Pfäffikon SZ, March 29, 2007 - In the wake of various misleading media reports claiming that the annual salary of CEO Thomas Limberger was in the region of CHF 26 million, Oerlikon would like to clarify the situation.
As Oerlikon presented at its media and analysts' conference on March 27, 2007, CEO Thomas Limberger's annual salary for 2006 comprised:
- a base salary: CHF 1.954.982
- 5.000 shares granted on January 1, 2006; value on the grant date: CHF 990.000
- 40.000 options granted on January 1, 2006 with a 3-year vesting period and subsequent 1-year exercise period (with the proviso that employment within the company is maintained); value on the grant date: CHF 899.600.
Any media reports stating that Thomas Limberger received, in his function as CEO, in the region of CHF 26 million in 2006 are therefore incorrect. Oerlikon's expenditure consisted of CHF 1.889.600 for shares and options plus Thomas Limberger's base salary of CHF 1.954.982. The options granted can be exercised at the earliest on January 1, 2009, with the proviso that employment within the company is maintained. Any value assigned to them is therefore at this stage purely hypothetical.
Despite the fact that the options cannot yet be exercised and even though the extent of the price increase could not be foreseen at the beginning of 2006, Oerlikon's CEO Thomas Limberger is determined to quell any accusations of excessive earnings. He hence asked the Board of Directors yesterday to take back the 40.000 options granted to him. The Board of Directors has agreed to his request and substituted the options with 3.000 shares with a total value of CHF 2.160.000 (based on the closing price on March 28, 2007 of CHF 720).
Subsequently, the annual salary of CEO Thomas Limberger for the 2006 financial year now comprises:
- a base salary: CHF 1.954.982
- 8.000 shares (whereof 5.000 were granted on January 1, 2006; 3.000 are to be granted end of March 2007).
OC Oerlikon's expenditure in regard to Thomas Limberger's annual salary consists therefore of CHF 3.150.000 in shares plus CHF 1.954.982 in cash. At the current price, the total value of shares granted to Thomas Limberger for the 2006 financial year would amount to CHF 5.760.000. His remuneration package would total CHF 7.714.982.
