Shareholders' Letter

Remuneration report
See report
Page 218
See report
Page 168
Remuneration paid to the Board of Directors and the
Group Executive Board is tied to the generation of sustainable
returns for shareholders and therefore creates incentives
aimed at achieving long-term corporate success.
Introduction
This remuneration report provides a summary of the remuneration system and compensation
paid to members of the Board of Directors and Group Executive Board (Management Board in
accordance with Section 4 of the Articles of Association) of Switzerland Ltd. This report will be subject
to a consultative vote by the Annual General Meeting on 20 April 2011.
The report is based on Article 5 of the Corporate Governance Directive issued by the SIX Swiss
Exchange. Swisscom also complies with the applicable standards of the Swiss Code of Best Practice
for Corporate Governance including Annex 1 on the remuneration recommendations for members
of the Board of Directors and the Group Executive Board. Information and comments on remuneration
and shareholdings in accordance with Article 663b bis and Article 663c para. 3 of the Swiss
Code of Obligations can also be found in the financial statements of Swisscom Ltd.
General principles governing remuneration
The uniform remuneration principles applied within the Swisscom Group are systematic, transparent
and geared to the long term. Salaries at Swisscom are based on four factors: position, individual
performance, company performance and the labour market. This approach takes into consideration
the interests of employees, investors and the company.
Swisscom offers competitive salaries in order to attract and retain highly skilled and motivated
specialist staff and managers. The variable performance-related component is an additional management
instrument aimed at achieving overriding goals. It serves to motivate employees and
management to make a contribution to the company’s long-term success. The “Management
Incentive Plan”, which is compulsory for all members of the Board of Directors and all members of
the Group Executive Board (with one exception), also ensures direct financial participation in the
medium-term performance of Swisscom’s shares. The plan is described in Note 11 to the consolidated
financial statements.
Corporate Governance and Remuneration Report 126 | 127
Corporate Governance
Remuneration Report