Corporate governance

Remuneration report​

Letter from the Chairman of the Nomination and
Remuneration Committee

Dear Sir or Madam,

The defining characteristic of 2021 was change. Once again, there were many challenges to overcome and accompanying opportunities to be seized. Raiffeisen Switzerland pushed ahead with many projects on issues involving the Nomination and Remuneration Committee. The focus was on increasing attractiveness as an employer, electing replacement directors at Raiffeisen Switzerland and turning the branches into independent Raiffeisen banks. With all issues, what lies at the heart is and remains the dialogue between the Raiffeisen banks and Raiffeisen Switzerland.

An attractive employer

Raiffeisen Switzerland was able to position itself as a modern and attractive employer in the year under review. The new remuneration model for staff at Raiffeisen Switzerland came into effect on 1 January 2021. The individual bonus system was replaced by a collective profit-sharing element. At the same time, employees’ gross salaries were increased by 0.5%.
The new remuneration policy focuses on gender equality in pay. The wage equality analysis was reviewed and confirmed by the social partners' specialist unit for equal pay in the banking sector (FS-LoBa). The analysis showed that equal pay for men and women is in place at Raiffeisen Switzerland within the specified tolerance limits. As a result, Raiffeisen Switzerland was awarded the Fair-On-Pay certificate.
The new remuneration policy is also consistent with the cooperative values of Raiffeisen and underscores our "We" culture. Thanks to diverse and continually learning teams and project groups, Raiffeisen Switzerland has laid the foundations for developing further solutions for the Raiffeisen Group. The fact that the manner of collaboration within the Raiffeisen Group is constantly considered and, above all, lived out, is highlighted by the Swiss HR Award won by Raiffeisen in the "Culture and Change" category.

Elections of replacement directors of Raiffeisen Switzerland

Following the resignation of Guy Lachappelle with effect from 31 July 2021, the post of Chairman of the Board of Directors of Raiffeisen Switzerland had to be filled. Those involved in the nomination process, apart from the members of the Nomination and Remuneration Committee, included a delegation of representatives of the Raiffeisen banks and an executive search firm.
The elections of Thomas A. Müller as Chairman and Sandra Lathion-Zweifel as a new director at the Extraordinary General Meeting in December 2021 restored the Board of Directors to full strength and added strategic skills.

Making the branches independent

The formal consent of the owners of Raiffeisen Switzerland to making the branches independent was an essential and logical step towards strengthening our cooperative Raiffeisen model. Of the six branches, Bern and Thalwil became independent in January 2022 and are now acting as autonomous Raiffeisen banks. The four remaining branches of Raiffeisen Switzerland (St. Gallen, Winterthur, Basel and Zurich) are expected to become independent Raiffeisen banks within the Raiffeisen Group by 2023. The Nomination and Remuneration Committee, along with the Human Resources division of Raiffeisen Switzerland, was heavily involved in nominating the directors of the future Raiffeisen banks. The proposed candidates for the strategic level of management at the new Raiffeisen banks have now largely been selected.

Dialogue with the Raiffeisen banks

Knowledgeable representatives of the Raiffeisen banks were also involved in the arrangements for nominating candidates for the successful elections of replacement directors and the smooth process of making the branches of Raiffeisen Switzerland independent. The members of the Board of Directors of Raiffeisen Switzerland visited Raiffeisen banks regularly during the year under review. The dialogue between Raiffeisen Switzerland and the Raiffeisen banks was also advanced in the year under review by a number of live-streamed events on various topics and projects. The lively and constructive exchange of views between Raiffeisen Switzerland and the representatives of the Raiffeisen banks was appreciated by all involved.
At the Annual General Meeting in 2021, both the Remuneration Report 2020 and the maximum gross amounts of remuneration for the Board of Directors and the Executive Board of Raiffeisen Switzerland for the following financial year were submitted to a consultative vote. Dialogue and transparency between Raiffeisen Switzerland and the Raiffeisen banks were further strengthened in the year under review in the interests of the Raiffeisen Group.

Outlook

The Board of Directors of Raiffeisen Switzerland strongly believes that the remuneration policy introduced in 2021 will sit better with the values of the cooperative and also make it possible to remain an attractive employer.
In the current financial year, the Board of Directors will intensify the implementation of the Raiffeisen 2025 strategy and concentrate on the various associated projects, thereby making a key contribution to the success of the Raiffeisen Group. Another objective is to emphasise our stability, facilitating continued dialogue between the various owners’ committees.
On behalf of the Nomination and Remuneration Committee, I would like to thank all the members of the committees and working groups for playing their part in successfully managing the activities in 2021. I look forward to continued cooperation, new and exciting topics, and a constructive professional exchange of ideas.
CorpGov_08_Unterschrift_Rauber

Thomas Rauber

Chairman of the Nomination and Remuneration Committee
of the Board of Directors of Raiffeisen Switzerland
22. April 2022

Raiffeisen Group Remuneration Report

The Raiffeisen Group (Raiffeisen Switzerland, including the Raiffeisen banks and consolidated companies) paid CHF 1,106,395,732 in total remuneration in the year under review. The share of variable remuneration (excluding employer pension plan and social insurance contributions) totalled CHF 58,621,036. The difference in the total variable remuneration pool at the Raiffeisen Group between the financial years 2020 and 2021 is mainly attributable to the change in the remuneration system at Raiffeisen Switzerland. Remuneration was rendered exclusively in the form of cash. None of it was deferred.
Total remuneration 2021
in CHF20202021
Total Raiffeisen Group remuneration11,059,025,3681,106,395,732
of which total Raiffeisen Group
variable remuneration pool
97,344,61758,621,036
1 Excluding employer pension plan and social insurance contributions.
A competitive remuneration model plays a key role in successfully positioning Raiffeisen Switzerland as an attractive employer. The remuneration system is designed to attract skilled employees on the labour market and to retain them, among other things. Outstanding and extraordinary achievements are recognised and rewarded.
Raiffeisen Switzerland’s remuneration system is based on provisions of laws, rules and regulations, in particular FINMA Circular 2010/1 ("Remuneration schemes").

Raiffeisen Switzerland Remuneration Report

Remuneration governance

The Nomination and Remuneration Committee of Raiffeisen Switzerland is responsible for implementing the regulations issued by the Board of Directors of Raiffeisen Switzerland. It consists of at least three members of the Board of Directors. The Nomination and Remuneration Committee reviews proposals concerning the remuneration of the Executive Board and Board of Directors of Raiffeisen Switzerland and submits recommendations to the Board of Directors for approval. In addition, the Nomination and Remuneration Committee and the Board of Directors jointly evaluate the performance of the Chairman of Raiffeisen Switzerland's Executive Board and sit down with him to jointly review the performance assessments of the other Executive Board members.
Raiffeisen Switzerland’s Board of Directors is responsible for the following:
  • Outlining the remuneration policy in the form of regulations for Raiffeisen Switzerland and recommendations for the Raiffeisen banks
  • Approving the annual remuneration report submitted to the Board by the Nomination and Remuneration Committee
  • Reviewing its remuneration policy on a regular basis and whenever there are indications that reviews or revisions may be necessary
  • Having the structure and implementation of its remuneration policy checked regularly by external auditors and by Internal Auditing if necessary
  • Regularly determining the amount of the total variable remuneration pool
  • Defining the fixed and variable components of the remuneration for members of the Executive Board and the Head of Internal Auditing, including occupational pension contributions
The Nomination and Remuneration Committee deals with remuneration topics at its meetings. At least four meetings are required each year. In 2021, the Nomination and Remuneration Committee held 20 meetings (including conference calls) with a general attendance rate of 100%. The Nomination and Remuneration Committee focused on the following areas in 2021:
  • Electing replacement directors at Raiffeisen Switzerland
  • Making the six branches independent
  • The attractiveness of Raiffeisen Switzerland as an employer
  • Intensive dialogue with internal and external stakeholders
The Chairman of the Nomination and Remuneration Committee invites other members of the Board of Directors, the Executive Board, other experts, remuneration advisers and external legal advisers to attend if needed. Whenever discussions pertain to remuneration, the person whose remuneration is being discussed is not involved.
The remuneration approval structure can be summarised as follows:
Remuneration approval structure | Raiffeisen Switzerland
IssueNomination and Remunerations CommitteeMember of Board of Directors
Development or amendment of the remuneration policyRecommendationApproval
Remuneration reportRecommendationApproval
Remuneration for
Chairman of the Executive BoardRecommendationApproval
Other members of the Executive Board and Head of Internal Auditing1Recommendation1Approval
Member of Board of DirectorsRecommendationApproval
Total amount of the variable remuneration of Raiffeisen SwitzerlandRecommendationApproval
1 In the presence of the Chairman of the Executive Board (without the remuneration of the Head of Internal Auditing being decided).
At the 2021 General Meeting of Raiffeisen Switzerland, the Board of Directors proposed that the 2020 Remuneration Report be approved in a consultative vote. This proposal was approved by the General Meeting with 93.3% of the votes. In addition, Internal Auditing regularly assesses the operational implementation of the remuneration regulations at Raiffeisen Switzerland to ensure that Raiffeisen Switzerland’s remuneration system is being complied with.

Remuneration policy

The remuneration policy is designed to ensure that the interests of our employees are aligned with those of our clients. Raiffeisen Switzerland has an independent remuneration system that governs the remuneration paid to the Board of Directors and the Executive Board in detail and lays out basic principles for the total remuneration paid to all Raiffeisen Switzerland employees. Raiffeisen Switzerland also issues remuneration recommendations to the Raiffeisen banks.
Remuneration caps are defined for all risk carriers and employees. There are limits on variable components. All remuneration is paid in the form of non-deferred cash. The remuneration system provides adequate incentives to drive and differentiate performance.
Being a cooperative, Raiffeisen Switzerland strives for stable returns and sustained success, which significantly affects the remuneration system. The remuneration policy aims to provide continuity. Incentives are designed to encourage appropriate business conduct and avoid potential conflicts of interest and excessive risk appetite.
The remuneration system is aligned with the business strategy. It gives due consideration to the Group's goals, values, cooperative culture and long-term, sustainable focus.
Furthermore, Raiffeisen Switzerland attaches great importance to social responsibility and having a remuneration system that is both simple and transparent. The remuneration system should be attractive enough to recruit and motivate talent and to retain it over the long term. At the same time, Raiffeisen Switzerland believes in equal pay for equal work. The results of two studies on wage equality, conducted at Raiffeisen Switzerland by the same independent partner in 2014 and 2017, clearly showed that Raiffeisen Switzerland pays equal wages to men and women. These results were confirmed once again in a third study on wage equality successfully carried out under the revised version of the Federal Act on Gender Equality (GEA) during the year under review. The social partners’ specialist unit for equal pay in the banking sector (FS-LoBa) reviewed and certified the analysis, the fact that it was carried out in a formally correct manner and that all the requirements for achieving the FS-LoBa seal of approval for the sector were met. Men and women receive equal pay within the company. Raiffeisen Switzerland was therefore awarded the Fair-On-Pay certificate.
The following table contains a summary of the principles of the remuneration policy of Raiffeisen Switzerland.
Principles of the remuneration policy | Raiffeisen Switzerland
Principles of the remuneration policy | Raiffeisen Switzerland
TransparencyThe structure of the remuneration system of Raiffeisen Switzerland is simple and transparent; the principle of “equal pay for equal work” applies as an absolute matter of course.
Strategic directionThe remuneration system is aligned with the business strategy. It gives due consideration to the goals, values and cooperative culture, as well as the long-term and sustainable alignment of the Group.
Consideration of riskIncentives are designed to encourage appropriate business conduct and avoid potential conflicts of interest and excessive risk behaviour.
Performance orientationThe remuneration system provides adequate incentives to drive and differentiate performance.
Market positioningThe remuneration system is attractive enough to recruit talented individuals, motivate them and ensure their long-term loyalty to the company. The appropriateness of the remuneration is reviewed based on regular market comparisons.

Remuneration system

For all employees (including members of the Executive Board, senior management and employees with controlling roles), remuneration comprises the following elements:
  • Fixed remuneration in line with the market: Every employee has an individual contract establishing the fixed remuneration. This is based on a clearly defined role, as well as the employee’s skills and knowledge. It also has to be competitive in the labour market. The entire fixed remuneration is paid in cash.
  • Collective profit-sharing element: The variable remuneration is based on the sustainable success of the Group and for the first time will be paid out for the year under review in the form of a collective profit-sharing element. It makes up a small percentage of total remuneration. This low percentage depends on the pay grade. All employees on the same pay grade are treated equally, regardless of the area they work in. This is Raiffeisen Switzerland’s way of emphasising collaboration and collective team spirit. Variable remuneration can be paid to employees in all positions, including those with controlling roles. Special care is taken to prevent the remuneration system giving employees with controlling roles incentives that could cause conflicts of interests with their duties. The collective profit-sharing element is a voluntary, variable benefit provided by Raiffeisen as the employer. It is based on the differentiated understanding of roles at Raiffeisen Switzerland as a service provider to the Raiffeisen banks, the implementer of Group projects and an attractive, progressive and results-oriented employer. Employees generally have no contractual guarantee to be paid variable remuneration. All variable remuneration is paid in non-deferred cash. The following factors set the guidelines for the final decision by the Board of Directors on whether to pay a collective profit-sharing element and, if so, in what amount:
    • Implementation of the Group strategy
    • The financial result of Raiffeisen Switzerland
    • The diversity of the organisation
    • Employee satisfaction and
    • Public perception of Raiffeisen.
In addition, fringe benefits are granted within the framework of applicable regulations and directives and in line with the industry standard.

Recognition of special team performance

On 1 January 2021, a new programme to recognise special team performance came into effect at Raiffeisen Switzerland. As part of this, special performance by intra and inter-disciplinary teams such as organisational units, project teams and working groups is given visibility in the organisation both top-down and bottom-up, and rewarded directly.
Managers can flexibly and unbureaucratically show recognition of above-average performance all year round – for example in the form of a joint team event.

Determination of the remuneration for the Board of Directors

The members of Raiffeisen Switzerland’s Board of Directors receive remuneration commensurate with their respective responsibilities and time commitment. Additionally, members belonging to a committee, heading a committee or chairing the Board of Directors receive higher pay. The members of the Board of Directors do not receive variable remuneration. The Board of Directors has no performance indicators that would encourage unnecessary risk-taking.
In accordance with the remuneration regulations in force, the Chairman of the Board of Directors received fixed remuneration of CHF 700,000 and was not entitled to receive committee fees. The Deputy Chairman received fixed remuneration of CHF 140,000. The full members of the Board of Directors received a fixed remuneration of CHF 90,000. The Chairman of the Board of Directors received a lump-sum expense allowance of CHF 12,000 for his representative duties. The other members of the Board of Directors receive an annual lump-sum expense allowance of CHF 6,000.
For their membership of the four committees (the Strategy and Finance Committee, the Audit Committee, the Risk Committee and the Nomination and Remuneration Committee), full members of the Board of Directors also received the following remuneration:
  • As member: CHF 30,000
  • As Chair: CHF 50,000
If a member of the Board is appointed to a position on an interim basis, they are entitled to the remuneration for that position. The remuneration table below shows the total remuneration paid to the individual members of the Board of Directors. Loans granted to members of the Board of Directors are disclosed in Note 17 to the Annual Report. Loans to members of the Nomination and Remuneration Committee are approved by the Board of Directors, while loans to all other members of the Board of Directors are approved by the Nomination and Remuneration Committee.

Determination of the remuneration for the Executive Board

The gross caps communicated at the Delegate Meeting on 15 June 2019 – no more than CHF 1,500,000 for the Chairman of the Executive Board and generally less than CHF 1,000,000 for each of the other members of the Executive Board – were once again adhered to in 2021. The annual remuneration of the Executive Board consists of fixed and variable remuneration and fringe benefits. Loans granted to Members of the Executive Board and the Head of Internal Auditing are disclosed in Note 17 to the Annual Report. Loans to members of the Executive Board are approved by the Nomination and Remuneration Committee. Furthermore, the Executive Board enjoys industry-standard preferential terms, as do the other employees.

Fixed remuneration

Fixed remuneration for Executive Board members and the Head of Internal Auditing is set in accordance with their labour market value, the requirements of the assigned department, management responsibilities and seniority. Each member of the Executive Board and the Head of Internal Auditing receive a fixed basic salary that is reviewed each year by the Nomination and Remuneration Committee. The members of the Executive Board and the Head of Internal Auditing receive market-standard pension and fringe benefits.

Collective profit-sharing element

The process and guidelines for setting variable remuneration in the form of a collective profit-sharing element for the members of the Executive Board and the Head of Internal Auditing are identical to those for qualifying employees not on the Executive Board.
The Board of Directors sets the amount of the collective profit-sharing element that will be paid to the members of the Executive Board and the Head of Internal Auditing. This is based on the maximum remuneration rates set out in the remuneration regulations.

Separate handling of risk carriers not on the Executive Board discontinued

With the introduction of the new remuneration model in 2021, the performance targets for employees with access to the market and trading opportunities are no longer linked to individual variable remuneration. Since 1 January 2021, these employees have not enjoyed any special treatment when it comes to variable remuneration. As with the variable remuneration for all other permanent employees of Raiffeisen Switzerland, for employees with access to the market and trading opportunities it is based on the sustainable success of the Group and is paid out in the form of a collective profit-sharing element.
The remuneration structure is designed to ensure the variable remuneration paid to employees with controlling roles in no way depends on the risks they monitor.

Remuneration for the Board of Directors

In 2021, the remuneration principles in place since 1 January 2019 and presented to the Delegate Meeting in June 2019 continued to apply. As a result, the members of the Board of Directors of Raiffeisen Switzerland received remuneration (excluding contributions to pension plans and social insurance) totalling CHF 1,964,275 for 2021. This is within the limits of total maximum gross remuneration approved in a consultative vote at the 2020 General Meeting. The total employer share of social insurance contributions for the members of the Board of Directors came to CHF 378,482 for 2021. Details of the remuneration of the individual Board members and their positions are provided in the table below.
Remuneration for the Board of Directors | Raiffeisen Switzerland
in CHF


Name
Position1 Base remuneration Committee remuneration Total gross remunerationFlat-rate expenses Employer pension plan and social insurance contributions2
Müller, Thomas A.- Chairman of the Board of Directors, Member of the RC (since 8 December 2021)
- Member of the Board of Directors, Chair of the RC and Member of the AC (until 7 December 2021)
129,00475,189204,1936,38740,169
Gantenbein, Pascal- Vice-Chairman of the Board of Directors (until 25 July 2021 and since 8 December 2021)
- Chair of the RC, Member of the SFC (since 8 December 2021)
- Acting Chairman of the Board of Directors (15 July 2021 to 7 December 2021)
- Chair of the SFC and member of the RC (until 25 July 2021)
369,03141,937410,9688,38777,765
Lachappelle, Guy
(departure on 31.07.2021)
- Chair of the Board of Directors
- Member of the SFC and NRC
408,333_408,3337,00076,473
Golob, Andrej- Member of the Board of Directors and Member of the SFC
- Acting Vice-Chairman of the Board of Directors (26 July 2021 to 7 December 2021)
108,41430,000138,4146,00027,017
Lathion-Zweifel, Sandra- Member of the Board of Directors
- Member of the AC and NRC
6,0073,6719,6783872,159
Rauber, Thomas- Member of the Board of Directors, Chair of the NRC
- Member of the AC (since 8 December 2021)
90,00051,936141,9366,00027,906
Roussy, Olivier- Member of the Board of Directors, Member of the AC
- Member of the SFC (until 25 July 2021 and since 8 December 2021)
Acting Chair of the SFC (26 July 2021 to 7 December 2021)
90,00078,414168,4146,00032,986
Schwab, Beat- Member of the Board of Directors
- Chairman of the SFC (since 8 December 2021)
- Member of the NRC
- Member of the AC (until 7 December 2021))
- Member of the SFC (26 July 2021 to 7 December 2021)
90,00072,339162,3396,00031,663
Valenzano Rossi, Karin- Member of the Board of Directors
- Member of the RC and NRC
90,00060,000150,0006,00028,727
Walker, Rolf- Member of the Board of Directors
- Chair of the AC and Member of the RC
90,00080,000170,0006,00033,617
Total 2021  1,470,789493,4861,964,27558,161378,482
Total 20201,587,500478,7502,066,25035,250390,051
1SFC = Strategy and Finance Committee
AC = Audit Committee
RC = Risk Committee
NRC = Nomination and Remuneration Committee
2Employer contributions to the pension plan and social insurance comprise AHV/IV/EO and ALV including pension plans.

Remuneration for the Executive Board

Total remuneration paid to members of the Executive Board and the Head of Internal Auditing of Raiffeisen Switzerland for the year under review (excluding contributions to pension plans and social insurance) came to CHF 9,017,658. This is within the limits of total maximum gross remuneration approved in a consultative vote at the 2020 General Meeting. Of this, CHF 1,476,364 was attributable to the basic salary and variable pay of Heinz Huber, Chairman of the Executive Board of Raiffeisen Switzerland; this was the highest sum paid to an individual member of the Executive Board. Employer pension plan and social insurance contributions total CHF 3,003,917*. CHF 450,099 of this amount was paid to Heinz Huber. No additional compensation is paid for business-related board of director mandates of Executive Board members, as this is covered by the basic remuneration. Information on the remuneration at the Executive Board level is provided in the following table.

 

* Projection, since the variable remuneration will be paid in April 2022.

Remuneration for the Executive Board | Raiffeisen Switzerland
in CHF


Person/entity
Base remuneration Committee remuneration Total gross remunerationFlat-rate expenses Employer pension plan and social insurance contributions1
Huber, Heinz (Chairman of the Executive Board)
20211,318,182158,1821,476,36424,000450,099
20201,100,000375,0001,475,00024,000406,416
Executive Board as well as the Head of Internal Auditing (total)2,3
20218,147,596870,0629,017,658190,7003,003,917
20206,005,0002,205,0008,210,000177,3642,511,678
Former members of the Executive Board
2021280,000-280,000-65,558
2020795,833-795,833-273,267
1 Employer contributions to the pension plan and social insurance comprise AHV/IV/EO and ALV including pension plans.
2 Including members of the Executive Board who left during the current year.
3 Including interim members of the Executive Board.
Furthermore, former members of the Executive Board of Raiffeisen Switzerland received remuneration from continued salary payments during the notice periods (excluding employer pension plan and social insurance contributions) totalling CHF 280,000 in the year under review. Employer pension plan and social insurance contributions amounted to CHF 65,558. Continued salary payments to former members of the Executive Board were accounted for in the 2020 income statement and deferred.

Further compensation in 2021

Raiffeisen Switzerland understands further compensation to mean joining payments as well as payments related to the waiver of entitlements or to compensate for disadvantages that arise. Such payments are only agreed to by Raiffeisen Switzerland within narrow limits and in justified exceptional cases. In this respect, joining payments are understood to mean compensation payments in the sense of compensation for disadvantages suffered. At Raiffeisen Switzerland, joining payments as well as payments related to the waiver of entitlements or to compensate for disadvantages that arise must be approved in compliance with a clear and transparent decision-making process. Raiffeisen Switzerland does not provide any severance payments, as Raiffeisen Switzerland considers severance payments to be payments not owed upon termination of an employment relationship.
Neither severance nor joining payments were paid in the year under review.

Total remuneration for Raiffeisen Switzerland

In the year under review, Raiffeisen Switzerland paid out remuneration (excluding employer pension plan and social insurance contributions) totalling CHF 337,193,774. Accrued remuneration expenses (both fixed and variable) for the year under review have been recorded in full as personnel expenses. There are no remuneration expenses from earlier reporting years affecting profit and loss. The Board of Directors approved and deferred a total variable remuneration pool (excluding employer pension plan and social insurance contributions) of CHF 12,519,681 for Raiffeisen Switzerland in the year under review. Of this, CHF 870,062 relate to the Executive Board and the Head of Internal Auditing.
The definitive calculation of the variable remuneration was made as at 31 December 2021 and was submitted to the Board of Directors of Raiffeisen Switzerland for a decision in February 2022. The payment date for the variable remuneration is April.
The fixed component was paid in cash. The variable remuneration component for the 2021 financial year will also be paid in cash in April 2022. No shares of fixed or variable remuneration were deferred.
The total variable remuneration pool benefited the same group of people as in the years before. The final number of beneficiaries will not be available until the end of April 2022. In the previous year, Raiffeisen Switzerland paid variable remuneration to 2,258 people.
Remuneration | Raiffeisen Switzerland
Remuneration
in CHFTotal remunerationfixed variable
Total remuneration Raiffeisen Switzerland1337,193,774324,674,09312,519,681
1 Excluding employer pension plan and social insurance contributions.

Remuneration and remuneration recommendations
for the Raiffeisen banks

The Board of Directors of Raiffeisen Switzerland recommends that the Raiffeisen banks align their respective local remuneration systems to the recommendations made by Raiffeisen Switzerland.
Raiffeisen Switzerland advises the Raiffeisen banks and supports them in structuring and implementing their local remuneration systems while retaining their autonomy. The most important features of these recommendations are as follows:
  • Remuneration for employees of Raiffeisen banks may involve a fixed and a variable element. Members of the Board of Directors are ineligible to receive variable remuneration.
  • Fixed remuneration is paid based on a clearly defined function and the employee’s skills and knowledge, as in the Raiffeisen Switzerland model.
  • According to the risk profile of Raiffeisen banks and their balanced business model, all remuneration (both fixed and variable) is provided in the form of non-deferred cash payments.
  • Variable remuneration in excess of CHF 3,000 accrues pension credits in the Raiffeisen Pension Fund.
  • The Board of Directors decides on the total sum of the variable remuneration, as well as on the individual allocation of the variable remuneration to the members and Chairman of the Executive Board.
  • The recommended allocation mechanism does not give employees an incentive to take excessively high risks, as doing so cannot significantly increase remuneration.
Raiffeisen Switzerland monitors this process by regularly reviewing the structure and implementation of the local remuneration systems and working with the Raiffeisen banks to address any deviations in a clearly defined process.