Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

Remuneration Report Risk Management Financial Report Global Markets R & D Global Presence
Compensation of members of the Executive Committee
in CHF 1 000
Total compensation to
members of the Executive
Committee
Thereof highest paid to
one individual: 4
Thomas Babacan
(former COO)
In 2011, members of the Executive Committee participated in a performance-share
program. Following the vesting period of three years, a number of Performance Share
Awards (PSA) is converted into Oerlikon shares. Performance is measured by the
cumulative economic profit (Oerlikon Value Added) of the Oerlikon Group over a threeyear
period. In 2011, no grants were made under the Restricted Stock Units (RSU)
program. (See equity plans below.) The variable portion of the total target compensation
(Short- and Long-Term Incentive) of members of the Executive Committee is on
average 56 %.
The total compensation paid to members of the Executive Committee for the year
2011 was CHF 9.9 million. The highest compensation paid to an individual Committee
member was CHF 4.1 million.
Base
Salary Bonus1 LTI
(2008 – 11) 2
LTI
(2009 – 11) 2
LTI
(2010 – 13) 2
LTI
(2011 – 14) 2 Other
compen-
Pension sation 3
Total Total
compen- compen-
Severance sation sation
payment 2011 2010
2 870 2 637 – 116 545 434 875 287 2 138 9 902 9 944
562 1 116 – 41 – – 155 117 2 138 4 128 4 354
1 Effective bonus 2010 paid in 2011 and one bonus 2011 paid in 2011.The expected bonus outcome for the year 2011 amounts to CHF 3 million. Bonus payments will be made in
March/April 2012, after the financial results are published.
2 Accounting value of Performance Share Awards (PSA) is based on a weighted average share price of CHF 12.3 (grant date in 2008), CHF 4.6 (grant date in 2010) and CHF 6.8 (grant
date in 2011). Accounting value of Restricted Stock Units (RSU) is based on a weighted average share price of CHF 4.2 (grant date in 2009).
3 Other compensation includes expense, housing and car allowances.
4 Thomas Babacan’s employment ended on December 31, 2011. The severance payment included the contractually agreed base salary for 12 months and a contractually agreed
termination payment. The highest compensation paid in 2010 went to the former General Counsel & Corporate Secretary.
Compensation of former members of governing bodies
During 2011, no compensation was paid to former members of the Board of Directors,
either by OC Oerlikon Corporation AG, Pfäffikon or by any other company of the
Oerlikon Group. A former member of the Executive Committee received a fee of
CHF 21 000 for a board membership. No compensation was paid to former members
of the Board of Directors and the Executive Committee in 2010.
Executive Leadership Team
The Executive Leadership Team is comprised of the Segment CEOs and the heads of
specific Corporate Functions. Their compensation system is composed of a base
salary and a performance-related annual cash bonus and a Long-Term Incentive (LTI)
program. The base salary is determined by the executive’s tasks, responsibilities,
skills, managerial experience and market conditions. Base salaries were increased by
a similar proportion as those of other managers and staff depending on market conditions
and individual performance evaluations.
The Executive Leadership Team participates in the Corporate Short-Term Incentive
(STI) program, which applies to all senior managers as well as the Executive Committee
of the Oerlikon Group. This program consists of financial targets (Return on Net
Assets, Operating Free Cash Flow) which are weighed 70 % and individual targets
which are weighed 30 %. Each financial target has a lower threshold below which no
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