Compensation in 2018

For the 2018 business year, the members of the Board of Directors received a fixed compensation of CHF thousands 888. Contributions to benefit plans and other social contributions amounted to CHF thousands 114. The fixed compensation was paid in cash (CHF thousands 731) as well as in the form of an entitlement to acquire LLB shares (CHF thousands 157). 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 59 or 5.6 per cent. The higher compensation cost 2017 was attributable mainly to the fact that from the General Meeting 2018 the Board of Directors was composed of one member fewer (six members instead of the former seven).

For the 2018 business year, the members of the Group Executive Board received a fixed compensation of CHF thousands 3'236 and a variable compensation of CHF thousands 2'666. Contributions to benefit plans and other social contributions amounted to CHF thousands 1'091. 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 2018 (CHF 64.55). The variable compensation for the members of the Group Executive Board was, on average, approximately 82.4 per cent of the fixed compensation or 38.1 per cent of total compensation.

The total compensation of the members of the Group Executive Board in 2018 increased by CHF thousands 1'208 or 20.9 per cent. This increase was primarily the result of the higher variable compensation. The MAPI was plus 31.9 per cent (previous year: plus 4.1 %). This results from the total shareholder return of LLB (34.3 %) in comparison with the total shareholder return of the peer group (2.4 %) which corresponds to an attainment of objectives of 179.7 per cent (previous year: 110.4 %).

The total compensation of the members of the Board of Directors and the members of the Group Executive Board for the 2018 business year is reported on an accrual basis. The variable compensation was charged to the 2018 income statement. Payment of the STI to the members of the Group Executive Board will be made in the first quarter of 2019. 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 Executive Management Board possesses more than 0.1 per cent of the voting rights.

At 31 December 2018, the maturities of the fixed mortgages for the members of the Board of Directors and related parties ranged between 3 and 51 months (previous year: between 1 and 95 months) at standard market client interest rates of 0.95 to 1.65 per cent per annum (previous year: 1.10 to 1.65 %). Mortgages at standard market conditions with variable interest rates were not issued (previous year: maturity between 2 and 23 months).

At 31 December 2018, the maturities of the fixed mortgages for the members of the Board of Management ranged between 1 and 78 months (previous year: between 10 and 90 months) at interest rates of 0.4 to 1.88 per cent per annum (previous year: 0.4 to 1.88 %).

In 2018, an expiring loan was extended at the same conditions. The fair value of the collateral for the newly granted loan amounted to CHF thousands 1'352.

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 loans to the Board of Management amounted to CHF thousands 200 (previous year: CHF thousands 246).

No allowances for loans to management were necessary. LLB granted third parties guarantees amounting to CHF thousands 168 (previous year: CHF thousands 168) for management and related parties.