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29 Related parties

The Group has related party relationships with its shareholders, its subsidiaries and joint ventures, its key executive officers and Directors (including the members of the Group Executive Board of SIG and the Board of Directors).

Shareholders

The Company’s shares are listed on SIX Swiss Exchange.

Onex and a number of co-investors related to it gradually reduced their shareholding in the Company in 2020. Onex ceased to be a related party to the Company in August 2020, when its shareholding was reduced to below 20% (to 10.1% of the issued shares). Onex sold its remaining shares in the Company in December 2020. See also the below section “Related party transactions and balances”. According to the disclosure notifications reported to the Company during 2020 and published by the Company via the electronic publishing platform of SIX Swiss Exchange, Onex did not report any shareholding of 3% or more of the voting rights of the Company as of 31 December 2020 (32.9% as of 31 December 2019).

Certain members of SIG management participated in a management equity plan that was established in 2015. They held shares in the Company, acquired at fair value, via its participation in two limited liability partnerships. The limited liability partnerships held 1.1% of the shares as of 31 December 2019. In accordance with the plan regulations, management exercised their right to withdraw from the management equity plan in the first half of 2020. As such, they no longer indirectly hold shares in the Company through such limited liability partnerships.

The members of the Group Executive Board directly held 0.3% of the Company’s shares as of 31 December 2020 (indirectly 0.6% as of 31 December 2019). The members of the Board of Directors directly held 0.07% of the Company’s shares as of 31 December 2020 (directly 0.04% and indirectly 0.06% as of 31 December 2019).

Key management

The Company’s key management include the members of the Group Executive Board of SIG and the Board of Directors.

The below table includes information about compensation to the Group Executive Board.

(In € million)

 

Year ended
31 Dec. 2020

 

Year ended
31 Dec. 2019

Short-term employee benefits

 

6.0

 

6.8

Post-employment benefits

 

0.5

 

0.5

Share-based payments

 

2.1

 

1.1

Termination benefits

 

5.5

 

Total compensation to the Group Executive Board

 

14.1

 

8.4

An expense of €5.5 million have been recognised in the year ended 31 December 2020 for termination benefits (including non-compete agreements) concerning three former members of the Group Executive Board. The Chief Market Officer (Markus Boehm) left the Company in August 2020 when the Group announced organisational changes in the Group Executive Board, including the elimination of his position and a reallocation of his responsibilities within the Group. The President and General Manager of Europe (Martin Herrenbrück) announced in August 2020 that he would leave the Company as of 31 December 2020. The Chief Executive Officer (Rolf Stangl) announced in November 2020 that he would also leave the Company as of 31 December 2020. Their terminations have been reflected in the measurement of the amount recognised as a share-based payment expense, considering the good and bad leaver clauses in the share-based payment plans in which the three former members of the Group Executive Board participated.

See note 31 for information about the participation of the members of the Group Executive Board in share-based payment plans.

Compensation to the members of the Board of Directors totalled €1.6 million for the year ended 31 December 2020 (€1.6 million for the year ended 31 December 2019). The members of the Board of Directors receive part of their compensation in blocked shares (blocked shares and restricted share units in the year ended 31 December 2019). See note 31 for additional information.

Further details about compensation paid to the members of the Group Executive Board and the Board of Directors can be found in the Compensation Report included elsewhere in the 2020 Annual Report. Information about SIG shareholdings of these persons are included in the section Shareholders above and in the Compensation Report.

Other related parties

The Group’s subsidiaries are listed in note 26. Information about the joint ventures is included in note 28.

Related party transactions and balances

Onex used to provide consultancy services to the Company on various matters without any compensation other than for out-of-pocket expenses. Since December 2020, Onex no longer provides consultancy services to the Company. The information sharing agreement between SIG and Onex was terminated on 6 August 2020, when Onex ceased to be a related party to the Company.

Information about other related parties is provided in the following table. Transactions with Onex portfolio companies are reported up until 6 August 2020.

There were no other significant related party transactions during the years ended 31 December 2020 and 31 December 2019. As of 31 December 2020, the Group had no commitments to incur capital expenditure with related parties (€9.3 million for the year ended 31 December 2019, concerning Erwepa).

The Group announced on 25 November 2020 that it has entered into an agreement to acquire the remaining 50% of the shares in its two joint ventures in the Middle East. The acquisition is expected to complete before the end of the first quarter of 2021. See further note 4.