II. Summary of advancements undertaken as of 2023

The CNC values the feedback received from shareholders on our Compensation Report and continuously reviews potential adaptations regarding the compensation framework, system and processes. In this regard, several advancements were discussed and decided for 2023. A summary is provided below and in more detail in the relevant chapters of this report.

Cash Bonus
  • Performance considerations
    We streamlined and formalized the scorecard to measure the Group Management’s performance relevant for the Cash Bonus, giving substantial weight to quantitative KPIs.
  • Payout opportunity
    The minimum and maximum payout percentages of the Cash Bonus based on Base Salary are generally limited to the range of 0–100% (target 80%) and up to 130% in extraordinary cases for the CEO and to 0–90% (target 60–70%) and up to 130% in extraordinary cases for the other Group Management members.
  • Transparency on performance achievements
    The advanced scorecard structure further facilitates transparent ex-post disclosure of performance achievements.
Option Plan
  • Performance considerations – at grant
    We elaborated on the criteria used to assess the Group Management members’ performance (emphasizing several aspects of operational performance considerations) relevant to determine individual grant amounts under the Option Plan. The performance aspects taken into consideration by the CNC to determine the grant size under the Option Plan include several operational performance aspects, therefore reflecting operational performance at grant.
  • Grant opportunity
    The minimum and maximum grant percentages of the Option Plan based on Base Salary are generally limited to the range of 0–100% (and up to a maximum of 180%) for the CEO and other Group Management members.
  • Performance-considerations – at vesting
    Following careful consideration, the CNC has decided that options to receive participation certificates after a total vesting period of between three and five years is still an optimal instrument to reward Group Management members for their contribution towards long-term value creation for Lindt & Sprüngli and hence align their interests with those of shareholders. The vesting of options under the Option Plan is subject to a performance underpin of positive absolute share price performance, therefore reflecting a market performance consideration at vesting.