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

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 2017 2016
Cash payments and benefits
Base salary 1.055 1.005
Short-term incentive (cash)1 2.200 1.758
Post-employment benefits / other benefits 2 0.514 0.489
Share-based payments
Value of LTIP equity at market value 3
(number of equity awards 2017: 5.583, 2016: 6,398)
1.010 1.000
Total 4.779 4.252
Ratio of fixed compensation to the performance-related components of compensation (without termination payment) 41.61% 46.60%

The proposed STIP payment for 2017 reflects Lonza’s outstanding improvements across all key performance indicators, leading to the best­ full-year ­results in Lonza’s history. Compared with the STIP payout for the financial year 2016, the proposed STIP amount for the financial year 2017 represents an increase of 25.1%.

The strong sales growth and high margin improvement are the result of diligent and disciplined application of Lonza’s successful strategy.