Basic principles of compensation

The compensation system of dormakaba reflects the Companyʼs commitment to attracting, motivating, and retaining highly qualified executives and employees. The compensation framework is market-aligned and designed to support the execution of the company’s strategy by balancing fixed and performance-related compensation elements, while fostering sustainable long-term value creation for shareholders.

The compensation for BoD members consists exclusively of a fixed payment in cash and restricted shares. This ensures that the BoD remains independent in exercising its supervisory duties toward the EC.

The compensation for EC members consists of fixed compensation in cash and benefits, as well as variable compensation through an annual Short-Term Incentive (STI) plan, paid in cash, and a Long-Term Incentive (LTI) plan granted in the form of Performance Share Units (PSUs). The key principles of the EC compensation system are illustrated below.

The compensation system for EC members and its four principles