11 Share-based payments

Management Incentive Plan

The Management Incentive Plan is an equity-share plan for members of the Group Executive Board and Board of Directors as well as for other members of management. The members of the Board of Directors are paid a portion of their emoluments in Swisscom shares. Members of the Group Executive Board receive 25% of their variable performance-related salary component in the form of Swisscom shares. Group Executive Board members may increase this share up to a maximum of 50% at their discretion. The shares are allocated based on their tax values. The level of the earnings-related compensation and the number of shares allocated are determined in the subsequent business year once the financial statements are finalised. The shares allocated to the members of the Group Executive Board are based on the variable earnings-related compensation of the prior year as reported. The tax value per share amounts to CHF 473 (prior year: CHF 449). The shares are subject to a retention period of three years from the grant date. The shares are vested immediately upon delivery.

In 2015, the allocation and cost of share-based payments to the members of the Board of Directors and of the Group Executive Board may be analysed as follows:

In 2014, the allocation and cost of share-based payments to the members of the Board of Directors and of the Group Executive Board may be analysed as follows:

Other share-based payments plans

As recognition for exceptional services rendered in the prior year, equity share premiums and 4,520 shares with a market price of CHF 535 were granted to employees gratuitously for exceptional services rendered and an expense of CHF 2 million was recorded.