3.1 General principles
Swisscom’s remuneration policy as it applies to the Group Executive Committee is designed to attract and retain highly skilled, motivated specialists and executives and give them an incentive to achieve sustainable growth of company value. It is systematic and transparent with a long-term orientation, based on the following principles:
- Total remuneration should be competitive, in line with the market as well as the internal salary structure.
- Remuneration is based on performance in line with the results achieved by Swisscom.
- Direct financial participation in the performance of Swisscom shares aligns the interests of management with the interests of shareholders.
The remuneration of the Group Executive Committee is a balanced combination of fixed and variable components. The fixed components include base salary, fringe benefits (primarily car allowance) and retirement benefits, while the variable remuneration consists of a performance-related component paid in both cash and shares.
The members of the Group Executive Committee are required to hold a minimum number of shares to give them a stake in the medium-term performance of Swisscom shares and align their interests with those of shareholders. To meet the minimum shareholding requirements, Group Executive Committee members have the option of receiving up to 50% of their variable performance-related component in shares.
The basic principles of performance-related remuneration and the equity participation plans of the Group Executive Committee are set out in Article 9.1 of the Articles of Incorporation.
The remuneration of the respective Group Executive Committee members is determined on a discretionary basis taking into consideration the external market value of their role, the internal salary structure and individual performance.
To assess the market value of individual roles, Swisscom relies on cross-sector comparisons with Swiss companies as well as international sector comparisons. These two comparative perspectives provide an optimal view of the talent market relevant to Swisscom for executive positions. In reviewing the remuneration of the Group Executive Committee for 2025, Swisscom consulted a benchmark study by PwC that had been commissioned by the Board of Directors in 2024.
The peer group in the benchmark study consists of 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. The 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. Both studies showed that the remuneration for the Group Executive Committee roles was in the lowest quartile of the relevant peer groups.
The Compensation Committee generally reviews the individual remuneration paid to members of the Group Executive Committee every three years of employment. In the year under review, the Board of Directors decided to adjust the Group CEO’s remuneration, reflecting market benchmarks, the CEO’s experience and performance, and maintaining consistency with inflation and salary developments applicable to employees in Switzerland during the same period.