Remuneration Report
Migros 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 Chairman of the Board of Directors is informed of the results in writing.
The remuneration model of Migros 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 http://www.migros.ch/de/stellen/arbeitgeberin-migros.html (in German), 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 Migros. 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 Chairman) received a total of CHF 1'014'500 in fees in 2013 (2012: CHF 98'500), 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 regional 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 | 2013 2012 | 2013 2012 | 2013 2012 |
| Andrea Broggini, Chairman1 (member until 30.06.12, Chairman from 01.07.12) Human Resources and Remuneration Committee (Chairman) | 220‘000 55'000 | 3‘500 16'500 | 223‘500 71'500 |
| Doris Aebi, Vice-Chairwoman2 Human Resources and Remuneration Committee (member) | 70‘000 70‘000 | 6‘000 3‘000 | 76‘000 73‘000 |
| Roger Baillod Audit Committee (Chairman) | 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 Germanier6 Human Resources and Remuneration Committee (member) | 55‘000 55‘000 | 9‘000 3‘000 | 64‘000 58‘000 |
| Paola Ghillani Audit Committee (member) | 55‘000 55‘000 | 10‘000 12‘500 | 65‘000 67‘500 |
| Thomas Rudolph7 Finance Committee (member) | 55‘000 55‘000 | 3‘000 4‘000 | 58‘000 59‘000 |
| Ursula Schoepfer Finance Committee (Chairwoman) | 55‘000 55‘000 | 8‘000 5‘500 | 63‘000 60‘500 |
| Heinz Winzeler Finance Committee (member) | 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 – |
| Total 2013 Total 20128 | 891'000 875'000 | 97'500 99‘500 | 988‘500 974‘500 |
1 The Chairman of the Board of Directors does not receive any attendance fees. No pension fund contributions are paid. 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 10'000 (fixed annual fee)
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 the seat on the board of Seba Aproz SA, amounting to CHF 10'000 per year.
7 Since 2000, Migros Culture Percentage has been making an annual contribution of CHF 400'000 to the Gottlieb Duttweiler Chair of International Retail Management at the University of St. Gallen's Institute of Retail Management. The Migros funds are used to finance postdoctoral positions. Thomas Rudolph is the Director of the Gottlieb Duttweiler Chair and holder of a University-funded chair.
8 Includes remuneration of the members who had left as at 30 June 2012 (Claude Hauser, Salomé Paravicini, Daniela Suter).
Salaries of the Executive Board
The seven members of the FMC Executive Board (including the CEO) received a total of CHF 5.17 million in 2013 (2012: CHF 5.10 million). The highest single salary paid (Herbert Bolliger, Chief Executive Officer) was 885'000 (2012: CHF 866'000). 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.