1.3 Personnel expense

in CHF mn	2022	2021
Salaries and wages	326.8	363.2
Social security contributions	58.2	60.2
Employee benefit expense from IAS 19¹	10.6	9.5
Other personnel expenses	13.6	14.8
Total	409.2	447.8

1 The expense reported for IAS 19 includes the positions Current employer service costs, Effect of plan curtailments/settlements, Past service cost, Administration costs excl. Employer contributions (recognised under Social security) as set out in Note 2.9. The impact from interest payable and the anticipated returns on plan assets is recognised under Net financial result

Personnel expense remained mostly stable when the effects of the change to the group of consolidated companies (SMG companies with a contribution of CHF 42.7 million no longer included) are considered.

Board of Directors and Group Management compensation

The compensation shown reflects the expenditures recognised in the income statement during the reporting year (irrespective of the dates on which these were paid). Included among the active members of the Board of Directors and Management Board are those individuals who completed their period of tenure during the year.

in CHF 000	Directors¹	Group Management	Total

2022
Number of members as of balance sheet date	7.0	4.0	11.0
Annual average of members	7.3²	4.0³	11.3
Fees / basic salaries	2 090	1 112	3 202
Profit participation for managers and share of profits for Group Management paid in cash	–	240	240
Share of profits for Group Management paid in shares 2022⁴	–	9⁵	9
Share of profits for Group Management paid in shares 2021⁴	–	38	38
Share of profits for Group Management paid in shares 2020⁴	–	–	–
Share of profits for Group Management paid in shares 2019⁴	–	9	9
Pension and social security contributions	226	267	493
Expense reimbursements	114	68	181
Non-monetary benefits	–	–	–
Other compensation	–	–	–
Total	2 429	1 743	4 172


2021
Number of members as of balance sheet date	8.0	3.0	11.0
Annual average of members	8.0	3.0	11.0
Fees / basic salaries	2 165	933	3 098
Profit participation for managers and share of profits for Group Management paid in cash	–	751	751
Share of profits for Group Management paid in shares 2021⁴	–	188⁵	188
Share of profits for Group Management paid in shares 2020⁴	–	–	–
Share of profits for Group Management paid in shares 2019⁴	–	29	29
Share of profits for Group Management paid in shares 2018⁴	–	51	51
Pension and social security contributions	227	291	518
Expense reimbursements	123	45	168
Non-monetary benefits	–	6	6
Other compensation	–	–	–
Total	2 514	2 293	4 808

1 The Board of Directors currently comprises the full-time Chairman/publisher and non-executive members.
2 For the determination of the annual average number of members, entries and exits are the relevant criteria: – Pierre Lamunière until 8 April 2022
3 For the determination of the annual average number of members, entries and exits are the relevant criteria: – Samuel Hügli until 31 December 2021 – Daniel Mönch from 1 January 2022 – Ursula Nötzli from 1 January 2022
4 See information on the share of profits for Group Management.
5 In Note 1.3 of the Consolidated Financial Statements, share-based payments are reported based on the values recognised in profit or loss in the reporting year. For the purposes of the Compensation Report, however, share-based payments are taken into account at the time of allocation.

Group Management profit participation programme (LTI)

The current profit participation programme applies to the years 2021 to 2023. Members of Group Management are entitled to participate as of their second year of service. Payment is made if the profit margin (net income margin) of TX Group reaches or exceeds 8.0 per cent. A profit participation, which will be determined at the time, will be paid out of any amount exceeding the profit margin of 8.0 per cent, with 50 per cent being paid in cash and the remaining 50 per cent in shares.

The cash amount is paid out after the publication of the consolidated financial statements of TX Group. The shares are allocated in the accounting year in which entitlement is acquired. The number of shares to be allocated is determined based on the average share price over the last 30 days before 31 December of the respective financial year. The shares are only transferred if the beneficiary has not given notice of termination of employment prior to 31 December of the third year after the accounting year in which entitlement to the share allocation was acquired.

For the 2022 financial year, the Board of Directors exercised its right and increased payment at its discretion. Group Management was granted a profit participation of CHF 0.06 million, with CHF 0.01 million being for the shares allocated. For the 2021 financial year, the Board of Directors exercised its right and increased payment at its discretion. Group Management was granted a profit participation of CHF 0.49 million, with CHF 0.19 million being for the shares allocated.

For the shares allocated in the 2021 and 2019 financial years, personnel expenses of CHF 0.04 million and CHF 0.01 million respectively were recognised in the current year. Group Management did not receive any profit participation payments for the 2020 financial year.

As part of the profit participation programme, 927 treasury shares were issued in 2022 for the 2018 financial year to the members of Group Management. Measured in terms of market value on the allocation date, the total value of these shares was CHF 0.1 million.

Share-based component of Group Management profit participation

number	2022	2021
As of 1 January	4 789	4 959
Entitlements of former members of Group Management no longer taken into account	(2 446)	–
Exercised	(927)	(2 156)
Forfeited	–	–
Allocated	341	1 986
As of 31 December	1 757	4 789
of which exercisable	423	–

Allocation date	Blocked until	Fair value as of grant date	Fair value as of balance sheet date	Outstanding entitlements 2022	Outstanding entitlements 2021
31.12.2018	31.12.2021	105.5	149.4	–	1 957
31.12.2019	31.12.2022	93.7	149.4	423	846
31.12.2020	31.12.2023	–	149.4	–	–
31.12.2021	31.12.2024	156.4	149.4	993	1 986
31.12.2022	31.12.2025	149.4	149.4	341	–

Accounting policies

The fair value of the share-based payments is calculated on the day of grant. The share-based payments are then recognised over the vesting period as personnel expense with an increase in equity. These are then settled by means of treasury shares, which are bought on the market for this purpose on an ongoing basis.