Nadia Haddad· Director of Rewards, MEA, Qasr Holdings
Asked in Executive Compensation ·
Swiss listed medical devices company, about CHF 2bn market cap. We are hiring a CFO from Germany and her advisers have asked for a twelve month notice period plus a termination payment of twelve months' salary and target bonus if we end the contract.
Our understanding is that termination payments on top of notice are not open to us for executive committee members, and that notice is capped at twelve months. The candidate's side say other companies find ways.
What are people actually agreeing for CFO hires in Switzerland and neighbouring markets?
0 reactions · 2 replies · 9 views
Priya RaghunathanGRS, CSI
Head of People Analytics, Calibre Software
Your understanding matches ours. Twelve months' notice, paid as normal salary with bonus at the committee's assessment, and nothing on top. The ways people refer to are usually a paid non-compete after the end of employment. We use one of twelve months at 50% of salary, and it has to protect a real business interest or it is a severance payment by another name.
Dana WhitfieldCRP, GRS
Director, Global Compensation, Meridian Health Systems
From the German side: a cap of two years' total remuneration is the norm for management board contracts there, and never more than the remaining term. So she is asking for something well inside what she is used to. The conversation goes better if you explain the Swiss framework as a fixed constraint and then show the value of twelve months' full notice, which is generous by most other standards.
