Compensation structure

The compensation system of Arbonia scheme is based on the conviction that the success of a company depends to a considerable extent on the quality of work and dedication of employees. We want to use our compensation system to attract and retain employees with the necessary skills and qualities and to motivate them to deliver a consistently high level of performance. The compensation system is designed to ensure that the interests of top managers are consistent with the interests of Arbonia and its shareholders.

In developing the compensation structure, we follow common market practices of similarly situated companies that operate on the capital market. In 2020, Arbonia commissioned HCM International AG to carry out a benchmark analysis in relation to the compensation of the members of Group Management. This analysis was carried out on the basis of a comparison group with industrial companies domiciled in Switzerland with a similar stock market capitalisation and a comparison group with industrial companies domiciled in Switzerland with a similar revenue and it showed that the compensation of the members of Group Management are of a similar magnitude as those of the two comparison groups.

On the occasion of each Annual General Meeting, the Board of Directors proposes that the Compensation Report be approved by means of a non-binding consultative voting process. In the reporting year, the approval rating for this proposal was 62.65%. The Compensation Report of Arbonia presents the compensation governance and the principles of the compensation system of the Board of Directors and Group Management. In addition, it contains information on the compensation of the Board of Directors and Group Management in the respective financial year, on the roles with economic purpose that the members of the Board of Directors and Group Management exercised at other companies and on the shareholding rights held by the members of the Board of Directors and Group Management.

The Compensation Report has been compiled in accordance with the regulations on compensation at companies whose shares are listed at a stock exchange in the Swiss law that supplements the Swiss Civil Code (Part Five: Code of Obligations) in the fourth section on corporate law and the directive on information relating to corporate governance (RLCG) of 18 June 2021 of the SIX Exchange Regulation.

For the financial year 2023, Arbonia will include a sustainability target in the variable compensation of Group Management for the first time. The Board of Directors determined this at the request of the Nomination and Compensation Committee in the reporting year. This is to create incentives for efforts towards a more sustainable corporate governance.