Compensation
Components of the compensation package
A value-based compensation program was introduced for the Board of Directors, the Executive Committee, and the Senior Management in 2003. The aim of the program is to link the variable compensation paid to participants in the plan to the long-term added value generated by the Straumann Group. The concept builds on the principle of “Economic Profit” (EP) and is based on a multi-year plan that complies with shareholders’ expectations.
In addition to the individual fixed salaries, the variable compensation component takes the form of an individual cash remuneration (cash bonus). The multiplier for calculating the available bonus is derived from the economic profit improvement per fiscal year. The available bonus is credited to a bonus bank and only paid out in part, with the balance being carried forward to the next year. This allows the Company to take both positive and negative fluctuations in its business development into account and to take a long-term approach to variable compensation.
In addition to the variable compensation, a fixed number of options, determined on an individual basis, are also granted. The options, which are issued as warrants (1 option = 50 warrants), have a term of up to 6 years and a vesting period of 1–3 years. The exercise price of the options is the share price at the end of December. The value of the options is determined in line with the Black-Scholes method at grant date and amortized as personnel expense over the vesting period.
For details regarding compensation, granted options, participation in the share capital and management as well as related-party transactions please refer to the PDF file "Compensation" (PDF, 194 KB).
