New remuneration regulations came into effect for the Board of Directors on 1 January 2019. These regulations incorporate changes with respect to methodology, governance and disclosure. The remaining Raiffeisen Switzerland remuneration models and the associated regulations will be carefully reviewed as part of a regular process in the 2019 financial year.
In summary, the new remuneration system for the Board of Directors includes the following changes:
- –The remuneration of the Board of Directors was determined as of 1 January 2019 using a market comparison. The Board of Directors made this determination while seeking to strike a balance between providing competitive, attractive remuneration and keeping costs reasonable for Raiffeisen Switzerland.
- –The new remuneration system stipulates lump sums for basic and committee remuneration depending on the Board of Directors member's role and eliminates the old meeting attendance fees and meeting expenses. The proposed changes aim to strengthen the links between the execution of BoD-approved strategy and our remuneration system. Furthermore, the consistency of this approach reinforces our culture of sustainable performance, personal responsibility and acceptable risk tolerance.
- –The new BoD remuneration models reduce overall BoD remuneration significantly from prior-year levels starting in 2019.
- –The Board of Directors will now review and set its remuneration in two-year intervals instead of the four-year intervals used before.
- –The role of Vice Chairman of the Board of Directors will be given more responsibility. In the future, the Vice Chairman will work closely with the Chairman of the Board of Directors on all BoD issues (for better familiarity with official portfolio) so that the Vice Chairman can immediately succeed or fill in for the Chairman without entailing a long orientation/loss of knowledge in crisis situations. This is important for a systemically important bank for good governance reasons.
- –In future, remuneration paid to Executive Board members will be shown with employee contributions to pension plans and social insurance as total remuneration.
- –The Board of Directors will file a motion at the 2019 Delegate Meeting to change the Raiffeisen Switzerland Articles of Association by defining the approval process for the remuneration report and the remuneration of the Board of Directors.