Content and determination of compensation and share option plans
The members of the Board of Directors receive fixed annual compensation for their work, specifically for preparing and participating in meetings and serving on committees. The Compensation Committee determines the amount of the annual compensation once a year.

The members of Group Management are compensated taking their duties, performance and the development of the business into account. In addition to a fixed annual sum, their compensation contains a variable share of 24 to 40 percent of the salary, which depends mainly on the operating result. Based on proposals made by the Compensation Committee, the Board of Directors determines the amount of the Chief Executive Officer’s compensation once a year. The compensation of the other members of the Group Management is set once a year based on proposals made by the Compensation Committee in collaboration with the Chief Executive Officer.

In the second half of fiscal 2008/2009, the cost of compensation was significantly reduced as a result of a salary waiver at all management levels. The amount of the waiver was scaled between 10 percent for the Board of Directors and Group Management and 4 percent for lower middle managers.

Since October 1, 1998, options to the value of CHF 500,000 to CHF 900,000 on the purchase of registered shares in Schaffner Holding AG have been granted to key management members and the members of the Board of Directors every year under the Schaffner Share Option Plan. The options are allotted by the Board of Directors and are based on appraisals of individual performance. For further information, see note 20, page 32 of the notes to the consolidated financial statements.