Annual Report 2010/11 - Sonova

2.3 Significant shareholders
FINANCIAL STATEmENTS OF SONOVA HOLDING AG 153
At year-end, the following significant shareholders were listed in the share register (with shareholdings in excess of 3% of
the issued share capital):
31.3.2011 31.3.2010
Beda Diethelm 9.99% 10.19%
Andy Rihs 9.49% 10.68%
Chase Nominees Ltd. 1) 8.19% 10.44%
Hans-Ueli Rihs 5.70% 6.76%
Nortrust Nominees Ltd. 1) 3.10%
Registered shareholders with less than 3% 32.07% 35.70%
Not registered 31.46% 26.23%
1) Registered without voting rights.
2.4 Risk assessment
Sonova Holding AG, as the ultimate parent company of the Sonova Group, faces the same risks as the ones identified at
Group level. Therefore, please refer to the disclosure of the Group-wide risk management procedures as described in Note
24 of the Group’s consolidated financial statements.
2.5 Compensation and shareholdings
Content and method of determining the compensation and the shareholding programs
The compensation principle of Sonova Group is to provide simple, transparent, performance-driven, and competitive
compensation to all employees including executive management.
The Nomination and Compensation Committee is responsible for reviewing and defining the structure and amount of
compensation for the management Board and the Board of Directors, taking into account salary comparisons and publicly
accessible information.
Three elements are relevant for the Group: a fixed base salary, a variable compensation component that revolves around
the respective financial year, and, for selected executive managers and employees, a long-term variable compensation
component.
Fixed salary component
The fixed base salary gives each employee a regular and predictable salary that does not depend on the development of
the Sonova Group’s business. The salary level is based on the functional profile, the market situation, and the employee’s
skills. In its turn, salary progression depends primarily on the employee’s individual performance, the market value, and
the economic climate.
Variable salary component
The variable salary is an integral element of the target income. The split between the fixed and variable salary components
is a function of the job profile and respective management level. The targets for achieving the variable salary component
are mutually defined and agreed upon in consultation with the employees at the beginning of the financial year. The variable
salary component is generally 10% of the target salary for employees and 10–30% for managers. If the employee actually
reaches less than 80% of the stipulated target, no variable salary component is paid out. If the targets are exceeded, the
variable salary component may be a maximum of double the original amount. The amount paid out depends on the
employee’s actual achievement of objectives by the end of the financial year and also on the overall performance of the
Sonova Group or the respective unit.