General Information

Compensation to the Executive Board

Compensation payable to the Executive Board members, including the CEO, is proposed by the Board upon recommendation by the Compensation Committee and subject to shareholder approval at the AGM.

  Unrestricted cash Value of STI awards Value of LTI awards 1 Total
and fixed
equivalents 2
and similar
and other benefits 3
compensation 4

2014 (CHF million, except where indicated)

11 members 7.94 13.98 5 17.18 39.10 19.45 2.98 2.53 24.96 64.06

% of total compensation

12% 22% 27%   30%        
of which CEO: Brady W. Dougan 1.52 2.28 3.05 6.85 2.50 0.32 0.03 2.85 9.70

% of total compensation

16% 24% 31%   26%        

1 The LTI awards are net of CHF 4.7 million as part of the voluntary downward adjustment to the Executive Board compensation awards for 2014 resulting from the final settlement of all US cross-border matters. These awards vest over a five-year period, payable on the third, fourth and fifth anniversaries of the grant date. The final value at settlement depends on the achievement of pre-defined performance criteria linked to the average relative total shareholder return and average strategic return on equity.
2 Share awards granted prior to January 1, 2014 carry the right to an annual payment equal to the dividend payable on each Group share. The dividend equivalents were paid in respect of awards granted in prior years and were delivered in cash, consistent with dividends paid on actual shares.
3 Other benefits consist of housing allowances, expense allowances, child allowances and a carried interest award in certain alternative investment funds with a fair value at the time of grant of CHF 1.8 million awarded to Robert S. Shafir. The initial value of this award is determined by making assumptions about the return that will be realized on the funds over their lifetime of up to fifteen years. For the total compensation awarded to members of the Executive Board, the Group made payments of CHF 4.3 million in 2014 and CHF 4.7 million in 2013 to cover the mandatory employer social security contributions as required under the social security laws applicable to the individual Executive Board members based on their domicile and employment status. These contributions do not form part of the Executive Board members’ compensation.
4 Does not include CHF 8.6 million of charitable contributions made by the Group for the allocation of which the CEO and three other Executive Board members were able to make recommendations.
5 STI awards for 2014 comprise CHF 13.15 million performance shares as well as CHF 0.83 million granted as blocked shares and performance shares to the Executive Board members who were categorized as PRA Code Staff, including the Executive Board member who is no longer on the Executive Board. The applicable Group share price for all share awards was CHF 20.21.

For a full description of the compensation for Members of the Executive Board for 2014, refer to the Annual Report 2014 - Compensation.