2.1 General principles
Remuneration of the Board of Directors is designed to attract and retain experienced, motivated individuals and is commensurate with the activities and level of responsibility of each member. It also seeks to align the interests of the members of the Board of Directors with those of the shareholders. The basic principles for remuneration of the Board of Directors and the allocation of shares are set out in articles 7.4 and 9.1 of the Articles of Incorporation.
The remuneration consists of a fixed director’s fee based on the member’s role (base fee plus functional allowances), statutory and regulatory employer contributions to social security and the occupational pension scheme, as well as any additional benefits. There is no variable performance-related remuneration. The members of the Board of Directors receive part of their fees in shares and must comply with minimum shareholding requirements to ensure they have a personal stake in the performance of Swisscom’s shares.
Remuneration is normally reviewed in December for the following year. The Board of Directors compares its remuneration with that of companies listed in the Swiss Market Index (SMI), excluding companies with revenue in excess of CHF 20 billion as well as companies in the pharmaceuticals and financial sectors. Remuneration for the 2025 reporting year was reviewed in December 2024 based on an external benchmark study conducted by PwC in spring 2024. The peer group in the benchmark study includes the following companies in the indices SMI and SMI MID (excluding the pharmaceuticals and financial sectors): ABB, Adecco, BKW, Geberit, Givaudan, Holcim, Kuehne+Nagel, Lonza, Richemont, Schindler, SGS, Sika and Sonova. This peer group had a median market capitalisation of CHF 26 billion, median revenue of CHF 11 billion and a median headcount of 34,000 employees. The benchmark study confirmed that the remuneration package for the Board of Directors was in the lowest quartile.