7.3Share-based compensation
The members of the Board of Directors can choose whether to receive all or part of their remuneration in Rieter shares. In the context of their remuneration for 2025, two members of the Board of Directors received in total 62 345 shares on January 19, 2026. The cost of CHF 0.3 million was charged to the consolidated income statement 2025. On January 17, 2025, four members of the Board of Directors received in total 5 868 shares in connection with their remuneration for 2024. The market value of the shares granted was CHF 0.5 million and was charged to the consolidated income statement 2024. The shares are taken from treasury shares of Rieter Holding Ltd. and cannot be sold for three years.
In the context of the variable remuneration for 2025, the members of the Group Executive Committee will not receive any Rieter shares as the pre-condition for variable remuneration has not been fulfilled. In the context of the variable remuneration for 2024, the members of the Group Executive Committee received 14 913 shares with a market value of CHF 1.3 million on April 1, 2025. The respective cost of CHF 1.3 million was charged to the consolidated income statement 2024. These shares are taken from treasury shares of Rieter Holding Ltd. and cannot be sold for three years.
Rieter operates an incentive plan for the members of the senior management (excluding the members of the Group Executive Committee). In January 2024, it was decided that a defined percentage of the existing short-term incentive will be settled by transferring it to the new incentive plan. In the context of the incentive plan for 2025, the participants in the long-term incentive plan will not receive any shares since the pre-condition for variable compensation has not been fulfilled. In the context of the long-term incentive plan for 2024, the participants received Rieter shares with a market value of CHF 2.1. million in April 2025. The respective cost of CHF 2.1 million was charged to the consolidated income statement 2024. The shares are taken from treasury shares of Rieter Holding Ltd. and cannot be sold for three years.
The previous long-term incentive plan, granting the participants rights to receive a certain number of Rieter shares free of charge or to receive cash compensation in the amount of the same number of shares at the market price after three years, expired on May 4, 2025.
The movement of the outstanding rights was as follows:
Number of rights | 2024 | 2025 |
|---|---|---|
Outstanding rights at January 1 | 5 172 | 4 257 |
Granted | – | – |
Exercised/paid-out | – | – 3 859 |
Expired | – 915 | – 398 |
Outstanding rights at December 31 (non-exercisable) | 4 257 | 0 |
In 2025, the expiration of the long-term incentive plan resulted in an income in the amount of CHF 0.1 million affecting the income statement (2024: CHF 0.1 million). There was no liability recognized in the balance sheet at December 31, 2025 (December 31, 2024: CHF 0.4 million).
Material accounting policies
Rieter uses share-based awards in the context of the compensation of the members of the Board of Directors, the Group Executive Committee, and senior management. The plans are equity settled share based payment awards.
Share-based payments are measured at fair value at the grant date and recognized in the consolidated income statement over the vesting period. For share-based payments that are settled with equity instruments, a corresponding increase in equity is recognized.