We place emphasis on fair compensation that explicitly rewards skills and performance. We also endeavour to pay competitive compensation so that we retain and recruit qualified employees for our Group. Our compensation structure is aligned with customary market values in the banking sector. Women and men in the same position and at the same performance level are in the same pay scale and wage model. Salaries within the LLB Group amounted to a total of CHF 128.1 million in 2014 (2013: CHF 137.2 million).
The LLB Group’s modern variable compensation system, which was introduced in 2013, is exemplary for the banking sector. Since 2014 the amount of the variable compensation has been based on our employees’ performance and is calculated according to the pay scale of the individual wage models. Compensation therefore consists of the fixed salary and the variable target compensation with bonus provisions.
Clearly defined target compensation ensures that employees know the amount of both their fixed and variable compensation, both in those cases where they achieve 100 percent of the annual targets agreed upon and also in cases of increased performance or failure to achieve the annual targets. The LLB Group’s transparent variable compensation system is attractive to employees who are high achievers. Concomitantly, the bonus / malus provisions add to an increase in quality through more self-management and more self-responsibility.
Besides individual performance, group performance is also crucial for determining a manager’s variable compensation. Management key performance figures are assessed in relation to those of a peer group of comparable banks using the “Market Adjusted Performance Indicator” (MAPI). Once a year, the target compensation is reviewed. Our employment contracts are individually negotiated in meetings between employees and their supervisors and are not based on collective pay negotiations.