Remuneration Report
The Migros Community has a clearly defined policy on remuneration which is set by reference to pre-determined salary bands. These are regularly reviewed and adjusted and must be approved by the Gottlieb and Adele Duttweiler Foundation.
The remuneration model of the Migros Community is simply and clearly structured. Salaries are based directly on rates of pay in the market, and the basic idea of social capital is taken into account when they are determined. Working at Migros follows clear guidelines. Workplace quality is a conscious component of responsible management at Migros. The key values of the work conditions can be found at www.arbeiten-bei-migros.ch. The minimum wages, leave regulations or training entitlements of employees are listed there.
The bonus-free salary system is one of the core values of Migros and is integral to the company’s long-term development. In accordance with these principles, the members of the Board of Directors and the Executive Board do not receive any other payments or bonuses in respect of their duties with the Migros Community. They are not entitled to any contractually regulated severance pay.
Fees paid to members of the Board of Directors
The members of the FMC Board of Directors received a total of CHF 974’500 in 2011 (2010: CHF 963’500), including all committee attendance fees and conferences. The Chief Executive Officer, the managers of the affiliated cooperatives and the staff representatives did not receive any remuneration in their position as members of the FMC Board of Directors. The detailed disclosure of the remuneration of the members of the Board of Directors breaks down as follows:
| Flat rate compensation | Attendance4 compensation | Overall5 compensation | |
| in CHF | 2011 2010 | 2011 2010 | 2011 2010 |
| Claude Hauser, Chairman1 Human Resources and Remuneration Committee (Chairman) | 365‘000 365'000 | – – | 365‘000 365'000 |
| Doris Aebi, Vice-Chairwoman2 Human Resources and Remuneration (member) | 70‘000 70‘000 | 3‘000 3‘000 | 73‘000 73‘000 |
| Roger Baillod Audit Committee (member) | 55‘000 55‘000 | 12‘500 7‘500 | 67‘500 62'500 |
| Andrea Broggini Audit Committee (Chairman) | 55‘000 55‘000 | 16‘500 14‘000 | 71‘500 69‘000 |
| Jean-René Germanier Human Resources and Remuneration (member) | 55‘000 55‘000 | 3‘000 3‘000 | 58‘000 58‘000 |
| Paola Ghillani Audit Committee (member) | 55‘000 55‘000 | 12‘500 10‘000 | 67‘500 65‘000 |
| Salomé Paravicini Audit Committee (member) | 55‘000 55‘000 | 12‘500 6‘000 | 67‘500 61‘000 |
| Thomas Rudolph Finance Committee (member) | 55‘000 55‘000 | 4‘000 10‘000 | 59‘000 65‘000 |
| Ursula Schoepfer Finance Committee (member) | 55‘000 55‘000 | 5‘500 6‘000 | 60‘500 61‘000 |
| Heinz Winzeler Finance Committee (Chairman) | 55‘000 55‘000 | 8'000 10‘000 | 63‘000 65‘000 |
| Patrick Avanthay (Employee representative)3 | – – | 11'000 10‘000 | 11‘000 10‘000 |
| Daniela Suter (Employee representative)3 | – – | 11'000 9‘000 | 11‘000 9‘000 |
| Total 2011 Total 2010 | 875'000 875'000 | 99'500 88‘500 | 974‘500 963‘500 |
1 The Chairman of the Board of Directors is not paid an attendance fee. Excl. of allowances
of CHF 20'000. No pension fund contributions are made.
2 The Vice-Chairman is remunerated with an additional flat fee of CHF 15'000.
3 Employee representatives are paid CHF 1'000 per meeting/day.
4 Committee meetings are remunerated as follows:
Full-day meeting: CHF 2’500
Half-day meeting: CHF 1’500
Meeting before/after meeting of the Board of Directors: CHF 500
Committee chairman allowance: CHF 1’000
5 Plus accommodation and board at the in-house seminar centre during the
meetings of the Board of Directors. No pension fund contributions are made.
The President of the G. and A. Duttweiler Foundation is paid a flat fee of CHF 55'000 for attending the meetings of the Board of Directors as a guest.
Salaries of the Executive Board
The seven members of the FMC Executive Board (including the CEO) were paid a total of CHF 5.10 million in 2011 (2010: CHF 4.95 million). The highest single wage (Herbert Bolliger, Chief Executive Officer) was 860’000 (2010: CHF 840’000). Two thirds of pensions contributions are borne by the employer and one third by the employee. Members of the Board of Directors are provided with a car; no other benefits are paid. No variable remunerations are paid.
Auditing and other fees
For services across the group related to the auditing of the annual financial statements, and for other services in the areas of company evaluations, tax consultancy, accounting and due diligence audits, PwC and Mitreva invoiced the following:
| in 1'000 CHF | Auditing services | Other services | Total | |||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |
| PWC | ||||||
| Federation of Migros Cooperatives, Magazine zum Globus, Migros Beteiligungen AG, Liegenschaften Betriebe AG, LeShop, Hotelplan Group, Migros Bank, Migros Pension Fund, Anlagestiftung, and Group account Migros Community | 2'249 | 2'509 | 395 | 1'008 | 2'644 | 3'517 |
| Mitreva | ||||||
| Other group companies | 4'193 | 4'037 | 324 | 782 | 4'517 | 4'819 |