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37 Related parties

Majority shareholder, associates and non-controlling interests

Transactions and balances outstanding at year end with related entities and individuals for 2016 are as follows:

In CHF million   Income   Expense   Receivables   Liabilities
Confederation   233   131   164   233
Associates   36   146   11   6
Non-controlling interests     2     10
Total 2016/Balance at 31 December 2016   269   279   175   249

Transactions and balances outstanding at year end with related entities and individuals for 2015 are as follows:

In CHF million   Income   Expense   Receivables   Liabilities
Confederation   280   139   147   375
Associates   23   109   9   7
Non-controlling interests     2     6
Total 2015/Balance at 31 December 2015   303   250   156   388
Majority shareholder

Pursuant to the Swiss Federal Telecommunication Enterprises Act (“Telekommunikations­unter­nehmungsgesetz”, TEA), the Swiss Confederation (“the Confederation”) is obligated to hold a majority of the share capital and voting rights of Swisscom. On 31 December 2016, the Confederation, as majority shareholder, held 51% of the issued shares of Swisscom Ltd. Any reduction of the Confederation’s holding below a majority shareholding would require a change in law which would need to be voted upon by the Swiss Parliament, which would also be subject to a facultative referendum by Swiss voters. As the majority shareholder, the Swiss Confederation has the power to control the decisions of the general meetings of shareholders which are taken by the absolute majority of validly cast votes. This relates primarily to the approval of dividend distributions and the election of the members of the Board of Directors. Swisscom supplies telecommunication services to and in addition, procures services from the Confederation. The Confederation comprises the various ministries and administrative bodies of the Confederation and the other companies controlled by the Confederation (primarily the Swiss Post, Swiss Federal Railways, RUAG as well as Skyguide). All transactions are conducted on the basis of normal relationships with customers and suppliers and on conditions applicable to unrelated third parties. In addition, financing trans­actions are entered into with the Swiss Post on normal commercial terms.

Associates and non-controlling interests

Services provided to/by associates and non-controlling interests are based upon market prices. The associates are listed in Note 40.

Post-employment benefits funds

Transactions between Swisscom and the various pension funds are detailed in Note 10.

Key management compensation

In CHF million   2016   2015
Current compensation   1.4   1.5
Share-based payments   0.7   0.8
Social security contributions   0.1   0.1
Total compensation to members of the Board of Directors   2.2   2.4
Current compensation   5.5   5.7
Share-based payments   1.0   1.0
Pension contributions   1.1   0.8
Social security contributions   0.5   0.5
Total compensation to members of the Group Executive Board   8.1   8.0
Total compensation to members of the Board of Directors and of the Group Executive Board   10.3   10.4

Individuals in key positions of Swisscom are the members of the Board of Directors and the Group Executive Board of Swisscom Ltd. Compensation paid to members of the Board of Directors consists of basic emoluments plus functional allowances and meeting attendance fees. One third of the entire compensation of the Board of Directors (excluding meeting allowances) is paid in the form of equity shares. Compensation paid to the members of the Group Executive Board consists of a fixed basic salary component settled in cash, a variable performance-related portion settled in cash and shares, services provided and non-cash benefits as well as pension and social insurance benefits. 25% of the variable performance-related share of the members of the Group Executive Board is paid out in shares. The Group Executive Board members may increase this share to 50% at their discretion. See Note 11. The disclosures required by the Swiss Ordinance against Excessive Compensation in Listed Companies (OaEC) are set out in the chapter containing the Remuneration Report. Shares in Swisscom Ltd held by the members of the Board of Directors and Group Executive Board are set out in the Notes to the Consolidated Financial Statements of Swisscom Ltd.