Shareholders' Letter

Base emoluments and
functional allowances
Meeting
Cash compensation Share-based attendance
2009, in CHF thousand payment fees Total 2009
Anton Scherrer 334 186 71 591
Fides P. Baldesberger 1 30 13 5 48
Hugo Gerber 2 98 54 18 170
Michel Gobet 98 54 16 168
Torsten G. Kreindl 114 63 20 197
Hansueli Loosli 3,4 64 44 8 116
Catherine Mühlemann 98 54 17 169
Felix Rosenberg 145 81 22 248
Richard Roy 114 63 21 198
Othmar Vock 112 63 25 200
Total compensation to members of the Board of Directors 1,207 675 223 2,105
1 Resigned as of 21 April 2009.
2 In addition, a cash compensation of CHF 9,000 was paid as member of the Board of Directors of Worklink AG, in charge from 1 April 2009.
3 Elected as of 21 April 2009.
4 Cash compensation is paid to Coop.
The compensation plan provides for basic emoluments for the Chairman of the Board of Directors
of CHF 385,000 net, and of CHF 110,000, net, for the other Board members. Additional fees are
also paid for specific duties (functional allowances). Each member of a Board Committee is entitled
to compensation of CHF 10,000 net. Accordingly, each member of the Board Committees Finances,
Human Resources and Organisation as well as Audit is entitled to an emolument of CHF 10,000
net. In addition, the Vice-Chairman and the Chairmen of the Board committees are entitled to
compensation of CHF 20,000 net and the representative of the Swiss Confederation receives an
additional CHF 40,000 net for special duties related to his function. Meeting attendance fees are
also paid (half a day: CHF 500 net / whole day: CHF 750 net). Out-of-pocket expenses are reimbursed
on the basis of actual costs incurred. No significant non-cash benefits are paid.
The members of the Board of Directors are obligated to draw 25% of their basic emoluments
including functional allowances in the form of equity shares, whereby Swisscom augments the
amount to be invested in shares by 50%. In this manner, the compensation (excluding meeting
attendance fees) is made up of a two-thirds cash portion and one-third equity share portion. The
shares are allocated on the basis of their value accepted for tax purposes – rounded up to the next
whole number of shares – and are subject to a three-year retention period. The shares which are
allocated in April of each reporting year are recorded at their market value as of the acquisition
date if purchased (usually three weeks before allocation) or at the market value on the date of allocation
if treasury shares are allocated. In April 2010, a total of 1,712 shares were allocated to the
members of the Board of Directors (prior year: 2,119 shares) for a tax value of CHF 328 per share
(prior year: CHF 265). Their market value was CHF 392 per share (prior year: CHF 316).
As regards the disclosure of non-cash benefits and expenses, these are dealt from a tax point of
view, such that neither non-cash benefits nor expenses are included in reported compensation.
No compensation was paid to former members of the Board of Directors in connection with their
earlier activities as a member of a governing body of the Company and which is not at arm’s length.
The compensation disclosed does not include the employer’s share of social security contributions
in particular for old age, accident and unemployment insurance. The social security contributions
for the Board of Directors in 2010 totalled CHF 0.2 million (prior year: CHF 0.2 million).
218 | 219
Financial statements of Swisscom Ltd
Notes to financial statements