3.4 Minimum shareholding requirement

The members of the Group Executive Committee are required to hold a minimum number of Swisscom shares, corresponding to two years’ base salary for the Group CEO and one year’s base salary for the other members of the Group Executive Committee. Members build up the required shareholding over four allocation periods with the blocked share component of their variable remuneration and, if necessary, share purchases on the open market, taking internal trading restrictions into consideration. The Compensation Committee reviews compliance with the shareholding requirement annually. Any member whose shareholding falls below the minimum requirement due to a drop in the share price or a salary adjustment must make up the difference by the next review. In justified cases, such as personal hardship or legal obligations, the Chair of the Board of Directors may approve individual exceptions.