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3. Compensation principles

The compensation framework of SIG reflects the commitment to attract, engage and retain top talent globally and to align the interests of SIG leaders with those of shareholders. SIG’s overall compensation framework is long-term in nature and designed to reward outperformance and effectively address underperformance, with performance defined relative to targets and, in some cases, relative to peers. SIG endeavours to make its compensation principles simple and transparent for the benefit of shareholders, Board and management. The compensation principles are illustrated in Figure 6.


Compensation framework, objectives and principles (illustration)

To assess SIG’s compensation system not only from an internal equity perspective but also from an external competitiveness perspective, compensation is periodically benchmarked against that of similar roles in comparable companies. The Compensation Committee uses this analysis to review the composition, the level as well as the structure of the compensation of the Board and the Group Executive Board on a regular basis.

For the Board, Swiss listed industrial companies are considered the most relevant reference market for compensation comparison, reflecting the specific governance regime and regulatory aspects of the Swiss market1. For the Group Executive Board, a broader industry-related European comparator group is considered appropriate to assess compensation practices, structure and pay levels given SIG’s international footprint and reflecting the recruiting market2. In both cases, size criteria apply.

In 2021, benchmark analyses for both the Board and the Group Executive Board were conducted by HCM International Ltd., based on the existing respective comparison groups. The benchmarking underlined that SIG is positioned comparably to its peers with regards to level and structure of the compensation packages. As a consequence, no adjustments of compensation with regards to the packages, both in terms of level and structure, for neither the members of the Group Executive Board nor for the Board of Directors were considered necessary.

Figure 7 provides an overview of the compensation elements for the Board and the Group Executive Board:

Figure 7: Overview of compensation elements for the Board of Directors and the Group Executive Board





Board of Directors


Group Executive Board

Fixed compensation elements


Annual base salary





Annual base fee





Annual Committee fee





Pension contributions





Other benefits




Variable compensation elements


Short-Term Incentive Plan





Long-Term Incentive Plan




Where required by Swiss law, members of the Board of Directors may be insured in the pension fund of the Company. If so, contributions will be fully funded by the respective member of the Board. Additional details for each compensation element are included later in this report.

1 The comparison group used for the compensation benchmarking analysis of the Board conducted in 2021,consisted of the following Swiss listed industrial companies: ARYTZA, Barry Callebaut, BKW, Bucher, Clariant, DKSH, dormakaba, Dufry, Flughafen Zuerich, Geberit, Georg Fischer, OC Oerlikon, SFS Group, Straumann, Sulzer, Vifor Pharma.

2 The comparison group used for the compensation benchmarking analysis of the Group Executive Board conducted in 2021, consisted of the following comparators: Aalberts, AMS, ARYTZA, Barry Callebaut, BKW, Bucher, Clariant, DKSH, DMG MORI, dormakaba, Duerr, Dufry, Flughafen Zuerich, GEA; Georg Fischer, IMI, Kingspan, OC Oerlikon, SFS Group, Spirax-Sarco, Straumann, Sulzer, Vifor Pharma, Weir.