Annual Report 2024

Annual Report 2024

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9. Remuneration awarded to the Group Executive Board and share ownership in 2024

9.1 Remuneration awarded in 2024

This section was audited by the external auditor.

In 2024, the members of the Group Executive Board received a total remuneration of TCHF 11,566 (previous year: TCHF10,179). The highest-paid individual in 2024 was Christian Buhl, CEO. The factors impacting the level of remuneration paid are summarised in the explanatory comments to the remuneration table.

The following table shows details of remuneration (gross) for 2024 and 2023:

Group Executive Board – Remuneration details

 

 

2024

 

2023

 

 

C. Buhl CEO

 

Total

 

C. Buhl CEO

 

Total

 

 

CHF

 

CHF

 

CHF

 

CHF

Salary

 

 

 

 

 

 

 

 

- Fixed remuneration (excluding representation allowance)

 

986,804

 

3,597,642

 

1,026,805

 

3,577,638

- Variable remuneration 1

 

924,000

 

3,349,240

 

720,720

 

2,468,090

Thereof in shares in 2024 2

 

 

 

 

 

720,553

 

1,811,597

Shares/options

 

 

 

 

 

 

 

 

- Call options MSOP 2024/2023 3

 

1,249,976

 

3,111,886

 

1,112,774

 

2,925,715

- Call options MSPP 2024/2023 4

 

94,237

 

236,934

 

94,221

 

220,937

Non-cash benefits

 

 

 

 

 

 

 

 

- Private share of company vehicle 5

 

7,932

 

42,144

 

7,932

 

42,144

Expenditure on pensions

 

 

 

 

 

 

 

 

- Pension plans

 

124,645

 

762,997

 

101,421

 

609,911

- Social insurance

 

191,812

 

454,377

 

96,024

 

323,516

- Contribution health/accident insurance

 

1,512

 

11,003

 

1,531

 

11,137

Total 6

 

3,580,918

 

11,566,223

 

3,161,428

 

10,179,088

1

The amounts to be paid (current year), and the amounts effectively paid (previous year) respectively are shown. The payment of the variable remuneration occurs in the following year. Members of the Group Executive Board are free to choose between a payment in shares or in cash.

2

Registered shares of the company with a par value of CHF 0.10 each; 3-year blocking period, valued at fair market value at grant date of CHF 513.20 (previous year: CHF 489.40).

3

Call options on registered shares of the company with a par value of CHF 0.10 each, issued within the scope of the Management Stock Option Programme (MSOP); 1 option entitles to purchase 1 registered share at an exercise price of CHF 527.65 (previous year: CHF 504.45); allocation corresponds to the remuneration in the case of achievement of the ROIC target level; definitive vesting of the option subject to effective target achievement, 3-year vesting period (1 tranche at 100%); the total value of the call options is evaluated as of the grant date. Market value of CHF 67.12 (previous year: CHF 65.25) determined using the binomial method.

4

Call options on registered shares of the company with a par value of CHF 0.10 each, issued within the scope of the Management Share Participation Programme (MSPP); 1 option entitles to purchase 1 registered share at an exercise price of CHF 527.65 (previous year: CHF 504.45); allocation corresponds to the remuneration in the case of achievement of the ROIC target level; definitive vesting of the option subject to effective target achievement, 3-year vesting period (1 tranche at 100%); the total value of the call options is evaluated as of the grant date. Market value of CHF 67.12 (previous year: CHF 65.25) determined using the binomial method.

5

Valuation in accordance with the guidelines of the Swiss Federal Tax Administration FTA (0.9% of the purchase cost per month).

6

Immaterial payments (below CHF 500) are not included in the total. Overall, these payments do not exceed CHF 2,000 per member of the Group Executive Board.

Explanatory comments to the remuneration table

  • There were seven members in the GEB in 2024 who received compensation for the full year. This compares to seven members in 2023 who received compensation for the full year.
  • The fixed compensation paid to the GEB is at a similar level in total compared to the previous year. The fixed compensation of the CEO was reduced by 4% as a result of the change in pay mix, while the other GEB members received an average increase of around 2%.
  • The variable remuneration (STP payout) of the CEO increased by 28% in total compared to the amount paid out for performance year 2023, by 39% for the other GEB members and totally by 35%. This reflects the very good company performance in a strongly declining market with all four group financial goals achieved at maximum level and on target achievement of the group ESG goal. The achievement per goal is outlined in the STP performance section below.
  • The value of the LTP grant increased by 6% in total compared to the value of the LTP granted in 2023. This reflects the increase to the CEO’s LTP target level to 125% of his annual base salary.
  • Pension and social insurance contributions increased due to options being excercised.

9.2 Performance in 2024

This section was not audited by the external auditor.

In 2024, the Geberit Group’s net sales reached the previous year’s level at CHF 3,085 million. Adjusted for negative currency effects of CHF 76 million, the increase was +2.5%, despite the strong decline seen in the building construction industry. The growth was driven entirely by higher volumes. In addition to a rebuilding of inventories at wholesalers in the first half of the year, this increase was primarily due to the expansion of the market position and the strong development of various new products.

Results in 2024 were impacted by the unfavourable currency situation. However, after currency adjustments, the operating results and earnings per share developed positively. While net income was negatively impacted by the higher tax rate due to the OECD minimum taxation law, it still reached the previous year’s level in local currencies. Despite the extremely challenging market environment, operating margins were only slightly below the previous year’s level. The higher sales volumes and lower direct material costs compared to the previous year had a positive impact. In contrast, the high levels of wage inflation in many countries had a negative impact. Furthermore, investments were made in various projects to strengthen the company’s market position. These included growth initiatives in selected developing markets, marketing expenses for the launch of new products and for celebrating the 150th anniversary of the Geberit Group, plus various digitalisation and IT projects.

Overall, operating cashflow (EBITDA) fell by 0.9% to CHF 913 million. However, after currency adjustments this corresponded to an increase of 2.7%. The EBITDA margin decreased by 30 basis points to 29.6%; after currency adjustments, it reached the level of the previous year. Operating profit (EBIT) decreased by 0.9% to CHF 762 million (currency-adjusted +3.2%), corresponding to an EBIT margin of 24.7% (previous year 24.9%). Net income decreased by 3.2% to CHF 597 million (currency-adjusted -0.2%), corresponding to a return on net sales of 19.4% (previous year 20.0%). The reason for the marked decline in net income compared to the operating results was the significantly higher tax rate, which was primarily driven by the OECD minimum taxation law in force since 2024. In terms of earnings per share, the positive effects of the share buyback programmes led to a smaller decline compared to the development of net income. Accordingly, earnings per share decreased slightly by 1.8% to CHF 18.06 (previous year CHF 18.39); in local currencies, this figure increased by 1.3%. Free cashflow decreased by 2.0% to CHF 613 million. The lower operating cashflow and a negative year-on-year development in net working capital were only partially compensated for by the lower investment volume. The free cashflow margin reached 19.9% (previous year 20.3%).

The return on invested capital (ROIC) decreased to 23.0% (previous year 23.6%), mainly due to the higher tax rate driven by the OECD minimum taxation law in force since 2024.

STP performance 

The STP performance achievement and payout range for the Group financial performance, ESG performance, and for individual performance is described below. As explained in section 7.4 Disclosure of targets, this represents commercially sensitive information, no further details on the required achievement levels are disclosed.

Group financial business goals and ESG goal achieved in 2024

Group Executive Board – STP Performance

Performance

 

 

 

Payout

Group performance goal

 

Weight
(in % of ABS 1)

 

Achieve­ment

 

 

 

Payout
(in % of
ABS 1)

 

Min.
(0%)

 

Target
(50%)

 

Max.
(100%)

Net sales growth (currency adjusted)

 

16%

 

+2.5%

 

 

 

16%

 

 

 

 

 

 

 

 

 

▇

 

 

EPS growth

 

16%

 

-1.8%

 

 

 

16%

 

 

 

 

 

 

 

 

 

▇

 

 

EBITDA margin

 

16%

 

29.6%

 

 

 

16%

 

 

 

 

 

 

 

 

 

▇

 

 

ROIC

 

16%

 

23.0%

 

 

 

16%

 

 

 

 

 

 

 

 

 

▇

 

 

CO2 emissions

 

16%

 

-0.1%

 

 

 

8.4%

 

 

 

 

 

 

 

▇

 

 

 

Total weight

 

80%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total weighted average payout (of ABS 1)

 

 

 

72.4%

 

 

 

 

 

 

 

 

 

▇

 

 

1

Annual base salary

Individual performance remuneration achieved in 2024

In 2024, the Group Executive Board outperformed most of their objectives. Key individual achievements include:

Group Executive Board – Individual performance remuneration achieved

Examples of achievements independent of function

 

Examples of achievements specific to functions

People

  • Ensured effective succession planning by filling several senior positions
  • Developed 105 young talents
  • Established international transfers for young talents

 
  • Gained market shares per region
  • Achieved customer activities and targets according to CRM
  • Strengthened customer relations with 468,000 customer contacts and 93,000 training participants
  • Won large key building projects
  • Achieved pricing and bonus/rebate negotiations according to plan
  • Launched successful product, e.g. Alba shower toilet, Mapress Therm
  • Grew sales disproportionally for recently introduced innovations, e.g. SuperTube
  • Realised several digital projects, e.g. B2C lead management which generated 39,000 leads
  • Reduced direct material costs by 5%
  • Increased productivity in plants by 3.0%
  • Decreased waste rate in Ceramic plants

 
  • Increased productivity in logistics
  • Achieved target for delivery service level delivery
  • Reduced AFR by 17.8%
  • Achieved target for capacity expansion projects, e.g. plant in Lichtenstein (DE), Pfullendorf (DE) and India
  • Secured new logistic location in Germany
  • Reduced quality cost versus previous year
  • Strengthened innovation pipeline balanced between incremental improvements and larger innovation projects
  • Achieved targets for key projects in the Technology pipeline
  • Further improved product data quality
  • Successfully migrated IT systems into the group ERP
  • Strengthened IT security
  • Further rolled-out training in antitrust and data protection

Organisation

  • Established an AI Competence Centre
  • Introduced a new structure within the Products area

 

 

Culture

  • Further developed cultural onboarding of new employees
  • Achieved target fluctuation rate of 6.0%

 

 

The individual performance payout ranged from 15% to 20% of the annual base salary for the GEB members and amounted to 20% of the annual base salary for the CEO.

The overall STP payout percentage including group financial and ESG goals and individual performance ranges from 87.4% to 92.4% of the annual base salary for the GEB members excluding the CEO and amounts to 92.4% of the annual base salary for the CEO. This compares to a payout range of 64.3% to 69.3% for the GEB and to a payout of 69.3% for the CEO in 2023.

LTP performance (MSOP)

The performance period for the performance stock options granted in 2022 under the MSOP was 2022 to 2024. The average ROIC achievement over the three years was 24.4%, which resulted in a vesting level of 43%.

The ROIC performance and payout level at vesting is illustrated below:

Group Executive Board – LTP Performance

Performance

 

 

 

Vesting (of allocated options)

Grant

 

Performance period

 

Avg. ROIC achieved 1

 

 

 

Vesting level

 

Min.
(0%)

 

Target
(50%)

 

Max.
(100%)

2022

 

2022–2024

 

24.4%

 

 

 

43%

 

 

 

 

 

▇

 

 

 

 

 

 

1

Over three-year performance period

9.3 Shareholdings of the Group Executive Board

As of the end of 2024 and 2023, the members of the Group Executive Board held the following shares in the company:

Group Executive Board – Shareholdings 2024

 

 

Maturity

 

Average exercise price in CHF

 

C. Buhl
CEO

 

T. Knechtle
CFO

 

R. van Triest

 

M. Baumüller

 

M. Ziegler

 

C. Rapp

 

A. Lange

 

Total

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholdings Group Executive Board

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

 

23,609

 

1,462

 

2,090

 

4,965

 

6,602

 

2,787

 

1,078

 

42,593

Percentage voting rights shares

 

 

 

 

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

0.12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call options 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of vesting period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lapsed

 

2024–2030

 

442.97

 

200,925

 

0

 

58,118

 

49,823

 

60,629

 

40,466

 

7,851

 

417,812

2025

 

2032

 

584.10

 

48,788

 

14,911

 

12,395

 

10,478

 

16,203

 

13,687

 

1,802

 

118,264

2026

 

2033

 

504.45

 

36,996

 

12,501

 

9,226

 

7,295

 

12,111

 

10,272

 

8,048

 

96,449

2027

 

2034

 

527.65

 

40,054

 

12,354

 

9,177

 

7,300

 

11,777

 

10,631

 

8,493

 

99,786

Total options

 

326,763

 

39,766

 

88,916

 

74,896

 

100,720

 

75,056

 

26,194

 

732,311

Percentage potential share of voting rights options

 

0.93%

 

0.11%

 

0.25%

 

0.21%

 

0.29%

 

0.21%

 

0.07%

 

2.07%

1

Purchase ratio: 1 share for 1 option. The number of options corresponds to the allocation in the event of maximum target achievement, i.e. the unvested options are subject to a performance-based vesting condition.
Group Executive Board – Shareholdings 2023

 

 

Maturity

 

Average exercise price in CHF

 

C. Buhl
CEO

 

T. Knechtle
CFO

 

R. van Triest

 

M. Baumüller

 

M. Ziegler

 

C. Rapp

 

A. Lange

 

Total

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholdings Group Executive Board

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

 

20,024

 

887

 

2,090

 

4,965

 

5,928

 

2,373

 

690

 

36,957

Percentage voting rights shares

 

 

 

 

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

< 0.1%

 

0.11%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call options 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of vesting period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lapsed

 

2023–2029

 

417.63

 

174,483

 

0

 

50,408

 

40,930

 

46,002

 

27,756

 

6,281

 

345,860

2024

 

2030

 

569.65

 

36,784

 

0

 

11,870

 

10,063

 

14,907

 

12,710

 

1,570

 

87,904

2025

 

2032

 

584.10

 

48,788

 

14,911

 

12,395

 

10,478

 

16,203

 

13,687

 

1,802

 

118,264

2026

 

2033

 

504.45

 

36,996

 

12,501

 

9,226

 

7,295

 

12,111

 

10,272

 

8,048

 

96,449

Total options

 

297,051

 

27,412

 

83,899

 

68,766

 

89,223

 

64,425

 

17,701

 

648,477

Percentage potential share of voting rights options

 

0.84%

 

0.08%

 

0.24%

 

0.20%

 

0.25%

 

0.18%

 

0.05%

 

1.84%

1

Purchase ratio: 1 share for 1 option. The number of options corresponds to the allocation in the event of maximum target achievement, i.e. the unvested options are subject to a performance-based vesting condition.

As of 31 December 2024, and in compliance with the Articles of Incorporation of Geberit AG, there were no outstanding loans or credits between the company and the members of the Group Executive Board, closely related parties or former members of the Group Executive Board.

9.4 Remuneration ratios

In 2024, the average annual fixed compensation of all employees in the Group amounted to CHF 46,907 (excluding the CEO). The ratio of the annual fixed remuneration paid to the CEO to the average annual fixed remuneration of all employees (excluding the CEO) was 21.

For further details, see our Sustainability report.

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