Annual report 2023

Compensation architecture for the Board of Directors

The compensation of the Board of Directors is fixed and does not contain any performance-based variable component. This ensures that the Board of Directors is truly independent in fulfilling its supervisory duties towards the Executive Committee.

The compensation of the Board of Directors is governed by a compensation regulation, is reviewed by the Nomination and Remuneration Committee annually and, if necessary, adjusted by a decision of the full Board of Directors based on a proposal by the Nomination and Remuneration Committee.

The compensation of the Board of Directors consists of a fixed cash component and a restricted share unit (RSU) component with a fixed grant value. The fixed grant value equals 50% of the Board fees (total amount, including the basic fees as well as any additional fees but excluding any lump-sum expenses) while the other 50% are paid out in cash. Each RSU represents a right to receive a medmix share free of charge after a certain period, as further detailed below. Further, members of the Board of Directors are entitled to a lump sum to cover business expenses. In addition to the lump-sum amounts, members of the Board of Directors living abroad will be reimbursed for any expenses incurred in connection with the travel for the attendance of Board meetings.

The ongoing compensation structure and amounts for the members of the Board of Directors are described in the table below:

Compensation structure of the Board of Directors 1)

thousands of CHF

 

Cash component

 

Grant value of restricted share units

 

Lump-sum expenses

Base fee for Board chairmanship 2)

 

150

 

150

 

10

Base fee for Board membership

 

60

 

60

 

5

Additional committee fees:

 

 

 

 

 

 

Committee chairmanship

 

12.5

 

12.5

 

 

Committee membership

 

5

 

5

 

 

1) Compensation for the period of service (from AGM to AGM).

2) The Chairman of the Board of Directors does not receive additional remuneration for committee activities.

The RSU component strengthens the long-term alignment of the interests of the Board of Directors with those of the shareholders. To reinforce the focus of the Board of Directors on the long-term strategy and to strengthen its independence from the Executive.

Committee, the compensation of the Board of Directors contains no performance-related elements and members of the Board of Directors are not entitled to pension benefits.

The amount of compensation for the Chairman and for the other members of the Board of Directors is determined based on the relevant compensation benchmarks. The compensation reflects the responsibility and complexity of their respective function, the professional and personal requirements placed on them, and the expected time required to fulfill their duties.

The members of the Board of Directors are remunerated for their service during their term of office (from one AGM to the next AGM). The cash compensation is paid in quarterly installments for the members of the Board of Directors; the expense lump-sum is paid out typically in December and the RSUs are granted once a year.

The number of RSUs is determined by dividing the fixed grant value by the volume-weighted average share price of the last three weeks prior to the grant date (“grant reference price”).

One-third of the RSUs each vest after the first, second and third anniversary of the grant date respectively.

The following table summarizes the awarded RSUs as well as the corresponding grant reference price and the corresponding vesting schedule of the awarded RSUs:

RSUs for the Board of Directors

 

 

 

 

 

 

 

 

Vested RSUs

thousands of CHF

 

Grant value

 

Grant reference price

 

Number of awarded RSUs

 

2024

 

2025

 

2026

Rob ten Hoedt, Chairman

 

150

 

21.57

 

6’954

 

1/3

 

1/3

 

1/3

Barbara Angehrn

 

65

 

21.57

 

3’014

 

1/3

 

1/3

 

1/3

Daniel O. Flammer

 

65

 

21.57

 

3’014

 

1/3

 

1/3

 

1/3

David Metzger

 

65

 

21.57

 

3’014

 

1/3

 

1/3

 

1/3

Greg Poux-Guillaume

 

60

 

21.57

 

2’782

 

1/3

 

1/3

 

1/3

Marco Musetti

 

73

 

21.57

 

3’361

 

1/3

 

1/3

 

1/3

René Willi

 

65

 

21.57

 

3’014

 

1/3

 

1/3

 

1/3

Board of Directors Total

 

543

 

 

 

25’153