Annual Report 2010/11 - Sonova

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28. Related party transactions
1,000 CHF 2010/11 2009/10 2010/11 2009/10 2010/11 2009/10
Management
Board
Board of
Directors
Short-term employee benefits 8,817 8,518 1,971 1,342 10,788 9,860
Share-based payments 4,289 4,889 1,922 1,930 6,211 6,819
Total 13,106 13,407 3,893 3,272 16,999 16,679
The total compensation to the Management Board for the reporting period 2010/11, as shown above, relates to eight current
members and three members that left the Management Board during the period. During the financial year 2010/11, two
members joined the Management Board. The total compensation to the Management Board for 2009/10 related to nine then
current members and one member that retired from the Management Board during the period.
The total compensation to the Board of Directors for the reporting period 2010/11, as shown above, relates to eight current
members (previous year seven members).
In addition to the ordinary compensation of the Management Board 2010/11 (for further details refer to ‘Compensation
to the Management Board’ in Sonova Holding AG’s financial statements 2010/11), the short-term employee benefits include
the contractual compensation in connection with the resignation of Dr Valentin Chapero Rueda and Oliver Walker in the
amount of CHF 2.1 million payable in the financial year 2011/12.
There is a consultancy agreement between John J. Zei, a member of the Board of Directors and the Group, for specific
assignments on behalf of the Group which are beyond his role as a member of the Board of Directors. In the reporting
period 2010/11, a total amount of CHF 72,644 was paid by the Group for the consultancy services provided under this
contract.
In the previous year 2009/10, the Group finished the construction of a new high-technology manufacturing center on a site
next to the Group’s headquarters in Stäfa, Switzerland. The factory was built by the general contractor R-Estate AG. The
land belonged to ARim AG and has been purchased by the Group. Both R-Estate AG and ARim AG are fully owned by Andy
Rihs, a member of the Board of Directors of Sonova Holding AG. The terms for purchasing the land and constructing the
factory are identical to those that would have been stipulated in an agreement with an independent third party. The purchase
price for the land was CHF 5.2 million, all of which was paid to ARim AG in the financial year 2009/10 and 2008/09.
The amount paid to R-Estate AG for the construction of the factory (excluding interior work) was CHF 20.1 million, of
which CHF 0.6 million have been paid in the reporting period (CHF 19.5 million have been paid in the previous financial
years). Effective October 23, 2007 the Group entered into a lease contract with ARim AG (annual lease payment of CHF 0.3
million). In addition, as of November 2010, the Group entered into another lease contract with ARim AG (annual lease
payment of CHF 0.2 million).
For additional information regarding transactions with associates refer to Note 17 and Note 18.
Transactions between the Group and the various post-employment benefit plans for the employees of the Group are
described in Note 29.
Further information in accordance with Swiss law relating to remuneration and ownership of shares and options of the
Board of Directors and the Management Board can be found in Note 2.5 of the financial statements of Sonova Holding AG.
Total