Remuneration Report
Migros has a clearly defined remuneration policy: the remuneration of Migros' management is based on predetermined salary bands. The FMC Board of Directors issues guidelines for the remuneration of the other organs.
The salary bands define minimum and maximum salaries for the various management levels. They are regularly reviewed and adjusted by the FMC Board of Directors and must be approved by the G. and A. Duttweiler Foundation. Mitreva AG verifies that the salary bands are adhered to; the Chairwoman of the Board of Directors is informed of the results in writing.
Migros' remuneration model is clear and simple. Salaries are based consistently on rates of pay in the market, and the rationale of social capital is taken into account when fixing them. Workplace quality is a conscious component of responsible management. The benchmark working conditions, such as minimum wages, regulations for annual leave and employee training entitlements, are published on the Migros employment webpage.
For the remuneration of the Migros organs, the Board of Directors issues guidelines that are regularly reviewed and adjusted. These also apply to the external members of the boards of directors of FMC subsidiary companies. Internal members do not receive any form of remuneration for such mandates. The remuneration of the FMC Board of Directors is approved by the G. and A. Duttweiler Foundation.
For the remuneration of the Migros organs, the Board of Directors issues guidelines that are regularly reviewed and adjusted.
The bonus-free remuneration and 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 at Migros. They are not entitled to any contractually regulated severance pay.
Fees paid to members of the Board of Directors
Members of the FMC Board of Directors (including the Chairwoman) received a total of CHF 1'157'600 in fees in 2019 (2018: CHF 1'143'350), including all attendance fees for committee meetings and conferences. No other forms of remuneration are paid, in particular no expenses. The Chief Executive Officer and the managing directors of the regional Cooperatives did not receive any form of remuneration in their role 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:
Remuneration paid to members of the Board of Directors
| Flat-rate remuneration | Attendance fee 5 | Total remuneration 6 | ||||
|---|---|---|---|---|---|---|
| In CHF | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| Ursula Nold (president), since 01.07.2019 Remuneration and Nominations Committee (president), Evaluation Committee until 22.08.2019 (president) 1 |
199'100 | 0 | - | - | 199'100 | - |
| Andrea Broggini (Chairman), until 30.06.2019 Remuneration and Nominations Committee (Chairman) 2 |
210'000 | 420'000 | - | - | 210'000 | 420'000 |
| Doris Aebi, (vice-president), until 30.06.2019 Remuneration and Nominations (member), ADH (strategic issues) 3 |
38'250 | 76'500 | 15400 | 24'350 | 53'650 | 100'850 |
| Roger Baillod Remuneration and Nominations Committee (member), Evaluation Committee (president) until 15.04.2019 |
60'000 | 60'000 | 23350 9 | 28'100 | 83'350 | 88'100 |
| Dominique Biedermann Audit Committee (member) |
60'000 | 60'000 | 28500 | 9'900 | 88'500 | 69'900 |
| Jean-René Germanier Remuneration and Nominations Committee (member), Evaluation Committee until 15.04.2019 and from 22.08.2019 (member) 8 |
60'000 | 60'000 | 19850 | 8'400 | 79'850 | 68'400 |
| Paola Ghillani Audit Committee (member), ADH (strategic issues) |
60'000 | 60'000 | 33550 | 26'400 | 93'550 | 86'400 |
| Roelof Joosten, from 01.07.2018 Finance Committee (member) (deceased 02.03.2020) |
60'000 | 30'000 | 4400 | 1'650 | 64'400 7 | 31'650 |
| Thomas Rudolph Finance Committee (member) 10 11 |
60'000 | 60'000 | 4400 | 6'600 | 64'400 | 66'600 |
| Ursula Schoepfer Finance Committee (Chairwoman) |
60'000 | 60'000 | 16400 | 20'250 | 76'400 | 80'250 |
| Heinz Winzeler, until 30.06.2018 Finance Committee (member) |
30'000 | 3'300 | 33'300 | |||
| Hans A. Wüthrich Audit Committee (Chairman) 3 |
68'250 | 60'000 | 52500 | 15'900 | 120'750 | 75'900 |
| Patrick Avanthay (Employee Representative) 4 |
- | - | 12'100 | 11'000 | 12'100 | 11'000 |
| Andrea Hilber Truttmann (Employee Representative) 4 |
- | - | 11'550 | 11'000 | 11'550 | 11'000 |
| Total | 935'600 | 976'500 | 222'000 | 166'850 | 1'157'600 | 1'143'350 |
1 The President of the Administration does not receive an attendance fee.
Plus contributions to the occupational pension scheme and pension fund contributions.
2 The President of the Administration does not receive an attendance fee.
Plus contributions to the occupational pension scheme. No pension fund contributions are paid.
3 The Deputy Chair receives flat-rate remuneration of CHF 16'500.
4 The employee representatives are paid CHF 1'100 for each meeting/conference.
5 Committee meetings are remunerated as follows:
Full-day meeting: CHF 2'750
Half-day meeting: CHF 1'650
Meeting before/after meetings of the Board of Directors: CHF 550
Allowance for chair of committee: CHF 12'000 (fixed annual fee)
Evaluation committee (only for pending elections), full-day meeting: CHF 1'350, half-day meeting: CHF 800
6 Plus accommodation and meals in our own seminar centre during the administrative meetings.
The total compensation includes expenses of 10% of the lump sum compensation.
Plus statutory contributions to social insurance. No pension fund contributions are paid (except for the President)
7 Travel costs up to the Swiss border are covered by the FMC.
8 Plus remuneration for the seat on the board of Seba Aproz SA, amounting to CHF 10'000 per year.
9 Plus remuneration for the chairmanship of the board of Mitreva AG, amounting to CHF 16'500 per year.
10 Plus consulting fee of CHF 27'910 (in his capacity as Director of the Research Centre for Retail Management and holder of the Gottlieb Duttweiler Chair) for the development of the new supermarket/ consumer market strategy
11 Since 2000, Migros Culture Percentage has made 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 Institute of Retail Management and the Gottlieb Duttweiler Chair at the University of St. Gallen as well as the holder of a University-funded chair.
Salaries of the Executive Board
The seven members of the FMC Executive Board (including the CEO) received a total of CHF 5.488 million in 2019 (2018: CHF 5.507 million). The highest single salary paid (Fabrice Zumbrunnen, Chief Executive Officer) was CHF 900'000 (2018: CHF 880'000). 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. An expenses allowance is included in the salaries above. The members of the Executive Board are not entitled to any contractually regulated severance pay, and no variable remuneration is paid. The seven members of the Executive Board do not receive any form of remuneration for business-related seats on management boards, supervisory boards or foundation boards. The remuneration for any approved mandates outside the Migros Group is paid to the employer.
