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Proxy advisor opposes Holcim Chairman's $58 Million compensation package

Ethos, a proxy advisor, has urged Holcim shareholders not to accept the company's proposed remuneration. It said that Jan Jenisch would be the highest paid manager in Swiss blue-chip firms by 2024 if he received the estimated compensation of 48 million Swiss Francs ($58 million).

Ethos calculated Jenisch's realised compensation based on his share options in 2020.

Since the announcement that the company intends to spin off its North American business by January 2024, these options have gained significant value.

Vincent Kaufmann (CEO of Ethos Foundation) said that Jan Jenisch's variable compensation for 2024 is unacceptable. It is 25 times the base salary he received as Holcim CEO. He called on the board to eliminate the option plan.

Ethos reported that Holcim is one of only a few Swiss companies still granting share options with a leveraged effect.

Holcim's response to Ethos' misleading framing Jenisch's compensation was given by Holcim when asked for comment.

Holcim's spokesperson stated that Ethos had misrepresented the value of the option scheme, as it was based on a rolling five-year program reflecting record performance for a period of five years, and not an annual compensation.

According to Ethos, share options that were worth 890'001 Swiss Francs in 2020 are now valued at more than 36,6 million Swiss Francs.

The proxy advisor stated that the package totaled 48 million Swiss francs when you add up Jenisch's compensation for his four months in the CEO role last year, his chairman compensation for the eight remaining months of 2024 and the other shares awards.

This figure is dwarfed by the 19.2 million Swiss francs that Novartis CEO Vas Nairsimhan received in compensation, which prompted criticism at its AGM. $1 = 0.8249 Swiss Francs (Reporting and writing by Oliver Hirt; editing by John Revill, David Evans, and Ariane Luthi)

(source: Reuters)