Group Management Board Compensation

The general compensation principles and elements for the Group Management Board are described in the preceding sections of the Compensation Report.

Achievement of 2015 Company Targets and Short-Term Incentive Payout

In 2015 Sunrise did not fully reach its quantitative financial goals due to tense overall market conditions. Establishing the new business set-up of decoupling the hardware business from Sunrise services was challenging and had a negative impact on the 2015 results. Qualitative targets, however, were reached, and the Group Management Board proactively launched several initiatives to speed up operations and increase efficiency, customer satisfaction and network quality to support the bottom-line growth of the Sunrise customer base and reduce the churn rate (see Annual Short-Term Incentive for details). This resulted in an overall target achievement well below a 100% target achievement.

Therefore, the overall target achievement was 60% for the CEO, 70% for the other Group Management Board members and, on average, 75% for employees.

The total short-term incentive totaled CHF 1.301 million for the Group Management Board (of which CHF 0.306 million was for the CEO).

Per the rules of the MLTIP, Group Management Board members were able to elect receipt of a portion of their short-term incentive in the form of Investment Shares. This plan provides Group Management Board members with the opportunity to draw part of their incentive in three-year blocked shares (with full downside risk) instead of a cash payment. By giving them "skin in the game", this share ownership program aligns the future long-term interests of key stakeholders and management. In turn, Group Management Board members are granted the right to receive Performance Shares that vest under certain service conditions and challenging performance conditions (see Management Long-Term Investment Program for details).

In 2015, corresponding Performance Shares were granted under the MLTIP at a target value of CHF 0.570 million for the Group Management Board (thereof CHF 0.183 million for the CEO).

Taking into account other benefits / cash allowances, employer social security contributions and retirements benefits, total compensation of the Group Management Board in 2015 totaled CHF 7.331 million (thereof CHF 1.689 million for the CEO).

As described in IPO Management Long-Term Investment Program, to further foster personal long-term commitment even further, the members of the Group Management Board was additionally offered the chance to invest private means into Sunriseshares at the time of the IPO (MLTIPZero). Such investments entitled Group Management Board members to receive Performance Share grants under the same performance and service conditions as the Performance Shares under the MLTIP. In relation to these private investments, a one-time grant of Performance Shares was made to the Group Management Board at a target value of CHF 8.640 million (thereof CHF 2.849 million for the CEO).

The following table shows the total compensation paid to the Group Management Board including the highest amount that was paid to one individual (CEO). The footnotes contain explanatory information on the amounts indicated. The accrual principle was applied to all elements of compensation except to the Performance Shares that were evaluated based on the fair value at the grant date according to IFRS2 (including grossed-up employer social ­security). In addition, the table shows the fair value of ­Other Benefits/Cash Allowances as well as Retirement Benefits.

Additional information

No loans or credits are granted to the members of the Group Management Board and their maximum termination period is six months.

Total Group Management Board Compensation 2015

In CHF Total Group ­Management Board Thereof 
Libor Voncina
Base Salary Total Group ­Management Board3,728,333 Thereof 
Libor Voncina
850,000
Short-Term Incentive to be paid in March 2016 Total Group ­Management Board

1,300,583

Thereof 
Libor Voncina
306,000
MLTIP: Performance Shares Total Group ­Management Board

569,787

Thereof 
Libor Voncina
182,767
Other Benefits / Cash Allowances Total Group ­Management Board313,248 Thereof 
Libor Voncina
85,140
Social Security Total Group ­Management Board456,498 Thereof 
Libor Voncina
105,457
Retirement Benefits Total Group ­Management Board962,304 Thereof 
Libor Voncina
159,765
  Total Group ­Management Board  Thereof 
Libor Voncina
 
Compensation 2015 Total Group ­Management Board7,330,753 Thereof 
Libor Voncina
1,689,129
In CHF  Total Group ­Management Board  Thereof 
Libor Voncina
 
One-time IPO MLTIPZero Performance Shares (vesting in 2018) (1) Total Group ­Management Board8,639,922 Thereof 
Libor Voncina
2,848,520
Social Security on IPO MLTIPZero Total Group ­Management Board612,830 Thereof 
Libor Voncina
202,046
In CHF  Total Group ­Management Board  Thereof 
Libor Voncina
 
Total Total Group ­Management Board16,583,505 Thereof 
Libor Voncina
4,739,695
- Ratio of performance-related variable compensation to fixed compensation excluding the IPO MLTIPZero (2) Total Group ­Management Board37.38% Thereof 
Libor Voncina
44.64%
- Ratio of performance-related variable compensation to fixed compensation including the IPO MLTIPZero (2) Total Group ­Management Board210.04% Thereof 
Libor Voncina
304.80%

(1) Preceded by a committment of the Group Management Board members to privately invest the same amount in Investment Shares at the time of the IPO. See article 3.2.3.3

  • Compensation figures are disclosed for the entire calendar year 2015 (Company registration took place on January 13, 2015)
  • All base salary, short-term incentive and performance share amounts are gross values before deduction of applicable tax, employee social security and other statutory charges
  • Sunrise cost for social security and retirement benefit contributions is stated separately
  • Of the short-term incentive to be paid in March 2016, an amount of CHF 363,000 will be invested in Investment Shares
  • For the IPO MLTIPZero and the MLTIP, figures are based on 100% target achievement (one Performance Share for one Investment Share)
  • Calculation method for evaluation of Performance Shares: Monte-Carlo
  • Grant Date Fair Value per Share in CHF for MLTIP PSU: 87.70
  • Grant Date Fair Value per Share in CHF for MLTIPZero PSU: 80.24
  • One Group Management Board member left Sunrise on May 31, 2015 (Hans Jörg Denzler)

(2) Ratio calculation does not include Social Security since it is basically distributed proportionally among variable and fixed compensation; not all Group Management Board members opted to invest in the Management Long-Term Incentive Program (MLTIP)