«A good board position is more than just a fee.»

Compensation for board members varies considerably in Switzerland. While SMEs typically pay moderate fees, compensation at large publicly traded companies can sometimes run into the millions.

How much do board members earn in Switzerland?
The issue of board member compensation is a concern for business owners, shareholders, and candidates alike. The answer varies greatly depending on the size of the company.

For small and medium-sized enterprises, the BDO Board of Directors Study paints a clear picture. Members of an SME’s board of directors earn an average of about CHF 21,000 per year. Board chairs and executive members earn about CHF 28,000. About 45 percent of board chairs receive less than CHF 10,000 annually, while only about 6 percent earn more than CHF 100,000.

The situation is quite different for large, publicly traded companies. According to an Ethos study, Severin Schwan, chairman of the board of directors at Roche, earned CHF 5.781 million last year. Juan Carlos Torres Carretero of Avolta, Colm Kelleher of UBS, and Nayla Hayek of Swatch Group also received compensation in the high single-digit millions.

The gap between small and medium-sized enterprises (SMEs) and large corporations illustrates just how crucial a company’s size is to compensation. In addition, the scope of responsibilities, the time commitment, and prior experience play a key role.

The nature of the compensation is striking. The majority of Swiss board members receive a fixed lump sum, while just under one-fifth combine this with attendance fees. A performance-based component, at around 9 percent, remains the exception. This is consistent with the Swiss tradition of corporate governance focused on stability and independence.

Another trend can be observed. Top executive compensation has declined slightly in recent years, while compensation for mid-level executives has risen. At the same time, the workload for board members has increased noticeably, driven by geopolitical uncertainty, regulatory requirements, and heightened expectations regarding governance and reporting.

For companies looking to fill or renew their board of directors, it’s worth looking beyond mere numbers. Competitive and transparent compensation is a key factor in attracting qualified and independent individuals to serve on the board. This is exactly where we at Batterman Consulting AG come in. Drawing on our experience in executive, expert, and board of directors search, we help companies define the appropriate compensation structure for their governing bodies and find the right individuals to fill those roles.