Ascom Corporate Governance Report 2016 · PDF file12 ASCOM ANNUAL REPORT 2016 CORPORATE...
Transcript of Ascom Corporate Governance Report 2016 · PDF file12 ASCOM ANNUAL REPORT 2016 CORPORATE...
12 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Corporate Governance
Listed corporation: Ascom Holding AG AscomHoldingAG(AscomHoldingSA,AscomHolding Ltd.)isajoint-stockCompanyheadquarteredinBaar,Switzerland.IthasasharecapitalofCHF18,000,000,dividedinto36,000,000registeredshareswithaparvalueofCHF0.50pershare.
TheCompany’sregisteredsharesaretradedontheSIXSwissExchangeSwissReportingStandardun-derISINCH0011339204,symbolascn.Tickersymbols:
■■ Bloomberg: ASCN SW■■ Reuters: ASCN.S
Market capitalization as of 31 December 2016 was CHF576.0million.
Unlisted Group companiesThefollowingcompaniesbelongtotheAscomHoldingAGscopeofconsolidation(seetableonpage14).1. CORPORATE STRUCTURE
AND SHAREHOLDERS
Ascom is fully committed to goodCorporateGover-nance. The information published in the CorporateGovernance report follows the SIX Swiss Exchangedirectivesonstandards relating toCorporateGover-nance. All information within this Corporate Gover-nancereportreferstorulesandregulationsthatwereineffectasof31December2016. Operating corporate structure (as of 1 January 2017)
*AlsomemberoftheExecutiveBoard.
CEOHolgerCordes*
LegalJudithBischof
Corp. Secretary &Communications / IR
DanielLack
North AmericaTimWhelehan
Regional Sales Organizations
COOClaesÖdman*
Software PlatformsAndréNeu
CFOBiankaWilson*
Marketing & Business Development
FrancisSchmeer*
SalesHolgerCordes*
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13ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
TheAscomTopManagement
LTR:DanielLack,JudithBischof,TimWhelehan,HolgerCordes,ClaesÖdman,BiankaWilson,AndréNeu,FrancisSchmeer.
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Shareholders
Registered shareholdersAsof31December2016,therewere4,630shareholdersregisteredintheshareregisterofAscomHoldingAG.
Share ownership as of 31 December 2016
Number of shares Number of shareholders
1to100 889
101to1,000 2,424
1,001to5,000 1,047
5,001to10,000 124
Morethan10,000 146
Total 4,630
Significant shareholdersThe following significant shareholders exceeding athresholdof3%ofvotingrightswererecordedintheshareregisterasof31December2016:
■■ VeraisonSICAV,Zurich:7.62%■■ UBS Fund Management (Switzerland) AG, Basel:3.66%
Thisdoesnotcovershares,whicharenotregisteredintheshareregister(disposhares).Disposharesamount-edto35.23%asof31December2016.
In accordance with the disclosure announcementsmadeaccordingtoArticle120oftheFinancialMarketInfrastructureAct(FMIA),thefollowingpartieswithvot-ingrightsexceedingathresholdof3%areregardedassignificantshareholdersinAscom:
■■ UBS Fund Management (Switzerland) AG, Basel:Ascomsecurities representing5.32%of the votingrights(announcementdated27August2016)
■■ Schrodersplc,London,UK:Ascomsecuritiesrepre-senting5.068%ofthevotingrights(announcementdated11December2015)
■■ VeraisonSICAV,Zurich:Ascomsecuritiesrepresent-ing5.0176%ofthevotingrights(announcementdat-ed4March2016)
■■ Sterling Strategic Value Ltd., Tortola, British VirginIslands:Ascomsecuritiesrepresenting3.8652%ofthevotingrights(announcementdated15December2016)
■■ Credit Suisse Funds AG; Zürich: Ascom securitiesrepresenting3.30%of thevotingrights (announce-mentdated13September2016)
■■ NorgesBank,Oslo,Norway:Ascomsecuritiesrepre-senting 3.16% of the voting rights (announcementdated30April2014)
■■ BlackRock Inc., New York, USA: Ascom securitiesrepresenting2.69%ofthevotingrightsandsaleposi-tionsof0.96%(announcementdated24September2016)
Unlisted Group Companies: Ascom Holding AG (as of 31 December 2016)
Country Company Registered Office Share Capital Parent Company Group’s Interest
Australia GTMResourcesPty.Ltd. Chippendale AUD 3 AscomHoldingAG 100%
AscomIntegratedWirelessPty.Ltd. Chippendale AUD 3,000,000 GTMResourcesPty.Ltd. 100%
Belgium Ascom(Belgium)NV Brussels EUR 1,424,181 AscomHoldingAG 100%
Denmark AscomDanmarkA/S Glostrup DKK 1,200,000 AscomHoldingAG 100%
Finland AscomMiratelOy Turku EUR 33,638 AscomHoldingAG 100%
France Ascom(France)SA Nanterre EUR 2,000,000 AscomHoldingAG 100%
Germany AscomDeutschlandGmbH Frankfurta.M. EUR 2,137,200 AscomUnternehmensholdingGmbH 100%
TechnologieparkTeningenGmbH Emmendingen EUR 6,136,000 AscomUnternehmensholdingGmbH 94% AscomSolutionsLtd. 6%
AscomUnternehmensholdingGmbH Frankfurta.M. EUR 5,113,000 AscomHoldingAG 100%
Italy AscomUMSs.r.l. Scandicci EUR 100,000 AscomSolutionsLtd. 100%
Malaysia Ascom(Malaysia)SdnBhd Ampang MYR 1,000,000 AscomHoldingAG 100%
Netherlands Ascom(Nederland)BV Utrecht EUR 1,361,000 AscomSolutionsLtd. 100%
Norway Ascom(Norway)A/S Oslo NOK 1,250,000 AscomSolutionsLtd. 100%
Singapore AscomSolutions(Singapore)PteLtd Singapore SGD 50,000 AscomSolutionsLtd. 100%
Sweden Ascom(Sweden)AB Gothenburg SEK 96,154,000 AscomHoldingAG 100%
Switzerland AscomManagementLtd. Baar CHF 200,000 AscomHoldingAG 100%
MocsaAGinLiquidation Berne CHF 100,000 AscomHoldingAG 100%
AscomSolutionsLtd. Mägenwil CHF 10,000,000 AscomHoldingAG 100%
United Kingdom Ascom(UK)Ltd. Birmingham GBP 50,000 AscomSolutionsLtd. 100%
USA Ascom(US)Inc. MorrisvilleNC USD 1 AscomSolutionsLtd. 100%
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15ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Furtherdetailsregardingtheseshareholdersaswellasadditionalinformationregardingtheindividualdisclo-sure notices in 2016 are available on the disclosureplatform of the SIX Swiss Exchange at www.six- exchange-regulation.com/en/home/publications/ significant-shareholders.html?companyId=ASCOM
The freefloatof thesharesofAscomHoldingAG is100%since1November2013.
Asofthebalancesheetdate,theCompanyheld98,075treasury shares, representing 0.27% of voting rights.TheCompanyonlyheldownsharestobacktheongoinglong-term incentive plans (stock option plans, sharematchingplans).
Therearenoknownshareholders’agreements.
Cross-shareholdingsTheAscomGrouphasnotentered into cross-share-holdingswithother companies in termsof capitalorvotingrights.
2. CAPITAL STRUCTURE
Ordinary share capitalSince6April2006,thesharecapitalhasamountedtoCHF18,000,000,dividedinto36,000,000registeredshareswith apar valueofCHF0.50per share. Thesharecapitalisfullypaidup.
At theAnnualGeneralMeeting held on 6 April2006,theCompany’ssharecapitalwasreducedfromCHF 198,000,000 to CHF 18,000,000 (par valuereducedtoCHF0.50).ParvalueofCHF5perregis-teredsharewasrepaidon28June2006.
Share structure
Number31.12.16(CHFm) Number
31.12.15(CHFm)
Registered sharesparvalueCHF 0.50
36,000,000 18.0 36,000,000 18.0
Registered shareholders
4,630 4,412
Bonus certificatesAscomHoldingAGhasnot issuedanybonuscertifi-cates.
Authorized share capital/conditional share capitalTheCompanyhasnoauthorizedorconditional sharecapital.
Changes in equityThe equity of Ascom Holding AG has changed asfollows:
CHF 1,000 2016 2015 2014 1 2013
Sharecapital
18,000 18,000 18,000 18,000
Legalreserves
6,523 6,523 6,523 17,577
Retainedearnings
395,203 469,538 432,053 384,232
Treasuryshares
(1,046) (2,345) (9,206)
Total 418,680 491,716 447,370 419,809
1 ThefigureshavebeenadjustedtothenewSwissaccountinglegislation oftheSwissCodeofObligations.
Limitations on transferability and nominee registrations
■■ Inprinciple,theArticlesofAssociationofAscomHold-ingAGcontainnolimitationsontransferabilityandnostatutoryprivileges(www.ascom.com/corp/corporate-governance/directives-and-guidelines.html).
■■ Theshare registrationguidelinesarepublishedontheCompany’swebsite(www.ascom.com/en/share-registration-guidelines.pdf).
■■ Every person recorded in the share register is re-gardedasashareholderorbeneficiaryvis-à-vistheCompany.
■■ Forregisteredshares,ashareregisterismaintainedinwhichthenamesandaddressesoftheownersandbeneficiariesareentered.ChangesmustbereportedtotheCompany.
■■ Entryintheshareregisterrequiresproofofacquisi-tionof titletothesharesorofbeneficiarystatus.Apurchaserofregisteredsharesisenteredintheshareregisteruponrequestasavotingshareholderifhe/sheexpresslydeclaresthathe/sheacquiredthereg-isteredshares inhis/herownnameandonhis/herown account. If the purchaser is not prepared tomakesuchadeclaration,theBoardofDirectorsmayrefuseregistrationasavotingshareholder.
■■ After consulting the party involved, the Companymaydeleteentriesintheshareregisterifsuchentriesoccurredinconsequenceoffalsestatementsbythepurchaser.Thepurchasermustbeinformedimmedi-atelyofthedeletion.
■■ Admissionofnominees isdecidedby theBoardofDirectors.Noapplicationsinthisregardweresubmit-tedin2016.
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Options/convertible bonds
Options/share matching plansAscomstockoptionplansaswellasthesharematch-ing plan are listed in the Remuneration Report on pages27to41.
Convertible bondsAscomHoldingAGhasnotissuedanyconvertiblebonds.
Management transactionsThelistingrulesoftheSIXSwissExchangestipulatea disclosure obligation in respect of managementtransactions, including exercise of options, acquisi-tionsandsalesofAscomshares.Toensurecompli-ancewiththeseprovisions,theBoardofDirectorshasissuedanAnnextotheOrganizationRegulations.De-tailscanbe foundon thedisclosureplatformof theSIXSwissExchangeatwww.six-exchange-regulation.com/en/home/publications/management-transac-tions.html?companyId=ASCOM
3. BOARD OF DIRECTORS
Primary tasks of the Board of DirectorsTheBoardofDirectorsholdsultimatedecision-makingauthorityanddeterminesthestrategic,organizationalandfinancialplanningguidelinesfortheGroupaswellas the Company objectives. The Board of Directors is responsible for theoveralldirectionaswellas the supervision and control of the management. It setsguidelinesforbusinesspoliciesandensuresthatit isregularlyinformedonthecourseofbusiness.
TheprimarytasksoftheBoardofDirectorsunderthe Swiss Code of Obligations and the Articles ofAssociationofAscomHoldingAGare:
■■ OverallmanagementoftheCompanyandtheGroup,including setting the strategic direction as well as issuingdirectivesasrequired
■■ Definingtheorganizationandmanagementstructure■■ Layingouttheformsofaccountingandfinancialcon-trolaswellasfinancialplanning
■■ AppointinganddischargingpersonsentrustedwiththemanagementandrepresentationoftheCompanyanddeterminingwhoisentitledtosignonbehalfoftheCompany
■■ Ultimatesupervisionofbusinessactivities■■ DrawinguptheAnnualReportandtheRemunerationReport as well as preparing the Annual GeneralMeetingandcarryingoutitsresolutions
■■ Informingthecourtsintheeventofexcessiveindebt-edness
■■ Passingresolutionsonthefinancingofbusiness,andinparticulardecidingoncapitalincreasesandIPOsand the consequent changes to the Articles of Association
■■ Passingresolutionsonparticipationsofmajor/strate-gicsignificance
■■ Determining thecompensation formembersof theBoardofDirectorsandtheExecutiveBoardsubjecttotheapprovaloftheAnnualGeneralMeeting
Election and composition of the Board of Directors of Ascom Holding AGTheArticlesofAssociationdefinetheelectionoftheBoardofDirectorsofAscomHoldingAGasfollows:
■■ TheBoardofDirectorsconsistsofatleastthreeandnotmorethansevenmembers.
■■ TheGeneralMeetingelects themembers and theChairmanoftheBoardofDirectorsindividually.
■■ ThetermsofofficeofthemembersoftheBoardofDirectorsaswellasthetermofofficeoftheChairmanoftheBoardofDirectorsshallendnolaterthanattheclosing of the ordinary General Meeting followingtheirelection.Re-electionispermitted.
■■ ThemajorityofthemembersoftheBoardofDirec-torsshallbeindependentmembers.
■■ Members of the Board of Directors retire from theBoardofDirectorsattheAnnualGeneralMeetingofthe respective yearwhen they complete their 70th yearofage.
Ascom’sArticles of Association are available on theCompany website: www.ascom.com/corp/corporate-governance/directives-and-guidelines.html
TheBoardofDirectorsaimsforabalancedprofession-alexpertiseanddiversityofitsmemberswhenpropos-ingthemforelectiontotheAnnualGeneralMeeting.Theselectionprocessisregardlessoforigin,national-ity,culture,religion,orgender.
AttheAnnualGeneralMeetingofAscomHoldingAGheldon13April2016,theshareholderselectedthefollowingmembersoftheBoardofDirectorsindividu-allyandforatermofoneyearuntiltheAnnualGeneralMeeting2017:
Member since Elected until AGM
JuhaniAnttila,Chairman 2001 2017
DrJ.T.Bergqvist 2005 2017
DrValentinChaperoRueda 2016 2017
DrHaraldDeutsch 2014 2017
UrsLeinhäuser 2015 2017
ChristinaStercken 2014 2017
AndreasUmbach 2010 2017
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■■ Inaddition,membersoftheBoardofDirectorsmayoccupyorexercisefiveuncompensatedpositionsinthehighestmanagingor supervisingbodyof suchentities,wherebyexpenserecoveryisnocompensa-tion.
■■ TheChairmanoftheBoardofDirectorsmayexerciseatotalofuptothreepositionsinotherpubliclytradedcompanies.
■■ Inadditiontothesemandates,membersoftheBoardofDirectorsmayoccupyorexercisenotmorethanfivepositionsinseveraldifferentcompaniesthatformthesamegroupofcompaniesorpositions thatareheldbasedontheInstructionsoftheCompany.
JuhaniAnttilaalsoactedasCEOoftheAscomGroupconcurrentlyfrom1January2003to31May2004.
NoneoftheothermembersoftheBoardofDirec-torspreviouslyworkedfortheAscomGroup,nordoesanymemberoftheBoardofDirectorsperformanyper-manentmanagementorconsultancyfunctionsforim-portant Swiss or foreign interest groups or hold anyofficialpositionsorpoliticaloffices.
Mode of operation of the Board of DirectorsAsarule,theBoardofDirectorsmeetsonamonthlybasis.Additionalmeetingsorconferencecallsareheldasandwhennecessary.Ingeneral,theCEOandCFOattendallordinarymeetingsoftheBoardofDirectors.Inaddition,executivesessionsareheld.Othermem-bersoftheExecutiveBoardaswellasexternalexpertsareinvitedtoattendmeetingstoaddressspecifictop-icsifnecessary.
20 meetings (including both physical meetingsandconferencecalls)wereheldin2016.Boardatten-dancewas97.8%.TheordinarymeetingsoftheBoardofDirectorslastonefulldayandstrategymeetingslasttwodays.
Theshareholdersre-electedJuhaniAnttilaasaChair-man of the Board and Andreas Umbach, Dr J.T.Bergqvist,andDrHaraldDeutschasmembersoftheCompensationCommitteebothforatermofoneyear.
Allmembersof theBoardofDirectorsarenon-executive members. No member of the Board of DirectorshasanysignificantbusinessrelationshipwithAscomHoldingAGoritssubsidiaries.
Secretary of the Board of DirectorsDrDanielLackhasservedasSecretaryoftheBoard ofDirectorssinceMay2001.
Changes to the Board of DirectorsDrValentinChaperoRuedawaselectedasnewmem-ber to theBoardofDirectors at theAnnualGeneralMeeting2016foratermofoneyear.
Internal organization■■ ExceptfortheelectionoftheChairmanoftheBoardandthemembersoftheCompensationCommittee,theBoardofDirectorsisself-constitutinganddesig-nates its other committees and the Secretary. ThelatterneedsnotbeamemberoftheBoard.
■■ TheBoardofDirectorsisquoratewhenthemajorityofmembersarepresent. In theeventofcapital in-creases,suchaquorumisnotrequiredfordecisionsconcerningdefinitionofthecapitalincrease,amend-ments to theArticles of Association or resolutionsregardingthecapitalincreasereport.
■■ TheBoardofDirectorspasses its resolutionsby amajorityof thevotescast.TheChairmanholds thecastingvote.
■■ ResolutionsmayalsobeadoptedbywrittenconsenttoaproposalcirculatedbytheChairmanamongallmembersandpassedbyamajorityofallmembersoftheBoardofDirectors.
■■ Minutes are kept of deliberations and resolutions,andaresignedbytheChairmanandtheSecretary.
■■ Membersof theBoardofDirectorsmayexercise aconsultingmandatefortheAscomGroupalongsidetheiractivityontheBoard,subjecttotheunanimousconsentoftheBoardofDirectors.Therewerenosuchconsultingmandatesasofthebalancesheetdate.
Mandates outside the Ascom Group of members of the Board of Directors Article20dof theArticlesofAssociationdefinesthemandatesoutsidetheAscomGroup:
■■ Membersof theBoardofDirectorsmayoccupyorexercisefouradditionalpositionsagainstcompensa-tioninthehighestmanagingorsupervisingbodyofotherentitiesthatareobligedtobeenteredintothecommercialregisteroracomparableforeignregisterandthatareneithercontrolledbynorthatcontroltheCompany.
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18 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Members of the Board of Directors
Juhani Anttila Chairman
Nationality: Finland | Born 1954 |
Place of residence: Zug, Switzer-
land | Member since 2001 |
Chair man since 2002 | Elected
until AGM in 2017
StudiedlawattheUniversityof
Helsinki,Finland(1976Bache-
lor’sdegree,1978Master’s
degree);movedtoSwitzerland
in1978; 1981 – 1985Managing
PartneratCACorporateAdvisers,
Zurich;1985AppointedManag-
ingDirectorofNokiaGmbH,
Zurich,andresponsibleforvari-
ousactivitiesfortheNokia
Group;1990 – 1995Chairmanof
theExecutiveBoardofNokia
(Deutschland)GmbH,Pforzheim;
1996 – 2002CEOoftheSwisslog
Group;since 14 May 2002Chair-
manoftheBoardofDirectorsof
AscomHoldingAG;
1 January 2003 – 31 May 2004
alsoCEOoftheAscomGroup;
Since 2004ManagingPartnerof
ValcreaAG,Zug
Dr J.T. Bergqvist
Nationality: Finland | Born 1957 |
Place of residence: Helsinki,
Finland | Member since 2005 |
Elected until AGM in 2017
1981MasterofScience,Helsinki
UniversityofTechnology;1987
DoctorateinComputerScience,
HelsinkiUniversityofTechnology;
1980 – 1987Softwarespecialist
andProjectManageratNokia;
1988AssistantProfessorat
HelsinkiSchoolofEconomics;
1988 – 1995AreaGeneral
Manager,NokiaNetworks;1995
VicePresident,CellularTrans-
mission,NokiaNetworks;1997
SeniorVicePresident,Radio
AccessSystems,NokiaNetworks;
2000 – 2005Senior/Executive
VicePresident & GeneralManag-
er,GlobalBusinessUnits,Nokia
Networks;2002 – 2005Member
oftheGroupExecutiveBoard,
NokiaCorporation;2009 – 2012
CEO(andlaterChairman)of
K.HartwallOyAB,Söderkulla,
Finland;Since 2014Chairman
andCEOofHuurreGroup,
Vantaa,Finland
Dr Harald Deutsch
Nationality: Germany | Born
1962 | Place of residence:
Schwalbach am Taunus,
Germany | Member since 2014 |
Elected until AGM in 2017
1987Graduationasphysician.
Medicalexam,Universityof
Cologne;1988Approbation,and
memberofGermanMedical
Association;1988Graduationas
MasterofScience(MSc)inPhys-
ics,UniversityofCologne;1989
PromotiontoMedicalDoctor
(MD),UniversityofCologne;
1988 – 1989Bundeswehr(Ger-
manyArmedForces):Military
Surgeon;1990 – 1998Behring-
werkeAG,Marburg,Germany:
SoftwareDirector;1998 – 2003
BoozAllen & Hamilton,
Frankfurt/M.:PrincipalandMem-
beroftheGermanBoard;
2003 – 2008Accenture,Kron-
berg,Germany:Executive
PartnerandManagingDirector;
2008 – 2012CSCComputer
SciencesCorporation,Aldershot,
UK,andWiesbaden,Germany:
VicePresidenthealthcareEMEA;
2012–2015BearingPointGmbH,
Frankfurt/M.andAmsterdam:
PartnerandIndustryLeadhealth-
care;Since 2015Independent
Consultant
Dr Valentin Chapero
Nationality: Spain/Switzerland |
Born 1956 | Place of residence:
Wilen bei Wollerau, Switzerland |
Member since 2016 | Elected
until AGM in 2017
1986/1988MasterandPhD
(Drrer.nat.)inPhysics,University
ofHeidelberg,Germany;
1988 – 1992DirectorofSystems
IntegrationforMainframeUnix
Systems,SiemensNixdorfInfor-
mationsSystemsAG,Paderborn,
Germany;1992 – 1994VicePresi-
dentProfessionalServices,
SiemensNixdorfSpain,Madrid;
1994 – 1996VicePresidentNet-
workSystems,SiemensAG
Spain,Madrid;1996 – 1999 CEO
SiemensAudiologischeTechnik
GmbH,Erlangen,Germany;
2000 – 2002PresidentMobile
Network,SiemensAG,Munich;
2002 – 2011CEOSonovaHolding
AG,Stäfa;Since 2011Business
Angel & InvestorValameroHold-
ingAG,Wilenb.Wollerau;Since
2015Co-founderandPartner
VeraisonCapitalAG,Zurich
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19ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Urs Leinhäuser
Nationality: Switzerland | Born
1959 | Place of residence:
Winterthur, Switzerland | Mem-
ber since 2015 | Elected until
AGM in 2017
1983DegreeinBusinessAdmin-
istration,ZurichUniversityof
AppliedSciences;1983 – 1986
CantonalTaxDepartmentSchaff-
hausen:TaxInspector;
1986 – 1988RefidarMooreSte-
phens,Zurich:TaxConsultant,
DeputyHeadTaxConsultancy
Department;1988 – 1994Cer-
berusAG,Männedorf:Group
Controller;1992AlsoManaging
DirectorCerberusDenmark;
1998IMDLausanne(SSE);
1995 – 1999GeorgFischerAG,
Schaffhausen:HeadofCorporate
Controlling;laterHeadofFinance
andControllingPipingSystems
Division;1999 – 2003Mövenpick
Holding,Adliswil:CFO,Group
ExecutiveCommittee;2003 – 2011
RieterHoldingAG,Winterthur:
CFOandHeadCorporateCen-
ter,GroupExecutiveCommittee;
2011 – 2014AutoneumHolding
AG,Winterthur:CFOandDeputy
CEO,GroupExecutiveBoard;
Since 2014Entrepreneurand
since 2016 PartnerAdulco
GmbH,Winterthur
Christina Stercken
Nationality: Germany | Born
1958 | Place of residence:
Munich, Germany | Member
since 2014 | Elected until AGM
in 2017
1982MasterinEconomics,Uni-
versityofBonn;1983 – 1984BMW
PtyLtd.,Isando,SouthAfrica:
MarketingConsultant;
1985 – 1987SiemensAG,Munich:
ConsultantStrategicPlanning
andMarketingforCommunica-
tionandInformationTechnology
Group;1988 – 1989SiemensAG,
Munich:ConsultantManagement
ToolsandTraining,Corporate
Development & Strategy;
1989 – 1994SiemensAG,Munich:
SeniorConsultantCorporate
Projects(InhouseConsulting)
CorporateDevelopment & Strate-
gy;1994 – 1995SiemensAG,
Munich:HeadofRegionalStrate-
gy,CorporateDevelopment &
Strategy;1995 – 1997Siemens
Ltd.China,Beijing:Headof
TaskForceChina;1998 – 2000
SiemensBusinessServices
GmbH & OHG,Munich:Headof
BusinessUnitPublicSector;
2000 – 2006SiemensAG,
Munich:ManagingDirectorCor-
porateFinance,Mergers & Acqui-
sitions;Since 2006EAC – Euro
AsiaConsultingPartG,Munich,
Shanghai,Mumbai,andMoscow:
Partner
Andreas Umbach
Nationality: Switzerland/
Ger many | Born 1963 | Place of
residence: Zug, Switzerland |
Member since 2010 | Elected
until AGM in 2017
1989MasterinMechanicalEngi-
neering,TechnischeUniversität
Berlin;1991MasterofBusiness
Administration(MBA),University
ofTexas,AustinTX;1991 – 1995
ManagementAudit,Corporate
PlanningandDevelopingDepart-
ment,SiemensAG,Munich;
1995 – 1999CommercialManag-
er,BusinessUnitPilotandSens-
ingDevices,DrivesandAuto-
mationGroup,SiemensAG,
Erlangen,Germany;1999 – 2002
GeneralManager,subsequently
divisionPresidentofMetering,
PowerTransmissionandDistri-
butionGroup,SiemensMetering
AG,Zug;Since 2002President &
CEO,Landis+GyrGroup,Zug
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20 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Mandates outside the Ascom Group
(profit-oriented)
Mandates outside the Ascom Group
(non-profit-oriented)
JuhaniAnttila,Chairman
ActelionLtd.,AllschwilBL 1
AgrifuturaOy,Eura (Finland)
ValcreaAG,Zug
Anttila & Co.Advisors,Zug
DiamondCircleFoundation,Zug
DrJ.T.Bergqvist HuurreGroupOy, Vantaa(Finland)
RedlaIndustriförvaltningAb,Helsinki(Finland)
J.T.BergqvistOy,Helsinki(Finland)
None
DrValentin ChaperoRueda
GoldbachGroupAG, KüsnachtZH1
QuoAG,OpfikonZH
ValameroHoldingAG, Willenb.Wollerau(including
2mandatesinaffiliatedGroupcompanies)
None
DrHaraldDeutsch None None
UrsLeinhäuser BurckhardtCompressionHoldingAG,Winterthur 1 (including2mandatesin affiliatedGroupcompany)
LiechtensteinischeLandesbankAG,Vaduz,
Liechtenstein 1
AmmannGroupHoldingAG,Berne
(including1mandatein affiliatedGroupcompany)
VATGroupAG,HaagSG1
Universität St.Gallen, InstitutIFF, St.Gallen
ChristinaStercken EAC–EuroAsiaConsultingPartG,Munich(Germany) (including3mandatesin
affiliatedGroupcompanies)
Amara Foundatione.V.,
Munich(Germany)
AndreasUmbach Landis + GyrAG,Zug
WasserwerkeZugAG,Zug 1
Wirtschaftskammer,Zug(Chairman)
1 Publiclylistedcompanies.
Self-evaluation of the Board of DirectorsSince2005,theBoardofDirectorshascarriedoutaself-evaluationatyear-endonthebasisofastandard-ized process using a comprehensive questionnaire.Theresultsarediscussedinthefirstquarterinthenextyear,andanymeasuresnecessaryfor improvementsareagreedandimplementedasrequired.
Committees of the Board of DirectorsTosupporttheefficientandeffectiveorganizationofitsduties, theBoardofDirectorshassetupastructurewithtwopermanentcommitteeswhoseprimaryroleisto preparematerials as a basis for decisions by theBoardofDirectorsinspecializedareas.Thetwoper-manentcommitteesaretheAuditCommitteeandtheCompensationCommittee.Theauthoritytomakedeci-sionslieswiththeBoardofDirectors.AllmembersoftheBoardareentitledtoattendanymeetingsofthesecommittees.
ThenominationofcandidatesforelectiontotheBoardofDirectorsandtheselectionofcandidatesforappointment to theExecutiveBoardandasHeadofCorporateFunctionsaredonebytheentireBoard.
Audit Committee Members: Urs Leinhäuser (Chairman), Dr Valentin Chapero Rueda and Christina SterckenTheBoardofDirectorselects themembers and thechairmanoftheAuditCommitteeforatermofofficeofoneyearuntiltheclosingoftheordinaryGeneralMeet-ingfollowingtheelection.
TheAuditCommitteeiscomposedofthreenon-executivemembersoftheBoardofDirectorsandgen-erallymeetsfourtimesayear(atleastonemeetingperquarter),althoughtheChairpersonmayconvenemeet-ingsasoftenasbusinessrequires.SevenAuditCom-mitteemeetingswereheld in2016,generally lastingseveralhours,whereoftheexternalauditorsattendedfive.Committeeattendancewas94.7%.TheChairmanoftheBoardofDirectorsaswellat theCEOandtheCFOattendedallmeetings.TheSecretaryoftheBoardof Directors prepares themeetings and records theminutes.ThefullBoardofDirectorsiskeptinformedoftheAuditCommittee’sactivitiesfollowingeachmeet-ing,andreceivesacopyoftheminutes.
The Audit Committee’s main activities are:■■ Internalcontrol■■ Financialreporting■■ Financemanagement■■ Riskmanagement■■ Taxmanagement■■ Externalauditing■■ Compliance■■ Litigationmatters
Compensation Committee Members: Andreas Umbach (Chairman), Dr J.T. Bergqvist and Dr Harald DeutschAccordingtotheArticlesofAssociation, theGeneralMeeting elects the members of the CompensationCommitteeindividuallyforatermofofficeofoneyearuntil theclosingof theordinaryGeneralMeetingfol-lowing the election. The Compensation Committeeconsistsofatleasttwoandnotmorethanthreemem-bersof theBoardofDirectors. TheChairmanof theCompensationCommitteehastobeindependent.HeiselectedbytheBoardofDirectors.Intheeventthatthe Compensation Committee has fewer membersthanthenumberofmemberselectedbythelastGen-eral Meeting and is therefore not fully staffed, theBoardofDirectorselectsthemissingmembersfortheremainingterm.
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21ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
■■ Defining the internal audit and submitting the pro-posaltotheAnnualGeneralMeetingforelectionoftheauditors
■■ Submitting proposals on dividends to the AnnualGeneralMeeting
■■ Issuingandimplementinglong-termincentiveplans
Information and control instruments in respect of the Executive Board/management instruments TheAscomGroup’smanagementinformationsystem(MIS)consistsofmanagementreportingandfinancialconsolidation.
Each month, the balance sheet, income state-ment, incomingorders,orderbacklogandemployeeheadcountfortheindividualcompaniesareenteredinthemanagementreportingsystem.ThisinformationisbasedontheregulationandaccountingstandardsandconsolidatedforthevariousdivisionsandfortheGroupasawhole,andcomparedagainstthepreviousyear’sfiguresandthecurrentbudget.TheExecutiveBoarddiscussestheresultsindetailonamonthlybasisanddecidesonactionstobetaken.
Full financial consolidation (including cash flowstatement) incompliancewith the regulationandac-countingstandardsisperformedonaquarterlybasis.
Financial reports are submitted to the Board ofDirectorsonamonthlybasis.Additionalmanagementinstrumentsformonitoringmanagementprocessesin-clude strategic medium-term planning (MTP), annualplanningandquarterlyforecasts.
Aquarterlyreportonpendinglawsuitsissubmit-tedtotheAuditCommittee.AspartofBusinessRiskandOpportunityManagement(BROM),anupdatedriskmapfortheGroupandtheindividualdivisionsissub-mittedtotheBoardofDirectorsonasemi-annualba-sis. Themeetings of theBoard ofDirectors and theAuditCommitteeareattendedbytheCEOandCFOaswell as, whenever necessary, by other members ofManagement.
Internal auditTheGroupdoesnothavean in-house internal auditfunction.TheBoardofDirectorsempoweredtheAuditCommitteetomandateanexternalauditfirmtocarryoutspecialfocusaudits,asneeded.Accordingly,suchinternal audits are conducted from time to time asmandated by the Audit Committee. During 2016, nospecialfocusauditshavebeencommissioned.Internalaudit fees are based on the scope of services rendered. Fees incurred in 2016 were nil (2015: CHF80,000).
The Compensation Committee is composed ofthreenon-executivemembersof theBoardofDirec-torsandisconvenedbytheChairpersonasoftenasbusinessrequires.Sevenmeetingswereheldin2016.Committeeattendancewas100%.TheChairmanoftheBoardattendedthreemeetingsin2016.TheCEOat-tendedthemeetingsasandwhenrequired.TheSec-retaryoftheBoardofDirectorspreparesthemeetingsandrecordstheminutes.ThefullBoardofDirectorsiskept informedof theCompensationCommittee’sac-tivitiesfollowingeachmeeting,andreceivesacopyoftheminutes.
AmajortaskoftheCompensationCommitteeistopreparetheresolutionoftheBoardofDirectorscon-cerningthecompensationofthemembersoftheBoardofDirectorsandthemembersoftheExecutiveBoardtobeapprovedbytheAnnualGeneralMeeting.Toful-fill itsduties,theCompensationCommitteemaycon-sult other persons and external consultants for sup-port.In2016,theCompensationCommitteemandatedanexternalconsultantinconnectionwiththeassess-mentoftheBoardfees.
Othermain fields ofwork of theCompensationCommitteeshallconsistofmakingrecommendationstotheBoardinrelationto
■■ AscomGroupremunerationpolicies■■ FixingcompensationmodelsfortheBoardofDirec-torsandtheTopManagement
■■ Implementationandmonitoringof long-term incen-tiveplans
Areas of responsibilityTheBoardofDirectorshasdelegatedtheoperationalmanagementof theCompany and theentireAscomGroup to theCEOunless otherwise requiredby thelaw, the Articles of Association or the OrganizationRegulations. The CEO, together with the ExecutiveBoard, is responsible for theoverallmanagement oftheAscomGroup.
The Board of Directors explicitly reserves thepowertodecideonthefollowingmatters:
■■ Authorizingimportantacquisitionsanddivestments■■ AppointinganddischargingmembersoftheExecu-tiveBoardandtheTopManagement
■■ Definingcompensationmodels formembersof theBoardofDirectorsandtheExecutiveBoard(subjecttotheapprovaloftheAnnualGeneralMeeting),andtheTopManagement
■■ Approvingthebudget■■ Arranging public bonds and important frameworkcreditagreements
■■ Substantialinvestments■■ Issuing theOrganizationRegulations and their An-nexes
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22 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Risk managementAsaninternationallyactivegroup,Ascomisexposedtoavarietyof risksarising from itsoperations in thenormalcourseofbusiness.Riskmanagementisthere-foreanintegralpartofGroupmanagementandhencepartof thebusinessprocesses.GroupTreasurycen-trallymonitorsfinancialrisks(liquidity,foreigncurrency,interest rate, credit risks) in accordancewith writtenguidelines.Capitalriskisalsomonitoredusingdefinedthresholdsforthedebtratioandtheequityratio.
Further informationonriskmanagementcanbefound in note 28 to the financial statements of the AscomGrouponpage71ofthisAnnualReport.
Internal Control System (ICS)ABoarddirectiveof 11December2008and the ICSmanualgoverntheInternalControlSystem(ICS).TheICSensurestheimplementationofappropriateproce-duresandmeasuresforthepurposeofidentifyingandmonitoringthemainfinancialriskstowhichtheCom-panyisexposed.Inparticular,theaimoftheICSistoensuretheintegrityandcompletenessofaccounting,toprovidetimelyandreliablefinancialreporting,andtoprevent,minimizeandidentifyerrorsandirregularitiesinthefinancialstatements.
Inordertoachievethesetargets,Groupcompa-nies in scope are determined annually. Hereby, it isensuredthatatleast80%oftherevenueandoftotalassetsof theGroupare covered.Theexternal auditconfirms theexistenceof the ICS inconnectionwiththeyear-endaudit.Additionally,externalauditsubmitsimprovementsuggestionsonayearlybasis,whichareimplementedinthefollowingyear.
4. EXECUTIVE BOARD
The Executive Board of the Ascom GroupTheBoardofDirectorshasdelegatedtheoperationalmanagementof theCompany and theentireAscomGroup to theCEOunless otherwise requiredby thelaw, the Articles of Association or the OrganizationRegulations.AsmembersoftheExecutiveBoardareconsideredtheCEOandeach furtherpersonwho isexplicitlyappointedassuchbytheBoardofDirectors.Asarule,membersoftheBoardofDirectorsshallnotbeontheExecutiveBoard.
Composition of the Ascom Executive BoardThe Ascom Group Executive Board comprised the followingmembersasof31December2016:
Executive Board member since
HolgerCordes CEO 01.06.2016
BiankaWilson CFO 01.10.2013
ClaesÖdman COO(formerGeneralManager
WirelessSolutions)
14.06.2011(COOsince 01.10.2016)
FrancisSchmeer HeadofMarketing&BusinessDevelopment
(formerHeadof Strategy&Business
Development)
01.09.2014 (HeadofMarketing&
BusinessDev. since01.10.2016)
Changes in the Executive BoardHolgerCordesreplacedFritzMumenthalerasCEOoftheAscomGroupasof1June2016.
Rikard Lundqvist, formerGeneralManagerNet-workTestingDivision,lefttheCompanyafterthesaleofthedivisionasof30September2016.
Mandates outside the Ascom Group of members of the Executive BoardArticle20dof theArticlesofAssociationdefinesthemandatesoutsidetheAscomGroup:
■■ Members of the Executive Board may occupy or exercise– subject to theapproval of theBoardofDirectors–oneadditionalpositionagainstcompen-sationinthehighestmanagingorsupervisingbodyofotherentitiesthatareobligedtobeenteredintothe commercial register or a comparable foreignregister and that areneither controlledbynor thatcontroltheCompany.
■■ In addition, members of the Executive Board may occupyorexercisethreeuncompensatedpositionsinthehighestmanagingorsupervisingbodyofsuchentities,wherebyexpense recovery isnocompen-sation.
■■ TheChairmanoftheBoardofDirectorsmayexerciseatotalofuptothreepositionsinotherpubliclytradedcompanies.
■■ In addition to these mandates, members of the ExecutiveBoardmayoccupyorexercisenotmorethanfivepositionsinseveraldifferentcompaniesthatformthesamegroupofcompaniesorpositionsthatareheldbasedontheinstructionsoftheCompany.
Mandates outside the Ascom Group
against compensation
Mandates outside the Ascom Group
without compensation
HolgerCordes None None
BiankaWilson None Ascaro Vorsorgestiftung,
Berne 2
ClaesÖdman SensysGatsoGroupAB,Stockholm(Sweden) 1
None
FrancisSchmeer None None
1 Publiclylistedcompany.2PositionheldbasedontheinstructionsoftheCompany.
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23ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
Members of the Executive Board (as of 1 January 2017)
Claes Ödman COO
Nationality: Sweden | Born 1965
1990MasterofScienceinEngi-
neeringPhysicsandMasterof
BusinessAdministration(Chalm-
ersUniversityGothenburg);
1990 – 1994AreaManagerSaab
MarineElectronicsAB,Gothen-
burg;1994 – 1998AreaManager
EricssonRadioSystems,Stock-
holm;1998 – 2001VicePresident
EricssonTaiwanLtd.,Taipei
(Taiwan); 2001 – 2005Presi-
dent & CountryManagerEricsson
TelecomPTELtd.,Singapore;
2005 – 2011VicePresidentErics-
sonAB,Stockholm(2005–2008:
MultimediaSolutions;2008–2009
HeadofSalesandMarketing;
2010HeadofRegionProject;
2010–2011EngagementPractic-
esRegionNorthernEuropeand
CentralAsia);2011 – 2016General
ManagerWirelessSolutions
andmemberoftheExecutive
BoardoftheAscomGroup;Since
1 October 2016COOandmem-
beroftheExecutiveBoardofthe
AscomGroup
Holger Cordes Chief Executive Officer
Nationality: Germany |
Born 1969
1995MasterofEconomicsfrom
UniversitédePoitiers(France);
1997Diplom–Volkswirt(Diplo-
maofEconomics)fromUniversity
ofMarburg(Germany);
1997 – 2000ProjectLeaderSAP/
SeniorFP&AAnalystPaulaner
BrauereiKG,Munich;2000 – 2002
ManagerControllingandProcess
Organization,EuropeanTelecom-
municationsHoldingAG,
Frankfurt/M.;2002 – 2006
RegionalControllerMainland
Europe/DirectorInternational
FinancialPlanningandAnalysis,
AspectSoftware,London;
2007 – 2010FinanceDirector
EMEA,CernerGroup,London;
2010 – 2014GeneralManager
CentralEurope,CernerGroup,
Frankfurt/M.;2014 – 2016 COO
EuropeandLatinAmerica,
CernerGroup,Frankfurt/M.;
Since 1 June 2016CEOand
memberoftheExecutiveBoard
oftheAscomGroup
Bianka Wilson Chief Financial Officer
Nationality: Switzerland/
Germany | Born 1967
1993BachelorofBusiness
AdministrationfromCameron
University,LawtonOK(USA);
1994MasterofProfessional
AccountingfromUniversityof
Texas,AustinTX(USA);
1995 – 2000AuditManager
KPMG,HoustonTX(USA);1997
USCertifiedPublicAccountant;
2000 – 2007SeniorManager
KPMG(TransactionServices,
InternationalAccounting & Report-
ing),Zurich;2007Executive
MBA,KPMGEMBAProgram,
ENPCSchoolofInternational
Management,Paris/Universityof
Edinburgh(UK);2007 – 2013
PartnerofKPMG(Advisory),
Zurich;Since 1 October 2013
CFOandmemberoftheExecu-
tiveBoardoftheAscomGroup
Francis Schmeer Head of Marketing & Business Development
Nationality: USA | Born 1972
1994BachelorofMarketing
GeorgetownUniversity,Washing-
tonDC(USA);1994 – 1999Gold-
manSachs,AssociateNewYork/
London;2001MasterofBusiness
Administration,LondonBusiness
School;2001 – 2003Samsung
Group,GlobalStrategist,Seoul;
2003 – 2005T-MobileInterna-
tional,InternationalMarketing
HeadofSMSandIPMessaging
London/Bonn;2005 – 2006
EmpowerInteractive,Chief
MarketingOfficer,London/Singa-
pore;2006 – 2009SonyEricsson
MobileCommunications,Vice
President & GlobalHeadofStrat-
egyandCorporateDevelop-
ment,London/Lund(Sweden);
2010 – 2013OCOerlikonGroup
ExecutiveVicePresident & Head
ofGroupBusinessDevelopment,
MemberofExecutiveLeadership
Team,Pfäffikon(Switzerland);
2014 – 2016HeadofStrategy &
BusinessDevelopmentand
memberoftheExecutiveBoard
oftheAscomGroup;Since
1 October 2016HeadofMarket-
ing & BusinessDevelopmentand
memberoftheExecutiveBoard
oftheAscomGroup
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24 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
■■ Sole proprietor companies, partnerships and legalentities may be represented persons with written authorizationtoactontheirbehalf.
■■ TheBoardofDirectorsmakestherequisitearrange-mentstodeterminevotingrightsandtoestablishtheresultsofvotesandelections.
Independent RepresentativeAccordingtotheArticlesofAssociation, theGeneralMeeting elects an Independent Representative. ThetermofofficeoftheIndependentRepresentativeendswith theclosingof theordinaryGeneralMeeting fol-lowing the election of the Independent Representa-tive.Re-electionisadmissible.IftheCompanyhasnoIndependent Representative, the Board of Directorsdesignates an Independent Representative for thenextGeneralMeeting.
The Independent Representative is obliged tovotethesharesforwhichheorshereceivedproxiesinaccordancewiththeinstructionsgiven.Ifheorshehasnotreceivedanyinstructionswithrespecttovotes,heorsheabstainsfromvotingtherespectiveshares.Thegeneral instruction formotions containedand/or notcontainedintheinvitationtovoteinlinewiththemotionoftheBoardofDirectorsqualifiesasavalidinstructionfortheexerciseofthevotingright.
TheshareholderselectedattheAnnualGeneralMeetingheldon13April2016FranzMüller,Berne,asIndependentRepresentativeforatermofoneyearun-tilthecompletionoftheAnnualGeneralMeeting2017,andDrAlexanderKernen,Berne,ashisrepresentative.FranzMüller andDrAlexander Kernen are indepen-dent and have no further mandates for the AscomGroup.
AllshareholdershavethepossibilitytoregisterontheSherpanyplatformandtogiveon-lineinstructionstotheIndependentRepresentative(www.ascom.com/en/index/investor-relations/annual-general-meeting.htm).Details of the electronic proxies and voting in-structionstotheIndependentRepresentativeareex-plainedintheinvitationtotheAnnualGeneralMeeting.
Resolutions and electionsTheGeneralMeetingiscapableofpassingresolutionsregardlessofthenumberofsharesrepresented.
Unlessthe lawor theArticlesofAssociationre-quireotherwise,theGeneralMeetingshallpassreso-lutionsandelectionswithanabsolutemajorityofthevotes validly cast, whereby abstentions, blank votesandinvalidvotesshallnotcountasvotescast.
TheBoardofDirectorsshalldefinethevotingpro-cedure.Shareholders representingregisteredshareswithanominalvalueofCHF 100,000may requestasecret ballot. This threshold corresponds to 0.5% of thevotes.
Executive CommitteeTheExecutiveCommitteeisanextendedpanel,whichsupportstheExecutiveBoard.Inadditiontothemem-bersoftheExecutiveBoarditconsistsofthefollowingfurthermembers:
DrJudithBischof GeneralCounsel
DrDanielLack CompanySecretary & Communications/IR
AndréNeu HeadofPlatformSolutions
TimWhelehan ManagingDirectorNorthAmerica
Mode of operation of the Executive BoardAsarule,ahalf-orfull-daymeetingoftheExecutiveBoardisheldonamonthlybasis.Additionalmeetingsorconferencecallsareheldasandwhennecessary.Elevenmeetingswereheldin2016.
Management contractsTherearenomanagementcontractswithintheAscomGroup.
Business relationships with closely related companies and personsNosignificantbusinesstransactionsexistwithcloselyrelatedcompaniesorpersons.
5. COMPENSATION, SHAREHOLDINGS AND LOANS
Alldetailsofcompensation,shareholdingsand loansarelistedintheRemunerationReportonpages27to41tothisAnnualReport.
6. SHAREHOLDERS’ PARTICIPATION RIGHTS
Voting rights and protective rights Shareholders in Swiss public listed companies haveextensiveparticipationandprotectiverightsgovernedinprinciplebytheSwissCodeofObligations(OR)andsupplementedbytherespectiveCompany’sArticlesofAssociation.
Annual General Meeting
Voting rights and representation■■ Eachshareentitlestheholdertoonevoterepresent-edattheAnnualGeneralMeeting.Therearenovot-ingrightrestrictions.
■■ EachshareholdermayberepresentedattheAnnualGeneralMeetingbyathirdpersonwhoisauthorizedasproxyinwritingorbytheIndependentRepresen-tative.
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25ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
According to Article 704 of the Swiss Code of Obligations, the following resolutionsof theGeneralMeetingrequireatleasttwothirdsofthevotesrepre-sentedandtheabsolutemajorityofthenominalvalueof shares represented to be passed: changing theCompany’spurpose;creatingvotingshares;changinglimitations on transferability of registered shares; anauthorizedorconditionalcapitalincrease;acapitalin-creaseoutofequity,againstassetcontributionorforthepurposeofassettakeoverandthegrantingofspe-cialbenefits;limitingorrevokingofsubscriptionrights;relocationoftheCompany’sregisteredoffice;dissolu-tionoftheCompany.
Convocation of the General Meeting The General Meeting is convened by the Board of Directorsor,ifneeded,bytheauditors.
Convocation is effected no later than 30 daysbeforethedateofthemeetingbyasingleannounce-mentintheCompany’spublicationofrecord(theSwissOfficialGazetteofCommerce–SOGC)andbylettertotheregisteredshareholders.
AgendaIn accordancewith Article 699 para. 3 of the SwissCodeofObligations,requeststoplaceanitemontheagendamustbesubmittedtotheBoardofDirectorsnolaterthan45daysbeforethedateoftheGeneralMeet-ing.ThepartysubmittingsuchrequestmustrepresentsharesofatleastCHF100,000parvalue.
Theinvitationtosubmitagendaitemsispublishedinasingleannouncement in theCompany’spublica-tionorgan(theSOGC).
Registration in the share registerAll shareholders recorded in the share register as voting shareholders 10 days before the date of theGeneralMeetingareadmittedtothemeetinganden-titledtovote.
The Board of Directors is empowered to strike entriesfromtheshareregisterwithretroactiveeffect totheregistrationdateif,afterconsultingthepartiesinvolved, it determines that such entries have beenmade based on false information on the part of the acquirer.
ShareholderswhodisposeoftheirsharesbeforetheGeneralMeetingarenolongerentitledtovote.
7. CHANGE OF CONTROL AND DEFENSIVE MEASURES
Obligation to submit a purchase offerTheArticlesofAssociationofAscomHoldingAGcon-tain neither an opting-out nor an opting-up clause (Article125FinancialMarketInfrastructureAct(FMIA)).Any party who acquires one-third (331/3%) of share
capital inAscomHoldingAGisobligedunderArticle135FMIAtosubmitapublicpurchaseofferforthere-mainingshares.
Change of control clausesContractsofemploymentwithmembersoftheExecu-tiveBoard,othermembersoftheExecutiveCommitteeorothermembersoftheseniormanagementprovidefornospecialseverancepayment.
TheperiodofnoticeformembersoftheExecutiveBoardismaximal12months.
IntheeventofatakeoverandadelistingoftheCompany,theparticipantsoftheAscomsharematch-ingplansshallreceivethesamenumberofmatchingsharesastheyhold investmentsharesat thedateofthepublicationofthedelisting.
8. AUDITORS
AuditorsThe auditors are appointed by the Annual GeneralMeeting for a term of one year. Pricewaterhouse-CoopersAG,Zurich(formerlySTG-Coopers & LybrandLtd),haveactedasauditorssince1987.AccordingtotheSwissCodeofObligations,theleadauditorhastoberotatedatleasteverysevenyears.ThomasWallmerisauditor-in-chargesince2015.
Auditing feePricewaterhouseCoopersAGwaspaidcompensationofCHF549,700(previousyear:CHF681,400)forser-vicesinconnectionwithauditingtheannualfinancialstatementsofAscomHoldingAGandtheGroupcom-paniesaswellastheconsolidatedstatementsof theAscomGroupfortheyearended31December2016.
Additional feesPricewaterhouseCoopers AGwas paid the followingadditionalfeesin2016:
Taxconsulting CHF 21,000(previousyear:CHF 17,000)
Miscellaneous CHF119,900(previousyear:CHF 147,000)
Total CHF 140,900(previousyear:CHF 164,000)
The level of the non-audit fees of Pricewaterhouse-CoopersAGamountingtoCHF140,900correspondsto25.6%ofthetotalauditfeesofCHF549.700.
Monitoring and control instrumentsAs a committeeof theBoard ofDirectors, theAuditCommitteeevaluatestheperformance,feesandinde-pendenceoftheexternalauditorseachyear.
The external auditors prepare a detailed audit reportatleastonceayearandreportindetailtotheAuditCommittee.Themainfindingsandrecommenda-
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26 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE
■■ Adhocmediaconferencesandanalystcalls■■ Analyst & InvestorDay■■ AnnualGeneralMeetingofShareholders■■ Roadshowsforinstitutionalinvestors
Media releasesIn accordance with the provisions of the SIX Swiss Exchange,Ascompublishesinformationonanadhocand regular basis. Furthermore, Ascom publishes Ascommediareleasesonsignificantbusinessactivi-tiesandonimportantproductandserviceinnovations.
Online communicationThewebsitewww.ascom.comprovidesacomprehen-siveoverviewof theCompany’sstructureandactivi-tiesandtheofferingsoftheindividualbusinessunits.
All media releases and presentations at mediaconferencescanbedownloadedfromthewebsiteathttp://www.ascom.com/en/index/latest-news-corporate.htm and http://www.ascom.com/en/index/investor-relations/ir-reports-presentations.htm.Mediareleasesmayalsobereceivedbye-mailbysubscribingtotheNewsServiceonthewebsite.
TheArticlesofAssociationofAscomHoldingAG,theOrganization Regulations, a current extract fromtheCommercialRegister, theCodeofBusinessCon-ductandtheshareregistrationguidelinescanalsobedownloaded from the website under “CorporateGovernance”(http://www.ascom.com/en/index/corpo-rate-governance/articles-of-association.htm).Themin-utesofpastAnnualGeneralMeetingsareavailableathttp://www.ascom.com/en/index/investor-relations/financial-calendar/annual-general-meeting.htm.
Implementation of publication requirements under stock exchange regulationsTheBoardofDirectorshasissuedanAnnextotheOr-ganizationRegulationsentitled“CorporatePolicyandProcedureonInsiderTrading”,whichinparticularpro-hibits Ascom employees and governing bodies of Ascomfromengagingin insidertrading.Anabsolutebanontradingappliesduringaperiodoffourweekspriortothepublicationoftheannualresultsandhalf-yearresults.
Informationonmanagementtransactionsispub-lished at https://www.six-exchange-regulation.com/en/home/publications/management-transactions.html.Detailed information on disclosure announcementscan be viewed at https://www.six-exchange-regula-tion.com/en/home/publications/significant-sharehold-ers.html.
Dates and contactsAlistofimportantdatesin2017andCorporateCom-munications and Investor Relations contacts is pro-videdonpage93ofthisAnnualReport.
tions contained in the audit reports of the external auditorsarethendiscussedindetailwiththeCFO.
In2016,theexternalauditorsdrewuptwodetailed managementreports(fortheHalf-YearReportandtheAnnualReport).TheexternalauditorsattendedfiveoftheAuditCommitteemeetingsheldin2016.
Each year, the Board of Directors reviews the selectionofauditorsinordertoproposethemtoshare-holdersforappointmentattheAnnualGeneralMeet-ing.Theaimistoensurethegeneralindependenceoftheauditorsaswellasthepersonalindependenceoftheauditor-in-chargeanddeterminetheirunderstand-ingofAscom’sbusinessactivitiesandthespecificbusi-nessrisksrelevantforAscom,thenatureofcollabora-tion between the external auditors and the AuditCommittee, and the manner in which support isprovidedforimplementationofthelegalprovisionsaswellas requirements fromregulationandaccountingstandards(SwissGAAPFER).
TheAuditCommitteeassessestheeffectivenessoftheauditorsincompliancewiththelegalprovisionsinSwitzerland.TheBoardofDirectorsbasestherota-tion cycle for the auditor-in-charge on the relevantprovisionsoftheSwissCodeofObligations,accordingtowhichtheauditor-in-chargemayperformthisman-datefornomorethansevenyears.
TheAuditCommitteealsoexaminestheratiobe-tweenthefeefortheannualauditandfeesforaddi-tionalservicesperformedbytheauditors,inordertoensurethattheauditors’independenceisnotimpaired.Forthe2016reportingyear,theBoardofDirectorscon-cluded that theauditors’ independencewas fullyas-sured.
9. INFORMATION POLICY
TheBoardofDirectorsandtheExecutiveBoardhaveundertakentoaligntheirorganizationalstructurewiththelatestcorporategovernancestandards.
Ascom’s informationpolicy isbasedoncommit-menttoahighdegreeoftransparencyandequaltreat-mentofallstakeholdergroups.CorporateCommunica-tionscomeundertheremitoftheCompanySecretary.Ascomprovidesawiderangeofcommunicationtoolstokeepitsshareholders,themedia,analystsandotherstakeholdergroupsinformed:
Publications■■ AnnualReport■■ Half-YearReport■■ TheofficialpublicationorganistheSwissOfficialGazetteofCommerce(SOGC)(www.shab.ch)
Events■■ AnnualMediaConferenceandHalf-YearMedia Conferenceformediarepresentativesandanalysts
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