10 Employee benefits
10.1 Number of employees
FTE1 | 2012 | 2013 |
|---|---|---|
Employees – year-end | 1,185 | 1,184 |
Employees – average | 1,163 | 1,190 |
1 FTE = Full time equivalent
10.2 Personnel expenses
Personnel expenses include the following:
2012 | 2013 | |
|---|---|---|
CHF 1,000 | Restated | |
Salaries and wages | 111,534 | 113,203 |
Social security | 14,145 | 15,134 |
Post-employment benefits based on | ||
Defined contribution plans | 1,245 | 1,321 |
Defined benefit plans | 5,204 | 6,364 |
Share-based payment | 3,035 | 2,359 |
Other personnel expenses | 3,299 | 3,184 |
Total personnel expenses | 138,462 | 141,565 |
10.3 Liability for post-employment benefits: defined benefit plans (IAS 19)
10.3.1 Characteristics of defined benefit plans and risks associated with them
2012 Restated | 2013 | |||||
|---|---|---|---|---|---|---|
Swiss plans | International plans | Total | Swiss plans | International | Total | |
Number of plans | 4 | 3 | 7 | 4 | 3 | 7 |
Actives |
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Number | 448 | 109 | 557 | 451 | 109 | 560 |
Defined benefit obligation (CHF 1,000) | 77,176 | 4,027 | 81,203 | 78,395 | 4,346 | 82,741 |
Weighted average duration in years | 21.2 | 11.5 | 20.7 | 20.2 | 11.1 | 19.7 |
Retirees | ||||||
Number | 11 | — | 11 | 17 | — | 17 |
Defined benefit obligation (CHF 1,000) | 322 | — | 322 | 423 | — | 423 |
Weighted average duration in years | 15.3 | — | 15.3 | 14.4 | — | 14.4 |
Total | ||||||
Number | 459 | 109 | 568 | 468 | 109 | 577 |
Defined benefit obligation (CHF 1,000) | 77,498 | 4,027 | 81,525 | 78,818 | 4,346 | 83,164 |
Weighted average duration in years | 20.2 | 11.5 | 19.8 | 19.5 | 11.1 | 19.1 |
The Group expects to contribute CHF 5.1 million to its defined benefit plans in 2014.
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, 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 guarantee of a minimum interest credit on the savings and fixed conversion rates at retirement. Disability and death benefits are defined as percentage of the insured salary.
Regulatory framework The plan provides benefits based on the LPP/BVG law, which stipulates the minimum requirement of the mandatory employer’s sponsored pension plan in Switzerland. In particular, annual salary up to CHF 84’240 (amount in 2013) must be insured, the financing is age-related with contribution rates in per cent of pensionable salary increasing with age from 7% to 18%. The conversion rate to calculate the annuity based on the accrued savings capital is 6.8% at normal retirement age (65 for men and 64 for women). The plan must be fully funded under LPP/BVG law on a static basis at all times, In case of underfunding, recovery measures must be taken, such as additional financing from the employer or from the employer and employees, or reduction of benefits or a combination of both.
Specific plan rules The saving credits for the retirement benefits are defined in percentage of the insured salary. The saving credits for the part of the annual salary between CHF 24’570 and CHF 84’240 are age dependent and amount to 8% to 19%. The saving credits for the part of the annual salary above CHF 84’240 amount to 14% for the employees and to 18% or 19% for the members of the management. The conversion rate for the mandatory part of savings capital amounts to 6.8% at normal retirement age. For the exceeding part of the savings capital, the conversion rate is defined by the board of trustees. The annual disability pension amounts to 70% of the insured salary, the annual partner’s pension to 50% of the insured salary or to 60% of the current retirement pension. In case of death before retirement an additional lump-sum of 200% of the insured salary is paid.
Governance of the plan The companies are affiliated to the collective foundation Swiss Life Collective BVG Foundation. The collective foundation is a separate legal entity. The foundation is responsible for the governance of the plan; the foundation’s board of trustees is composed of an equal number of representatives from the employers and employees chosen from all affiliated companies. The foundation has set up investment guidelines, defining in particular the strategic allocation with margins. Additionally, there are pension committees for each affiliated company composed of an equal number of representatives from the company and the employees. The pension committee is responsible for the set-up of the plan benefits.
Risks to which the plan exposes the Group The plan provider Swiss Life Collective BVG Foundation has reinsured the risks disability, death, longevity and the investment risk with Swiss Life Ltd. Therefore, the only risks for the Group are that the Swiss Life Collective BVG Foundation terminates the affiliation contract or increases the premiums.
Plan amendments, settlements or curtailments There were no plan amendments, settlements or curtailments during the financial years 2012 and 2013. |
Austria (International plans)
| Long-service leave benefits
| Unfunded | Nature of the benefits provided The severance-payments plans of Tecan Austria GmbH and Tecan Sales Austria GmbH guarantee a one-time lump sum payment, once the employee leaves the company. The plan was closed for new members at December 31, 2002. Plan participants are all employees with at least 3 years of service and an entry-date before January 1, 2003. The membership to this plan is mandatory.
Regulatory framework The plan provides benefits according to Austrian law (AngG 23 and 23a) which stipulates benefits in case of retirement, death (50%), disability or termination of employment. Vesting is after 3 years of service, whereas all rights forfeit in the case of voluntary termination. The level of the benefits depends on the period of service in the company and amounts to a lump-sum payment of 2 monthly salaries after 3 years of service up to 12 monthly salaries after 25 years of service. The monthly salary is defined as twelfth part of the total annual salary of the last 12 months.
Governance of the plan Only the company (employer) is responsible for the governance of the plan.
Risks to which the plan exposes the Group The plan is exposed to the inflation risk as well as to the risk of salary increases.
Plan amendments, settlements or curtailments There were no plan amendments, settlements or curtailments during the financial years 2012 and 2013. |
Other | Retirement benefits | Unfunded | There are two minor retirement benefit plans in Tecan Japan Co., Ltd. and Tecan Italia S.r.l. for only a limited number of participants. |
10.3.2 Amounts recognized in the financial statements
The amounts recognized in the balance sheet are as follows:
2012 January 1 | 2012 December 31 | 2013 December 31 | |
|---|---|---|---|
CHF 1,000 | Restated | Restated | |
Swiss plans | |||
Present value of obligations arising from retirement benefit plans | 63,722 | 77,498 | 78,818 |
Fair value of plan assets | (59,199) | (63,921) | (66,391) |
Deficit Swiss plans (funded) | 4,523 | 13,577 | 12,427 |
International plans |
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Present value of obligations arising from long-service leave benefit plans | 2,148 | 2,980 | 3,319 |
Present value of obligations arising from retirement benefit plans | 1,045 | 1,047 | 1,027 |
Deficit International plans (unfunded) | 3,193 | 4,027 | 4,346 |
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Net liability at January 1/December 31 | 7,716 | 17,604 | 16,773 |
The components of defined benefit cost are as follows:
2012 Restated | 2013 | |||||
|---|---|---|---|---|---|---|
CHF 1,000 | Swiss plans | International plans | Total | Swiss plans | International plans | Total |
Current service cost | 4,924 | 280 | 5,204 | 6,053 | 311 | 6,364 |
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Defined benefit cost included in operating result | 4,924 | 280 | 5,204 | 6,053 | 311 | 6,364 |
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Net interest cost on liability for post-employment benefits | 38 | 114 | 152 | 217 | 125 | 342 |
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Defined benefit cost included in finance cost | 38 | 114 | 152 | 217 | 125 | 342 |
Total defined benefit cost included in profit or loss | 4,962 | 394 | 5,356 | 6,270 | 426 | 6,706 |
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Actuarial (gains)/losses on obligations |
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Changes in demographic assumptions | 5,451 | — | 5,451 | – | (4) | (4) |
Changes in financial assumptions | 3,727 | — | 3,727 | (2,590) | 144 | (2,448) |
Experience adjustments | (87) | 675 | 588 | (434) | (66) | (500) |
Return on plan assets (excluding interest income) | (277) | — | (277) | 435 | — | 435 |
Remeasurement loss/(gain), included in other comprehensive income | 8,814 | 675 | 9,489 | (2,591) | 74 | (2,517) |
Translation differences, included in other comprehensive income | — | (138) | (138) | — | (111) | (111) |
Total defined benefit cost recognized | 13,776 | 931 | 14,707 | 3,679 | 399 | 4,078 |
Changes in the present value of the defined benefit obligation are as follows:
2012 Restated | 2013 | |||||
|---|---|---|---|---|---|---|
CHF 1,000 | Swiss plans | International plans | Total | Swiss plans | International plans | Total |
Balance at January 1 | 63,722 | 3,193 | 66,915 | 77,498 | 4,027 | 81,525 |
Current service cost | 4,924 | 280 | 5,204 | 6,053 | 311 | 6,364 |
Employee contributions | 3,143 | — | 3,143 | 3,215 | — | 3,215 |
Insurance premiums | (1,674) | — | (1,674) | (1,714) | — | (1,714) |
Benefits paid | (3,428) | (97) | (3,525) | (4,818) | (80) | (4,898) |
Interest expense | 1,720 | 114 | 1,834 | 1,610 | 125 | 1,735 |
Actuarial losses/(gains) | 9,091 | 675 | 9,766 | (3,026) | — | (2,925) |
Translation differences | — | (138) | (138) | — | (111) | (111) |
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Balance at December 31 | 77,498 | 4,027 | 81,525 | 78,818 | 4,346 | 83,164 |
Changes in the fair value of plan assets are as follows:
2012 Restated | 2013 | |||||
|---|---|---|---|---|---|---|
CHF 1,000 | Swiss plans | International plans | Total | Swiss plans | International plans | Total |
Balance at January 1 | 59,199 | — | 59,199 | 63,921 | — | 63,921 |
Employer contributions | 4,722 | — | 4,722 | 4,829 | — | 4,829 |
Employee contributions | 3,143 | — | 3,143 | 3,215 | — | 3,215 |
Insurance premiums | (1,674) | — | (1,674) | (1,714) | — | (1,714) |
Benefits paid | (3,428) | — | (3,428) | (4,818) | — | (4,818) |
Interest income | 1,682 | — | 1,682 | 1,393 | — | 1,393 |
Return on plan assets (excluding interest income) | 277 | — | 277 | (435) | — | (435) |
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Balance at December 31 | 63,921 | — | 63,921 | 66,391 | — | 66,391 |
The investment risk is reinsured. Therefore the plan assets represent a receivable from the life insurance company.
10.3.3 Actuarial assumptions and sensitivity analysis
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
2012 | 2013 | |||
|---|---|---|---|---|
| Swiss plans | International plans | Swiss plans | International plans |
Discount rates | 2.10% | 3.11% | 2.30% | 2.96% |
Rate of future salary increases | 1.75% | 2.96% | 1.75% | 2.99% |
Rate of future pension increases | 0.25% | 0.00% | 0.25% | 0.00% |
Rates for the projection of savings capital | 1.90% | n. a. | 2.00% | n. a. |
Mortality table | BVG 2010 GT | Various | BVG 2010 GT | Various |
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:
2013 | ||||
|---|---|---|---|---|
| Change in actuarial assumptions | Swiss plans | International plans | Total |
Discount rates | – 25 basis points | 3,873 | 119 | 3,992 |
| + 25 basis points | (3,433) | (115) | (3,548) |
Rate of future salary increases | – 25 basis points | (832) | (111) | (943) |
+ 25 basis points | 857 | 114 | 971 | |
Life expectancy | – 1 year | (1,427) | (13) | (1,440) |
+ 1 year | 1,359 | 13 | 1,372 |
(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 taken into account.
10.4 Employee participation plans – share-based payment (IFRS 2)
10.4.1 Employee share option plans
The terms and conditions of the outstanding grants are as follows, whereby all options are settled by physical delivery of shares:
Arrangement | Employees entitled / grant date | Number of | Vesting conditions | Contractual life | Expiry date |
|---|---|---|---|---|---|
Plan 2008 B (base plan) Equity-settled | Options granted to members of Board of Directors, Management Board and management level 3 and 4 on December 5, 2007 | 41,735 options CHF 69.00 | Vesting period completed | 7 years | December 5, 2014 |
Plan 2009 B (base plan) Equity-settled | Options granted to members of Board of Directors, Management Board and management level 3 and 4 on December 8, 2008 | 81,180 options CHF 39.70 | Vesting period completed | 7 years | December 8, 2015 |
Plan 2010 Equity-settled | Options granted to members of Board of Directors, Management Board and management level 3 and 4 on November 23, 2009 | 63,492 options CHF 70.00 | Vesting period completed | 7 years | November 23, 2016 |
Plan 2011 Equity-settled | Options granted to members of Board of Directors and management level 3 and 4 on November 2, 2010 | 52,950 options CHF 69.00 | Vesting period completed | 7 years | November 2, 2017 |
Plan 2012 Equity-settled | Options granted to members of management level 3 and 4 on November 2, 2011 | 59,998 options CHF 57.20 | One / two / three years of | 7 years | November 2, 2018 |
Plan 2013 Equity-settled | Options granted to members of management level 3 and 4 on November 2, 2012 | 40,953 options CHF 69.60 | One / two / three years of | 7 years | November 2, 2019 |
Plan 2014 Equity-settled | Options granted to members of management level 3 and 4 on November 2, 2013 | 35,112 options CHF 95.00 | One / two / three years of | 7 years | November 2, 2020 |
All share options grant the right to purchase one Tecan share per option. In 2002 and 2003 the employees from the USA received stock appreciation rights (SARs) with the same treatment and same conditions as share options. The arrangements were classified as cash-settled plans and ended in 2012 and 2013 respectively.
The number and weighted average exercise prices of share options and SARs are as follows:
2012 | 2013 | |||||||
|---|---|---|---|---|---|---|---|---|
Weighted average | Number | Weighted average | Number | |||||
Options | SARs | Options | SARs | Options | SARs | Options | SARs | |
Balance at January 1 | 63.20 | 87.67 | 400,666 | 23,440 | 62.05 | 48.40 | 260,689 | 4,080 |
Granted | 69.60 | – | 40,953 | – | 95.00 | – | 33,184 | – |
Exercised | 55.43 | 48.80 | (54,270) | (1,170) | 60.96 | 48.80 | (131,529) | (2,797) |
Forfeited | 42.65 | – | (59,846) | – | 64.34 | – | (4,504) | – |
Expired | 96.33 | 99.00 | (66,814) | (18,190) | 60.33 | 48.80 | (9,136) | (1,283) |
Balance at December 31 | 62.05 | 48.40 | 260,689 | 4,080 | 70.41 | – | 148,704 | – |
The weighted average share price at the dates of exercise was CHF 70.20 in 2012 and CHF 89.07 in 2013.
Outstanding share options and SARs at the end of the period in detail:
2012 | 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Exercise price | Remaining contractual | Number | Remaining contractual | Number | |||||
Options | SARs | Options | SARs | Options | SARs | Options | SARs | ||
Plan 2003 | 48.4 | 0.9 | 0.9 | 26,321 | 4,080 | – | – | – | – |
Plan 2007 B | 70.0 | 0.9 | – | 11,148 | – | – | – | – | – |
Plan 2007 P | 70.0 | 0.9 | – | 3,971 | – | – | – | – | – |
Plan 2008 B | 69.0 | 1.9 | – | 20,608 | – | 0.9 | – | 7,230 | – |
Plan 2009 B | 39.7 | 2.9 | – | 24,699 | – | 1.9 | – | 11,065 | – |
Plan 2010 | 70.0 | 3.9 | – | 39,741 | – | 2.9 | – | 15,096 | – |
Plan 2011 | 69.0 | 4.8 | – | 40,335 | – | 3.8 | – | 18,466 | – |
Plan 2012 | 57.2 | 5.8 | – | 52,913 | – | 4.8 | – | 30,777 | – |
Plan 2013 | 69.6 | 6.8 | – | 40,953 | – | 5.8 | – | 32,886 | – |
Plan 2014 | 95.0 | – | – | – | – | 6.8 | – | 33,184 | – |
Balance at December 31 | 4.2 | 0.9 | 260,689 | 4,080 | 3.2 | – | 148,704 | – | |
Exercisable at period-end | 166,476 | 4,080 | 71,149 | – | |||||
All outstanding options are fully covered by the conditional share capital.
The expenses, recognized in profit or loss, are calculated as follows:
Equity-settled share-based payment
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 binominal 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):
Grant | Share price | Exercise price | Expected | Option life | Expected | Risk-free | Fair value |
|---|---|---|---|---|---|---|---|
Plan 2012 | CHF 57.20 | CHF 57.20 | 33.19% | 7.0 years | 2.32% | 1.11% | CHF 16.29 |
Plan 2013 | CHF 69.60 | CHF 69.60 | 31.79% | 7.0 years | 1.91% | 0.57% | CHF 19.13 |
Plan 2014 | CHF 95.00 | CHF 95.00 | 22.75% | 7.0 years | 1.61% | 1.03% | CHF 19.72 |
1 Historic volatility with an underlying period that depends on the option life
Data source: Bloomberg
Cash-settled share-based payment
The fair value of services received in return for the SARs granted is measured by reference to the SARs vested multiplied by their fair value at grant date (measurement date). The estimate of the fair value is based on a binominal model. Changes in the fair value of the SARs after the grant date have an impact on the provision for cash-settled share-based payment and are posted to the financial result.
10.4.2 Employee share plans
10.4.2.1 Performance share matching plan (PSMP)
The terms and conditions of the grants are as follows, whereby all shares are delivered physically and free of charge (except for mandatory investment):
Arrangement | Employees entitled / grant date | Number of shares granted | Fair value at grant | Vesting period | Vesting conditions |
|---|---|---|---|---|---|
Performance share matching plan (PSMP) 2011 – Board of Directors (BoD) | |||||
Initial grant | Board of Directors on December 13, 2011 | 3,232 shares | CHF 61.95 | Graded vesting from May 1, 2011 to | Three years of service |
Matching shares | Board of Directors on December 13, 2011 | 4,040 shares (maximum of potential shares granted) | CHF 58.95 | May 1, 2011 to | Three years of |
Performance share matching plan (PSMP) 2011 – extended Management Board (eMB) | |||||
Initial grant | Extended Management Board on February 28, 2011 | 22,114 shares | CHF 78.95 | Graded vesting from January 1, 2011 to December 31, 20131 | Three years of service |
Mandatory investment | Extended Management Board on February 28, 2011 | 264 shares | CHF 78.95 | Immediate vesting1 | None |
Matching shares | Extended Management Board on February 28, 2011 | 58,040 shares (maximum of potential shares granted) | CHF 75.95 | January 1, 2011 to December 31, 2013 | Three years of service and performance target |
Performance share matching plan (PSMP) 2012 – Board of Directors (BoD) | |||||
Initial grant | Board of Directors on March 21, 2012 | 2,959 shares | CHF 65.75 | Graded vesting from May 1, 2012 to April 30, 20151 | Three years of service |
Matching shares | Board of Directors on March 21, 2012 | 3,699 shares (maximum of potential shares granted) | CHF 62.00 | May 1, 2012 to April 30, 2015 | Three years of service and performance target |
Performance share matching plan (PSMP) 2012 – extended Management Board (eMB) | |||||
Initial grant | Extended Management Board on March 21, 2012 | 29,498 shares | CHF 65.75 | Graded vesting from January 1, 2012 to December 31, 20141 | Three years of service |
Mandatory investment Annual bonus 2011 in excess of 100% of the target cash bonus was granted in form of shares | Extended Management Board on March 21, 2012 | 806 shares | CHF 65.75 | Immediate vesting1 | None |
Matching shares | Extended Management Board on March 21, 2012 | 85,258 shares (maximum of potential shares granted) | CHF 62.00 | January 1, 2012 to December 31, 2014 | Three years of service and performance target |
Performance share matching plan (PSMP) 2013 – extended Management Board (eMB) | |||||
Initial grant | Extended Management Board on April 18, 2013 | 18,326 shares | CHF 83.50 | Graded vesting from January 1, 2013 to December 31, 20151 | Three years of service |
Matching shares | Extended Management Board on April 18, 2013 | 52,108 shares (maximum of potential shares granted) | CHF 80.50 | January 1, 2013 to December 31, 2015 | Three years of service and performance target |
Performance share matching plan (PSMP) 2013 – other Management (oM) | |||||
Initial grant | Other management on September 1, 2013 | 2,616 shares | CHF 95.25 | Graded vesting from January 1, 2013 to December 31, 20151 | Three years of service |
Matching shares | Other management on September 1, 2013 | 6,540 shares (maximum of potential shares granted) | CHF 95.25 | January 1, 2013 to December 31, 2015 | Three years of service and performance target |
1 Vested shares are blocked until the end of the performance period.
In addition to the grants listed above, the Management Board was entitled to invest voluntarily up to 50% of its target cash bonus 2010/2011/2012 and the portion of the realized cash bonus in excess of 100% of its target cash bonus 2012 in Tecan shares at market prices (average share price from January 1 to April 30, 2011/2012/2013). The voluntary investment could not exceed the realized cash bonus. The shares are blocked until the end of the performance period and are included in the calculation of the matching shares.
Number of shares outstanding at December 31:
Shares (excluding voluntary investments) | 2012 | 2013 |
|---|---|---|
Balance at January 1 | 189,323 | 220,438 |
Granted | 122,220 | 79,590 |
De-blocked and transferred to employee | (30,953) | (17,866) |
Forfeited | (60,152) | (64,710) |
Balance at December 31 | 220,438 | 217,452 |
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Thereof vested, but blocked until the end of the performance period | 29,198 | 33,485 |
The expenses, recognized in the consolidated statement of 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.
Number of matching shares expected to vest at December 31:
Year/plan | Initial grant1 | Mandatory investment1 | Voluntary investment1 | Total base shares | Matching share factor applied | Matching shares |
|---|---|---|---|---|---|---|
2012 | ||||||
PSMP 2010 – eMB | 19,442 | 887 | 2,169 | 22,498 | 0.00 | – |
PSMP 2011 – BoD | 2,962 | n/a | n/a | 2,962 | 0.18 | 533 |
PSMP 2011 – eMB | 15,317 | 153 | 141 | 15,611 | 0.36 | 5,620 |
PSMP 2012 – BoD | 2,959 | n/a | n/a | 2,959 | 1.25 | 3,699 |
PSMP 2012 – eMB | 23,720 | 682 | 2,037 | 26,439 | 2.50 | 66,097 |
2013 | ||||||
PSMP 2011 – BoD | 2,828 | n/a | n/a | 2,828 | 0.00 | – |
PSMP 2011 – eMB | 14,630 | 143 | 121 | 14,894 | 0.00 | – |
PSMP 2012 – BoD | 2,712 | n/a | n/a | 2,712 | 0.00 | – |
PSMP 2012 – eMB | 21,388 | 536 | 2,037 | 23,961 | 0.00 | – |
PSMP 2013 – eMB | 18,326 | n/a | 2,515 | 20,843 | 2.50 | 52,108 |
PSMP 2013 – oM | 2,616 | n/a | n/a | 2,616 | 2.50 | 6,540 |
1 Only shares that qualify for matching shares
2 Not adjusted for expected fluctuation
The number of matching shares is determined based on the following formula: number of shares from initial grant plus number of shares from mandatory and voluntary investments (if applicable) times 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 1.25 (Board of Directors) and 2.5 (extended Management Board and other Management) respectively.
10.4.2.2 Other share plans
The terms and conditions of the outstanding grants are as follows, whereby all shares are delivered physically and free of charge:
Additional grant 2010 – CEO
Arrangement | Employees entitled / grant date | Number of shares granted | Fair value atgrant | Vesting period | Vesting conditions |
|---|---|---|---|---|---|
Additional grant1 | CEO | 20,000 shares | CHF 77.00 – CHF 73.00 | March 1, 2010 respectively | Two/ five years of service for 50 %/ 50 % of shares |
1 The additional grant is non-recurring.
The second part of the additional grant, comprising of 10,000 shares, has vested pro rata. The resulting 2,222 shares are blocked until March 1, 2015.
Share plan 2013 – Board of Directors (BoD)
Arrangement | Employees entitled / grant date | Number of shares granted | Fair value at grant | Vesting period | Vesting conditions |
|---|---|---|---|---|---|
Annual grant | Board of Directors on December 10, 2013 | 3,853 shares | CHF 100.00 | Graded vesting from May 1, 2013 | One year of service |
10.4.3 Total expenses recognized
CHF 1,000 | 2012 | 2013 |
|---|---|---|
Expenses arising from equity-settled share option plans | 412 | 745 |
Expenses arising from performance share matching plans | 2,456 | 1,258 |
Expenses arising from other share plans | 167 | 356 |
Total personnel expenses recognized with impact on operating profit | 3,035 | 2,359 |
Effect of changes in the fair value of SARs with impact on the financial result | 37 | (4) |
Total expenses | 3,072 | 2,355 |
The provision for cash-settled share-based payment transactions amounts to CHF 0.0 million at December 31, 2013 (2012: CHF 0.1 million, see note 21).