9 EMPLOYEE BENEFITS

 

9.1 NUMBER OF EMPLOYEES

 

2024

2025

FTE (full-time equivalent)

 

 

Employees – year-end

3,265

 3,244 

Employees – average

3,413

 3,247 

9.2 PERSONNEL EXPENSES

Personnel expenses include the following:

 

 Notes

2024

2025

CHF 1,000 

 

 

Salaries and wages 

238,939

 242,862 

Social security  

27,471

 29,835 

Post-employment benefits relating to 

 

 

Defined contribution plans 

4,717

 5,170 

Defined benefit plans9.3

11,741

 12,168 

Share-based payment 9.4

4,087

 3,067 

Termination benefits 

 - 

 1,308 

Other personnel expenses 

16,521

 11,460 

  

 

 

Total personnel expenses 

303,476

 305,870 

9.3 POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS

9.3.1 CHARACTERISTICS OF DEFINED BENEFIT PLANS AND RISKS ASSOCIATED WITH THEM

 

31.12.2024

31.12.2025

 

Swiss

plans

International plans

Total

Swiss

plans

International plans

Total

Number of plans

 5 

 3 

 8 

 5 

 3 

 8 

 

 

 

 

 

 

 

Actives

 

 

 

 

 

 

Number

 707 

106

813

 709 

 106 

 815 

Defined benefit obligation (CHF 1,000)

208,601

3,987

 212,588

 206,223 

 3,499 

 209,722 

Weighted average duration in years

17.5

5.4

17.3

 16,9 

 8,7 

 14,7 

 

 

 

 

 

 

 

Retirees

 

 

 

 

 

 

Number

 9

–

9

 10 

 - 

 10 

Defined benefit obligation (CHF 1,000)

 5,069 

–

 5,069

 4,008 

 - 

 4,008 

Weighted average duration in years

13.8

–

13.8 

 13,0 

 - 

 13,0 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

Number

716

106

822

 719 

 106 

 825 

Within the Group, various defined benefit plans exist, which differ in their purpose and financing according to local needs:

 

Country

Benefits

Funded/

Unfunded

Description and risks

Switzerland

(Swiss plans)

Retirement, death-in-service and disability benefits 

Funded

Nature of the benefits provided

The pension plans of Tecan Group Ltd., Tecan Schweiz AG, Tecan Sales Switzerland AG and Tecan Trading AG are plans with guaranteed minimum interest credited on the savings and fixed conversion rates at retirement. Disability and death benefits are defined as a percentage of the insured salary.

 

Regulatory framework (minimum)

The plan provides benefits based on the LPP/BVG law, which defines the minimum requirements for the mandatory employer-sponsored pension plans in Switzerland. An annual salary of up to CHF 90,720 (as from January 1, 2024) is required to be insured and funding is age-related, with contribution rates ranging from 7% to 18% as a percentage from insured salary. The conversion rate used to calculate the annuity based on the accumulated savings capital is 6.8% at normal retirement age (65 for men and women).

 

According to the LPP/BVG law, the plan must be fully funded on a static basis at all times. In the event of underfunding, corrective measures must be taken, such as additional funding by the employer or by the employer and employees, or a reduction in benefits, or a combination of both.

 

Specific plan rules

The retirement savings credits are defined as a percentage of the insured salary. The savings credits for the portion of the annual salary between CHF 26,460 and CHF 90,720 depend on age and range from 8% to 19%. The savings credits for the portion of the annual salary above CHF 90,720 are 14% for the employees and 18%, 19% and 21.8% for the members of the management. The conversion rate used to calculate the annuity based on the total accumulated savings capital is 5.2% at normal retirement age.

 

The annual disability pension is 70% of the insured salary, the annual partner’s pension is 50% of the insured salary or 60% of the current retirement pension. In the event of death before retirement, an additional lump sum of 200% of the insured salary is paid.

Country

Benefits

Funded/

Unfunded

Description and risks

Switzerland

(Swiss plans)

Retirement, death-in-service and disability benefits 

Funded

Governance of the plan

The companies are affiliated to the collective foundation AXA Collective BVG Foundation. The collective foundation is a separate legal entity. The foundation is responsible for the governance of the plan and its board of trustees is composed of an equal number of employer and employee representatives elected by each of the affiliated companies. The foundation has established investment guidelines, particularly the strategic allocation with ranges.

 

In addition, each affiliated company has a pension committee, which is composed of an equal number of representatives of the company and the employees. The pension committee is responsible for setting the benefits of the plan.

 

Risks to which the plan exposes the Group

The plan provider, AXA Collective BVG Foundation, has reinsured the risks of disability, death and longevity with AXA insurance. The Group is therefore only exposed to the investment risk and the risk that the AXA Collective BVG Foundation may terminate the affiliation contract or increase the premiums.

 

Plan amendments, settlements or curtailments

There were no plan amendments, settlements or curtailments during the financial years 2024 and 2025.

Austria

(International plans)

Long-service leave benefits

Unfunded

Nature of the benefits provided

The severance plan of Tecan Austria GmbH and Tecan Sales Austria GmbH guarantees a one-time lump-sum payment upon termination of employment. The plan was closed to new members on December 31, 2002. Participants in the plan are all employees with at least 3 years of service and entry date prior to January 1, 2003. Membership in the plan is mandatory.

 

Regulatory framework

The plan provides benefits in accordance with Austrian law (AngG 23 and 23a) which provides benefits in the event of retirement, death (50%), disability or termination of employment. Benefits are vested after 3 years of service, while voluntary termination of employment results in the forfeiture of all benefits.

 

Benefits are based on years of service and range from a lump sum of two months' salary after three years of service to 12 months' salary after 25 years of service. Monthly salary is defined as one twelfth of the total annual salary for the previous 12 months.

 

Governance of the plan

The company (employer) is solely responsible for the governance of the plan.

 

Risks to which the plan exposes the Group

The plan is exposed to inflation risk and salary increase risk. There is no longevity risk as benefits are payable at retirement at the latest.

 

Plan amendments, settlements or curtailments

There were no plan amendments, settlements or curtailments during the financial years 2024 and 2025.

Other

(International plans)

Retirement benefits

Unfunded

Tecan Japan Co., Ltd. and Tecan Italia Srl. have two smaller pension plans with a limited number of participants.

9.3.2 AMOUNTS RECOGNIZED IN THE FINANCIAL STATEMENTS

The amounts recognized in the balance sheet are as follows:

 

 

31.12.2024

31.12.2025

CHF 1,000

 

 

Swiss plans

 

 

Present value of obligations arising from retirement benefit plans (funded)

213,670

 210,231 

Related fair value of plan assets

(189,290)

 (200,417) 

Deficit Swiss plans

24,380

 9,814 

 

 

 

International plans

 

 

Present value of obligations arising from retirement benefit plans (unfunded)

969

 783 

Present value of obligations arising from long-service leave benefit plans (unfunded)

3,018

 2,716 

Deficit International plans

3,987

 3,499 

 

 

 

Total liability for post-employment benefits

28,367

 13,313 

 

The components of defined benefit cost are as follows:

 

 

2024

2025

 

Swiss

plans

International

plans

Total

Swiss

plans

International

plans

Total

CHF 1,000

 

 

 

 

 

 

Current service cost

11,519

222

11,741

 11,969 

 199 

 12,168 

 

 

 

 

 

 

 

Defined benefit cost included in operating profit

11,519

222

11,741

 11,969 

 199 

 12,168 

 

 

 

 

 

 

 

Net interest cost on liability for post-employment benefits

473

129

602

 180 

 98 

 278 

 

 

 

 

 

 

 

Defined benefit cost included in finance cost

473

129

602

 180 

 98 

 278 

Total defined benefit cost included in profit or loss

11,992

351

12,343

 12,149 

 297 

 12,446 

 

 

 

 

 

 

 

Actuarial (gains)/losses on obligations

 

 

 

 

 

 

Changes in demographic assumptions

–

(11)

(11)

 - 

 (56) 

 (56) 

Changes in financial assumptions

10,390

44

10,434

 (7,396) 

 (50) 

 (7,446) 

Experience adjustments

(12,957)

(56)

(13,013)

 (6,024) 

 (218) 

 (6,242) 

Return on plan assets (excluding interest income)

(16,787)

–

(16,787)

 (4,772) 

 - 

 (4,772) 

 

 

 

 

 

 

 

Remeasurement gains included in other
comprehensive income

(19,354)

(23)

(19,377)

 (18,192) 

 (324) 

 (18,516) 

 

 

 

 

 

 

 

Translation differences included in other comprehensive income

–

24

24

 - 

 (89) 

 (89) 

 

 

 

 

 

 

 

Total defined benefit cost recognized

(7,362)

352

(7,010)

 (6,043) 

 (116) 

 (6,159) 

       

The Group expects to contribute CHF 10.2 million to its defined benefit plans in 2026.

 

Changes in the present value of the defined benefit obligation are as follows:

 

 

2024

2025

 

Swiss

plans

International

plans

Total

Swiss

plans

International

plans

Total

CHF 1,000

 

 

 

 

 

 

Balance at January 1

202,735

3,896

206,631

 213,670 

 3,987 

 217,657 

Current service cost

11,519

222

11,741

 11,969 

 199 

 12,168 

Employee contributions

6,160

–

6,160

 6,195 

 - 

 6,195 

Insurance premiums

(2,176)

–

(2,176)

 (2,218) 

 - 

 (2,218) 

Benefits paid

(4,766)

(261)

(5,027)

 (8,051) 

 (372) 

 (8,423) 

Interest expense

2,765

129

2,894

 2,086 

 98 

 2,184 

Actuarial gains

(2,567)

(23)

(2,590)

(13,420)

 (324) 

 (13,744) 

Translation differences

–

24

24

 - 

 (89) 

 (89) 

 

 

 

 

 

 

 

Balance at December 31

213,670

3,987

217,657

 210,231 

 3,499 

 213,730 

Changes in the fair value of plan assets are as follows:

 

 

2024

2025

 

Swiss plans

International plans

Total

Swiss plans

International plans

Total

CHF 1,000

 

 

 

 

 

 

Balance at January 1

162,648

 – 

162,648

 189,290 

 - 

 189,290 

Employer contributions

8,343

–

8,343

 8,523 

 - 

 8,523 

Employee contributions

6,160

–

6,160

 6,195 

 - 

 6,195 

Insurance premiums

(2,176)

–

(2,176)

 (2,218) 

 - 

 (2,218) 

Benefits paid

(4,766)

–

(4,766)

 (8,051) 

 - 

 (8,051) 

Interest income

2,294

–

2,294

 1,906 

 - 

 1,906 

Return on plan assets (excluding interest income)

16,787

–

16,787

 4,772 

 - 

 4,772 

 

 

 

 

 

 

 

Balance at December 31

189,290

– 

189,290

200,417 

 - 

200,417 

The plan assets consist of:

 

  

31.12.2024

31.12.2025

CHF 1,000   
Cash

quoted

1,893

1%

 2,004 

1%

Equity securities

quoted

64,358

34%

 76,159 

38%

Debt securities

quoted

68,144

36%

 44,092 

22%

Real estate

quoted

49,215

26%

 48,100 

24%

Other

not quoted

5,680

3%

 30,062 

15%

 

 

 

 

 

 

Balance at December 31

 

189,290

100%

 200,417 

100%

9.3.3 ACTUARIAL ASSUMPTIONS AND SENSITIVITY ANALYSIS

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

 

 

31.12.2024

31.12.2025

 

Swiss plans

International
plans

Swiss plans

International
plans

Discount rates

1.00%

2.88%

1.30%

2.84%

Rate of future salary increases

1.75%

3.14%

1.75%

3.04%

Rate of future pension increases

0.00%

0.00%

0.00%

0.00%

Rates for the projection of savings capital1

1.25%

n/a

1.25%

n/a

Mortality tables2

BVG2020G

various

BVG2020G

various

  1. Swiss plans: the rate is only applied to the mandatory part.
  2. Model 'Continuous Mortality Investigation (CMI)'.

SENSITIVITIES OF SIGNIFICANT ACTUARIAL ASSUMPTIONS

The discount rate, the rate of future salary increase and the life expectancy were identified as significant actuarial assumptions. The following impacts on the defined benefit obligation are to be expected:

 

  

31.12.2024

31.12.2025

 

Change in actuarial
assumptions

Swiss

plans

International plans

Total

Swiss

plans

International plans

Total

CHF 1,000

 

 

 

 

 

 

 

Discount rates

- 25 basis points

6,582

51

6,633

 6,768 

 45 

 6,813 

 

+ 25 basis points

(6,224)

(45)

(6,269)

 (6,283) 

 (44) 

 (6,327) 

Rate of future salary increases

- 25 basis points

(1,919)

(42)

(1,961)

 (1,638) 

 (39) 

 (1,677) 

 

+ 25 basis points

1,932

46

1,978

 1,661 

 41 

 1,702 

Life expectancy

- 1 year

(3,503)

(2)

(3,505)

 (3,338) 

 (4) 

 (3,342) 

 

+ 1 year

3,633

4

3,637

 3,465 

 4 

 3,469 

(positive = increase in obligation / negative = decrease in obligation)

The sensitivity analysis is based on realistically possible changes at the end of the reporting period. Each change in significant assumption was analyzed separately as part of the test. Interdependencies were not considered.

 

9.4 SHARE-BASED PAYMENT: EMPLOYEE PARTICIPATION PLANS

9.4.1 EMPLOYEE SHARE OPTION PLANS

The terms and conditions of the outstanding grants are as follows:

 

PlanPlan terms 

31.12.2024

31.12.2025

 

Grant date

Expiry date

Number granted

Exercise price

 

Remaining
contractual 

life (years)

Number outstanding

Remaining
contractual 

life (years)

Number outstanding

Plan 201902.11.201802.11.2025

 23,921 

228.7

 

 0.8 

8,196

 - 

 - 

Plan 202002.11.201902.11.2026

 23,334 

236.0

 

 1.8 

6,879

 0.8 

 6,513 

Plan 202102.11.202002.11.2027

 9,056 

434.2

 

 2.8 

6,071

 1.8 

 5,681 

Plan 202202.11.202102.11.2028

 7,050 

571.5

 

 3.8 

5,511

 2.8 

 4,971 

Plan 202302.11.202202.11.2029

 10,735 

356.6

 

 4.8 

9,724

 3.8 

 8,890 

Plan 202402.11.202302.11.2030

 14,313 

265.8

 

 5.8 

13,737

 4.8 

 12,508 

Plan 202502.11.202402.11.2031

 19,103 

220.2

 

 6.8 

19,103

 5.8 

 17,471 

Plan 202602.11.202502.11.2032

 27,664 

141,1

 

 - 

 - 

 6.8 

 27,664 

        

 

 

Total     

4.5

 69,221 

4.9

 83,698 

      

 

 

 

 

Thereof exercisable at December 31

37,353

 

 39,381 

All plans are granted to members of the management level 3 and 4 and have a contractual life of 7 years. The vesting conditions are one / two / three years of service for 33%/33%/34% of options. One option grants the right to purchase one Tecan share with settlement by physical delivery (equity-settled). All outstanding options are fully covered by the conditional share capital.

The number and weighted average exercise price of the share options are as follows:

 

 

2024

2025

 

Weighted average exercise price (CHF)

Number

Weighted average exercise price (CHF)

Number

Balance at January 1

318.29

59,059

297,72

 69,221 

Granted

220.20

19,103

141,10

 27,664 

Exercised

228.13

(6,558)

228,70

 (58) 

Forfeited or expired

377.52

(2,383)

259,65

 (13,129) 

 

 

 

 

 

Balance at December 31

297.72

69,221

251,98

 83.698 

The weighted average share price at the date of exercise was CHF 313.97 in 2024 and CHF 234.34 in 2025.

 

The expenses, recognized in profit or loss, are calculated as follows:

 

The fair value of services received in return for the share options granted is measured by reference to the share options vested multiplied by their fair value at grant date (measurement date). The estimate of the fair value is based on a trinomial model. Changes in the fair value of the option after the grant date do not change the fair value of the services received.

 

Fair value of share options and key assumptions (not yet vested share option plans):

 

GrantShare priceExercise price

Expected

volatility1

Option life

Expected

dividends

Risk-free

interest rate

Fair value
Plan 2023CHF 356.60CHF 356.6034.34%7.0 years0.35%1.83%CHF 134.18
Plan 2024CHF 265.80CHF 265.8036.04%7.0 years0.82%1.47%CHF 97.58
Plan 2025CHF 220.20CHF 220.2030.80%7.0 years0.58%0.45%CHF 67.37
Plan 2026CHF 141.10CHF 141.1032.91%7.0 years0.30%0.24%CHF 46.56
  1. Historic volatility with an underlying period that depends on the option life. Data source: Financial data supplier

9.4.2 EMPLOYEE SHARE PLANS

9.4.2.1 PERFORMANCE SHARE MATCHING PLANS (PSMP)

The terms and conditions of the outstanding grants are as follows, whereby all shares are delivered physically (equity-settled) and free of charge:

 

Plan

Employees entitled/

grant date

Number of

shares granted

Fair value 

at grant

Vesting period

Vesting conditions

Performance share matching plan (PSMP) 2023
Initial grant

Extended Management Board 

on March 8, 2023

9,510 shares

CHF 388.30 

Immediate vesting1

None

Other management 

on May 2, 2023

1,190 shares

CHF 380.70

 

 

Matching

shares

Extended Management Board 

on March 8, 2023

23,775 shares

(maximum of 

potential shares granted)

CHF 382.50 

January 1, 2023 

to December 31, 2025

Three years of service and 

­ performance target

Other management 

on May 2, 2023

2,975 shares

(maximum of 

potential shares granted)

CHF 374.90 

 

Performance share matching plan (PSMP) 2024
Initial grant

Extended Management Board 

on March 6, 2024

11,771 shares

CHF 351.00 

Immediate vesting1

None

Other management 

on May 2, 2024

1,509 shares

CHF 322.60

 

 

Matching

shares

Extended Management Board 

on March 6, 2024

29,428 shares

(maximum of 

potential shares granted)

CHF 345.00 

January 1, 2024

 to December 31, 2026

Three years of service and

­ performance target

Other management 

on May 2, 2024

3,773 shares

(maximum of 

potential shares granted)

CHF 316.60 

 

Performance share matching plan (PSMP) 2025
Initial grant

Extended Management Board 

on March 6, 2025

22,135 shares

CHF 186.50

Immediate vesting1

None

Other management 

on May 2, 2025

4,671 shares

CHF 162.00

 

 

Matching

shares

Extended Management Board 

on March 6, 2025

55,338 shares

(maximum of 

potential shares granted)

CHF 180.50

January 1, 2025

to December 31, 2027

Three years of service and

­ performance target

Other management 

on May 2, 2025

11,047 shares

(maximum of 

potential shares granted)

CHF 156.00

 
  1. Vested shares are blocked until the end of the performance period.

Number of shares outstanding at December 31:

 

2024

2025

Employee shares

 

 

Balance at January 1

95,040

 106,654 

Granted

46,480

 93,191 

Deblocked and available to the participants

(32,435)

 (11,038) 

Forfeited 

(2,431)

 (48,484) 

 

 

 

Balance at December 31

106,654

 140,323 

 

 

 

Thereof vested and transferred, but blocked until the end of the performance period

23,980

 39,748 

The expenses, recognized in profit or loss, are calculated as follows:

The fair value of services received in return for the shares granted is measured by reference to the shares vested multiplied by their fair value at grant date (measurement date). The fair value at grant represents the market value of one Tecan share adjusted for expected dividend payments during the vesting period. Changes in the fair value of the shares after the grant date do not change the fair value of the services received.

The number of matching shares is determined based on the following formula: number of shares from initial grant that qualify for matching shares, multiplied by the matching share factor. The matching share factor is dependent on the achievement of specific economic profit targets. In any case, the matching share factor will not be lower than 0.0 and not higher than 2.5.

Number of matching shares expected to vest on December 31, 2025:

Plan  

Total base

shares1

Matching share

factor applied

Matching shares

expected to vest2

PSMP 2023  

9,962

0.0

0

PSMP 2024  

10,016

0.0

0

PSMP 2025  

20,252

2.5

50,630

  1. Only shares that qualify for matching shares.
  2. Not adjusted for expected fluctuation.

9.4.2.2 OTHER SHARE PLANS

The terms and conditions of the outstanding grants are as follows, whereby all shares are delivered physically (equity-settled) and free of charge:

 

Plan

Employees entitled/grant date

Number of shares 
granted

Fair value at grant

Vesting period

Vesting conditions

Share plan 2025/26 – Board of Directors (BoD)

Annual grant

Board of Directors

on April 10, 2025

1,940 shares

CHF 137.50

Graded vesting 
from May 1, 2025 
to April 30, 2026

One year of service

9.4.3 TOTAL EXPENSES RECOGNIZED

 

2024

2025

CHF 1,000

 

 

Expenses arising from equity-settled share option plans

1,259

 1,178 

Expenses arising from equity-settled performance share matching plans

2,437

 1,614 

Expenses arising from equity-settled other share plans

391

 275 

 

 

 

Total expenses recognized, excluding social security costs

4,087

 3,067 

 

 

 

Corresponding current and deferred income taxes recognized directly in equity

(354)

2

 

 

 

Total amount reported in consolidated statement of changes in equity

3,733

 3,069 

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