Compensation of BoD members in Switzerland

The study on the topic of "Remuneration of BoD members in Switzerland", was conducted by SwissVR in collaboration with the consulting firm Deloitte and the Lucerne University of Applied Sciences and Arts.

The SwissVR study addresses the question of how BoD members are compensated in Switzerland and whether existing compensation practices are appropriate. The study shows that most BoD members in Switzerland do not receive any compensation. Only about one-third of the companies surveyed pay their BoD members any form of compensation. Those that do receive compensation usually get a small financial reward or other benefits such as training or conference attendance. We have summarized the most important facts for you:

Much room for improvement

Many companies are aware of the importance of BoD members, but few have clear policies and processes for their compensation. BoD member compensation is often unclear and not transparent. There is also a wide discrepancy in the compensation of BoD members in different companies. Some companies pay no compensation at all, while others offer generous compensation to their BoD members.

Why companies do not pay compensation to their BoD members

Some companies believe that VR members should do their work for passion and not for financial reasons. Other companies believe that VR members are already sufficiently rewarded through other benefits such as training or conference attendance. Another reason why companies do not pay compensation is that they do not have sufficient financial resources to adequately pay VR members.

Recommendations for companies

The study concludes with recommendations for companies on how to improve their compensation practices to better recognize and reward the value and importance of BoD members. These include establishing clear guidelines and processes for BoD member compensation and making compensation transparent and fair. Companies should also ensure that BoD member compensation is based on individual member contributions and performance. One way to achieve this is to implement a reward system based on individual performance.

Summary

There is room for improvement in the compensation of BoD members in Switzerland. Many companies are aware of the importance of BoD members, but few have clear guidelines and processes for their compensation.