Cockpit
Statements
The Obermatt Bonus Index is fair for shareholders
The Bonus Index forms the basis of bonus plans which are fair for shareholders. It is:
Sustainable - rewards sustainable management practices
In the long-run, the Obermatt Bonus Index rewards sustainable performance because it recommends bonus levels based on the number of peers a company outperforms – the only durable criteria for sustainability. This is fair, as why should managers receive bonuses for reaching their own budgets that can continually adapt to a deteriorating performance?
Aligned - the higher the outperformance, the higher the bonus
Fairer for shareholders, the Obermatt Bonus Index compensates only the operating performance and not the influence of economic cycles or for example raw material prices. Thus, it motivates for relative growth in operating performance. This is fair, as why should management be compensated differently than shareholders, which are also evaluated relative to an index?
Independent - provided according to Obermatt's Declaration of Independence
The Obermatt Bonus Index is fairer than negotiated bonus targets, because it is objectively and transparently defined by a neutral third parry (declaration of independence). This is fair, as why shouldn't management have to disclose their compensation systems when they are ultimately paid by the company's shareholders?
It is fair for executives, too
„Last but not least“ – the Bonus Index is also fair for executives and can be rightly demanded by active investors.