1.3 Personnel expense

in CHF mn	2023	2022
Salaries and wages	341.9	326.8
Social security contributions	60.0	58.2
Employee benefit expense from IAS 19¹	(1.3)	10.6
Other personnel expenses	17.1	13.6
Total	417.6	409.2

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, considering the effects of the change to the group of consolidated companies (CHF 20.5 million) and the impact of IAS 19 (CHF –11.9 million).

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

2023
Number of members as of balance sheet date	7.0	4.0	11.0
Annual average of members	7.0²	4.0³	11.0
Fees / basic salaries	2 065	1 201	3 266
Profit participation for managers and share of profits for Group Management paid in cash	–	314	314
Share of profits for Group Management paid in shares 2023⁴	–	20⁵	20
Share of profits for Group Management paid in shares 2022⁴	–	9	9
Share of profits for Group Management paid in shares 2021⁴	–	38	38
Share of profits for Group Management paid in shares 2020⁴	–	–	–
Employee Carry lncentive Plan	–	–	–
Pension and social security contributions	223	300	523
Expense reimbursements	111	68	178
Non-monetary benefits	–	–	–
Other compensation	–	–	–
Total	2 399	1 950	4 349


2022
Number of members as of balance sheet date	7.0	4.0	11.0
Annual average of members	7.3	4.0	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

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: – Andreas Schulthess until 14 April 2023 – Christoph Tonini until 14 April 2023 – Stephanie Caspar from 14 April 2023 – Claudia Coninx-Kaczynski from 14 April 2023
3 For the determination of the annual average number of members, entries and exits are the relevant criteria: – No changes in 2023
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 2023 financial year, a member of Group Management was granted a profit participation of CHF 0.10 million, with CHF 0.02 million being for the shares allocated. 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 shares allocated in the 2022 and 2021 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, 423 treasury shares were issued in 2023 for the 2019 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 0.04 million.

Share-based component of Group Management profit participation

number	2023	2022
As of 1 January	1 757	4 789
Entitlements of former members of Group Management no longer taken into account	–	(2 446)
Exercised	(423)	(927)
Forfeited	–	–
Allocated	705	341
As of 31 December	2 039	1 757
of which exercisable	–	–

Allocation date	Blocked until	Fair value as of grant date	Fair value as of balance sheet date	Outstanding entitlements 2023	Outstanding entitlements 2022
31.12.2019	31.12.2022	93.7	119.6	–	423
31.12.2020	31.12.2023	–	119.6	–	–
31.12.2021	31.12.2024	156.4	119.6	993	993
31.12.2022	31.12.2025	149.4	119.6	341	341
31.12.2023	31.12.2026	119.6	119.6	705	–

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.