term incentive mechanism
Annual grant of Performance Share Units (PSU) based on a monetary amount, subject to a three-year vesting period.
Individual LTI target amounts are determined based on role, market requirements and under strict consideration of our benchmark and pay mix policy as described in the section Total Target Compensation Approach.
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 2023/24
The compensation awarded to the EC in financial year 2023/24 is within the limits approved by the shareholders at the 2022 AGM:
|
Compensation period |
|
Approved amount (CHF) |
|
Effective amount (CHF) |
|
Financial year 2023/24 |
|
19,300,000 |
|
14,175,589 |
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.