Proxy Advisors

The Proxy Advisors become increasingly important in the dialogue with your shareholders and investors. Proxy Advisors analyze your compensation report, and provide voting recommendation for all the items of the Annual General Meeting, including the Say-on-Pay vote.

Therefore, it is important to actively management the relationship with the Proxy Advisors and to understand how they think about your remuneration programs. Some Proxy Advisors have published guidelines about Corporate Governance and Executive Compensation, which should be taken into consideration when remuneration programs are reviewed and/or redesigned and for the compensation disclosure in the compensation report.

International proxy advisors:

ISS is a US-based Proxy Advisor that is of high importance for any multinational company and it publishes a European policy guideline. Starting with the 2018 proxy season, ISS will use their pay-for-performance alignment methodology to assess the link between pay and performance of large European companies.

Glass Lewis is also an important Proxy Advisor and has also published a European policy guideline, as well as a specific Swiss policy guideline.

Swiss proxy advisors:

Ethos is a major Proxy Advisor in Switzerland. Ethos has published Corporate Governance Principles, which contains principles around the structure of compensation programs and the disclosure of compensation in the Compensation Report. Ethos also publishes their voting positions a few days before the Annual General Meeting of the company in question.

zRating is another Proxy Advisor in Switzerland and also issued a voting guideline. zRating publishes their voting recommendations prior the Annual General Meetings, as well as a yearly Corporate Governance study.