Remuneration Report
The Migros Community has a clearly defined remuneration policy. Remunerations are set by reference to pre-determined salary bands which are regularly reviewed and adjusted, and must be approved by the G. and A. Duttweiler Foundation. Mitreva Interne Revision AG verifies that the salary bands are adhered to. The Chair of the Board of Directors is informed of the results in writing.
The remuneration model of the Migros Community is simply and clearly structured. Salaries are based generally on rates of pay in the market, and the rationale of social capital is taken into account when they are fixed. Clear guidelines are set for working at Migros. Quality of the workplace is a conscious component of responsible management at Migros. The benchmark working conditions can be found at www.arbeiten-bei-migros.ch, where details such as minimum wages, regulations for annual leave and employee training entitlements are listed.
The bonus-free salary system is one of Migros’ core values and is integral to the company’s long-term development: the members of the Board of Directors and Executive Board do not receive any bonuses or profit-sharing for 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 (including the Chair) received a total of CHF 988'500 in fees in 2012 (2011: CHF 974'500), including all attendance fees for committee meetings and conferences. No other forms of remuneration are paid, including in particular pension fund contributions or expenses.
The Chief Executive Officer and the managing directors of the affiliated Cooperatives did not receive any form of remuneration in their capacity as members of the FMC Board of Directors. The detailed disclosure of the remuneration paid to members of the Board of Directors is shown below:
| Flat rate compensation | Attendance4 compensation | Overall5 compensation | |
| in CHF | 2012 2011 | 2012 2011 | 2012 2011 |
| Claude Hauser, Chairman1 (until 30.06.127) Human Resources and Remuneration Committee (Chairman) | 188‘500 365'000 | – – | 188‘500 365'000 |
| Andrea Broggini (member until 30.06.12, Chairman1 from 01.07.12) Audit Committee (Chairman until 30.06.12) Human Resources and Remuneration Committee (Chairman from 01.07.12) | 220‘000 55'000 | 3‘500 16'500 | 223‘500 71'500 |
| Doris Aebi, Vice-Chairwoman2 Human Resources and Remuneration (member) | 70‘000 70‘000 | 6‘000 3‘000 | 76‘000 73‘000 |
| Roger Baillod Audit Committee (member until 30.06.12, Chairman from 01.07.12) | 55‘000 55‘000 | 15‘000 12‘500 | 70‘000 67'500 |
| Dominique Biedermann (from 01.07.12) Audit Committee (member) | 27‘500 – | 7‘500 – | 35‘000 – |
| Jean-René Germanier Human Resources and Remuneration (member) | 55‘000 55‘000 | 9‘000 3‘000 | 64‘000 58‘000 |
| Paola Ghillani6 Audit Committee (member) | 55‘000 55‘000 | 10‘000 12‘500 | 65‘000 67‘500 |
| Salomé Paravicini (until 30.06.127) Audit Committee (member) | 27‘500 55‘000 | 2‘500 12‘500 | 30‘000 67‘500 |
| Thomas Rudolph Finance Committee (member) | 55‘000 55‘000 | 3‘000 4‘000 | 58‘000 59‘000 |
| Ursula Schoepfer Finance Committee (member until 30.06.12, Chairwoman from 01.07.12) | 55‘000 55‘000 | 8‘000 5‘500 | 63‘000 60‘500 |
| Heinz Winzeler Finance Committee (Chairman until 30.06.12, member from 01.07.12) | 55‘000 55‘000 | 4'000 8‘000 | 59‘000 63‘000 |
| Hans A. Wüthrich (from 01.07.12) Audit Committee (member) | 27'500 – | 5'000 – | 32'500 – |
| Patrick Avanthay (Employee representative)3 | – – | 12'000 11‘000 | 12‘000 11‘000 |
| Ruth Rauschenbach (from 01.07.12) (Employee representative)3 | – – | 8'000 – | 8'000 – |
| Daniela Suter (until 30.06.128) (Employee representative)3 | – – | 4'000 11‘000 | 4‘000 11‘000 |
| Total 2012 Total 2011 | 891'000 875'000 | 97'500 99‘500 | 988‘500 974‘500 |
1 The Chair of the Board of Directors does not receive any attendance fees. Inc. expenses of CHF 20'000 annually (2011: shown separately). No pension fund contributions are paid.
2 The Deputy Chair receives a flat-rate remuneration of CHF 15'000.
3 The employee representatives are paid CHF 1'000 for each meeting/conference.
4 Committee meetings are remunerated as follows:
Full-day meeting: CHF 2'500
Half-day meeting: CHF 1'500
Meeting before/after meetings of the Board of Directors: CHF 500
Allowance for chair of committee: CHF 1'000 (per meeting, applicable until 30.06.2012),
CHF 10'000 (fixed annual fee, applicable from 01.07.2012)
5 Plus overnight accommodation and board at the company’s own seminar centre during meetings of the Board of Directors. No pension fund contributions are paid.
6 Plus remuneration for seats on the Issue and Stakeholder Forum (CHF 3'000 in 2011, CHF 1'500 in 2012)
7 Plus leaving gift at end of term of office CHF 6'000
8 Plus leaving gift at end of term of office CHF 5'000
The President of the G. and A. Duttweiler Foundation receives a flat-rate payment of CHF 55'000 for attending meetings of the Board of Directors.
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 2012 (2011: CHF 4.95 million). The highest single salary paid (Herbert Bolliger, Chief Executive Officer) was CHF 866'000 (2011: CHF 860'000). Two-thirds of pension fund contributions are paid by the employer, and one-third by the employee. Members of the Executive Board are provided with a company car; no other benefits are paid. No variable remunerations are paid. The seven members of the Executive Board do not receive any form of remuneration for business-related seats on management boards, supervisory boards and foundation councils.
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, PricewaterhouseCoopers and Mitreva Treuhand und Revision AG invoiced the following:
| in 1'000 CHF | Auditing services | Other services | Total | |||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| PricewaterhouseCoopers | ||||||
| Federation of Migros Cooperatives, Magazine zum Globus, Denner AG, Migros Beteiligungen AG, Liegenschaften-Betrieb AG, LeShop, Hotelplan Group, Migros Bank, Gries Deco Company, Mibelle Ltd, Jowa AG, Cash+Carry Angehrn, Migros Cooperative Eastern Switzerland, Migros Pension Fund, Investment Foundation and group accounts Migros Community | 2'566 | 2'249 | 362 | 395 | 2'928 | 2'644 |
| Mitreva Treuhand und Revision AG | ||||||
| Other Group companies | 4'031 | 4'193 | 200 | 324 | 4'231 | 4'517 |