4.4 – Highest Compensation Paid to a Member of the Executive Committee 

The table below shows the breakout of the compensation of the highest-paid individual.

Compensation of the Highest-Paid Individual (Richard Ridinger, CEO)

million CHF 2016 2015

Cash payments and benefits


Base salary 1.005 0.965
Short-term incentive (cash)1 1.758 1.173
Post-employment benefits / other benefits 2 0.489 0.339

Share-based payments


Corrective One-Time True-Up for CEO 3   0.534
Value of LTIP equity at market value 4
(number of equity awards 2016: 6,398 / 2015: 8,516)
1.000 0.930
Total 4.252 3.941
Ratio of fixed compensation to the performance-related components of compensation (without termination payment) 46.60% 87.35%

The proposed STIP payment for 2016 reflects Lonza’s outstanding improvements across all key performance indicators, leading to the best-ever full year-results in Lonza’s history. Compared with the STIP payout for the financial year 2015, the proposed STIP amount for the financial year 2016 represents an increase of 50%. The strong sales growth and high margin improvement are the result of diligent and disciplined application of Lonza’s successful strategy.