Compensation in 2017

For the 2017 business year, the members of the Board of Directors received a fixed compensation of CHF thousands 942. Contributions to benefit plans and other social contributions amounted to CHF thousands 119. The fixed compensation was paid in cash (CHF thousands 772) as well as in the form of an entitlement to acquire LLB shares (CHF thousands 170). The entitlement to acquire LLB shares is subject to a blocked period of three years.

In comparison with the previous year, the total compensation of the members of the Board of Directors increased by CHF thousands 20 or 1.9 percent. This was due to additional compensation expense incurred during the handover of the chairmanship of the Board of Directors in May, as a result of which contributions to benefit plans and other social contributions also rose accordingly.

For the 2017 business year, the members of the Group Executive Board received a fixed compensation of CHF thousands 3’055 and a variable compensation of CHF thousands 1’684. Contributions to benefit plans and other social contributions amounted to CHF thousands 1’046. The fixed compensation was paid in cash. The variable compensation was paid in cash (50 %) as well as in the form of an entitlement to acquire LLB shares (50 %), which is subject to a blocked period of three years. The number of shares for the share-based compensation is calculated from the average share price of the last quarter of 2017 (CHF 49.50). The variable compensation for the members of the Group Executive Board was, on average, approximately 55.1 percent of the fixed compensation or 29.1 percent of total compensation.

The total compensation of the members of the Group Executive Board in 2017 decreased by CHF thousands 617 or 9.7 percent. This decrease was primarily the result of the lower variable compensation. The MAPI was plus 4.1 percent (previous year: plus 22.5%), which corresponds to an attainment of targets of 110.4 percent (previous year: 156.2%).

The total compensation of the members of the Board of Directors and the members of the Group Executive Board for the 2017 business year is reported on an accrual basis. The variable compensation was charged to the 2017 income statement. Payment of the STI to the members of the Group Executive Board will be made in the first quarter of 2018. The entitlement to acquire LLB shares by the Group Executive Board (LTI) and the Board of Directors is subject to a blocked period of three years.

Details of the compensation and the participations of the members of the Board of Directors and the Group Executive Board, as well as loans to them are shown in the following table.

No member of the Board of Directors or the Board of Management owns more than 0.1 percent of the voting rights.

As at 31 December 2017, the maturities of the fixed mortgages for the members of the Board of Directors and related parties ranged between 1 and 95 months (previous year: between 13 and 107 months) at standard market client interest rates of 1.10 to 1.65 percent p.a. (previous year: 1.10 to 1.65%). The maturities of mortgages with a variable interest rate granted at standard market conditions were between 2 and 23 months (previous year: between 14 and 35 months).

As at 31 December 2017, the maturities of the fixed mortgages for the members of the Board of Management ranged between 10 and 90 months (previous year: between 22 and 102 months) at interest rates of 0.4 to 1.88 percent p.a. (previous year: 0.4 to 1.88%).

No new loans were granted in 2017. The fair value of cover of new loans granted in the previous year amounted to CHF thousands 1’577.

Of the total amount for mortgages for the members of the Board of Management, CHF thousands 1’000 (previous year: CHF thousands 1’000) was granted at the preferential interest rate for staff, the remainder was subject to the standard market client interest rate. Other credits granted to the members of the Board of Management totalled CHF thousands 246 (previous year: CHF thousands 246).

No allowances for loans and other credits granted to management were necessary. LLB issued guarantees to third parties on behalf of management or related parties totalling CHF thousands 168 (previous year: CHF thousands 168).