Compensation in 2022

For the 2022 business year, the members of the Board of Directors received a fixed compensation of CHF thousands 948. Contributions to benefit plans and other social contributions amounted to CHF thousands 113. The fixed compensation was paid in cash (CHF thousands 778) as well as in the form of an entitlement to acquire LLB shares (CHF thousands 170). The entitlement 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 50 or 4.9 per cent. The higher compensation expense in 2022 was attributable mainly to the fact that up until the re-election of Georg Wohlwend at the General Meeting of 7 May 2021 the Board of Directors consisted of only six members.

For the 2022 business year, the members of the Group Executive Board received a fixed compensation of CHF thousands 3’199 and a variable compensation of CHF thousands 1’912. Contributions to benefit plans and other social contributions amounted to CHF thousands 1’037. 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 2022 (CHF 54.99). The variable compensation for the members of the Group Executive Board was, on average, approximately 59.8 per cent of the fixed compensation or 31.1 per cent of total compensation.

The total compensation of the members of the Group Executive Board in 2022 rose by CHF thousands 601 or 10.8 per cent. This rise was mainly due to the variable compensation, which increased by CHF thousands 648 or 51.3 per cent. The performance of the LLB share was better in the 2022 business year than the performance of the comparable group. The total shareholder return (TSR) of LLB was 9.4 per cent and thus above the TSR of the peer group (1.8 %). The relative MAPI was therefore plus 7.6 percentage points (previous year: minus 9.1 percentage points). Consequently, the degree of objective attainment for the variable target compensation is 119.0 per cent (previous year: 77.3 %).

The total compensation of the members of the Board of Directors and the members of the Group Executive Board for the 2022 business year is reported on an accrual basis. The variable compensation was charged to the 2022 income statement. Payment of the STI to the members of the Group Executive Board will be made in the first quarter of 2023. The share entitlements (LTI) of the Group Executive Board and the Board of Directors are 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 members of the Group Executive Board, as well as loans to them are shown in the following table.

Compensation of key management personnel

Shareholdings of related parties

No member of the Board of Directors or the Board of Management owns more than 0.2 per cent of the voting rights.

Loans to key management personnel

All mortgage loans to members of management in key positions and related parties are fully secured.

At 31 December 2022, the remaining term to maturity of the fixed mortgages for the members of the Board of Directors and related parties ranged between 3 and 49 months (previous year: between 15 and 51 months) at standard market client interest rates of 0.75 to 1.25 per cent per annum (previous year: 0.75 to 1.25 %). Following its expiry, one mortgage was renewed at the new market conditions.

At 31 December 2022, the remaining term to maturity of the variable mortgages for the members of the Board of Directors and related parties extended to a maximum of 3 months (previous year: 1 month) at standard market client interest rates of 1.28 per cent (previous year: 0.80 to 0.95 %). Following expiry, these are extended for a further 3 months providing they are not revoked.

At 31 December 2022, the remaining term to maturity of the fixed mortgages for the members of the Board of Management ranged between 18 and 112 months (previous year: between 0 and 42 months) at interest rates of 0.81 to 1.80 per cent per annum (previous year: 1.05 to 1.80 %). Two new mortgages were issued.

Of the total amount for mortgages for the members of the Board of Management, CHF thousands 1’000 (previous year: CHF thousands 500) was granted at the preferential interest rate for staff, the remainder was subject to standard market client interest rates. No other loans were issued to the members of the Board of Management (previous year: none).

No value allowances for loans and other credit lines to management were necessary. LLB granted no guarantees for management or related parties (previous year: CHF thousands 500).