6 Employees
6.1 Personnel expenses
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Wages and salaries | 3 579 | 3 664 | ||
| Social security expenses | 507 | 482 | ||
| Cost of defined benefit plans | 59 | 48 | ||
| Cost of defined contribution plans | 92 | 92 | ||
| Share-based payments | 34 | 23 | ||
| Other personnel expenses | 79 | 83 | ||
| Total personnel expenses | 4 350 | 4 392 | ||
| Number of employees | 67 381 | 69 326 |
Previous year comparative information has been adjusted to reflect a reclassification between the line items Wages and salaries and Social security expenses. The reclassification had no impact on total personnel expenses.
6.2 Post-employment benefits
Defined contribution plans
Contributions are paid to publicly or privately administered pension plans on a statutory, contractual, or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as personnel expenses. No assets or liabilities are recognized in the consolidated balance sheet.
Defined benefit plans
Defined benefit plans are covered by funds from separate legal entities or are funded directly by the Group. The aggregate of the present value of the defined benefit obligation and the fair value of plan assets for each plan is recognized in the balance sheet as a net employee benefit liability or a net employee benefit asset. The defined benefit obligation is determined annually by independent actuaries using the projected unit credit method. Plan assets are not available to the Group’s creditors.
Pension costs consist of service costs, net interest, and remeasurements of employee benefits. Service costs are recognized as personnel expenses, net interest is recognized in the financial result, and remeasurement gains and losses from the actuarial valuation are recognized in OCI.
The Group’s largest defined benefit plans are in Switzerland and the USA. Together, these plans account for 90% of the Group’s total defined benefit obligation and 97% of its plan assets (previous year: 90% and 97%, respectively). Further information on the two plans is presented below:
| 2025 | 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| In CHF million | Switzerland | USA | Switzerland | USA | ||||
| Fair value of plan assets | 2 557 | 70 | 2 505 | 101 | ||||
| Asset ceiling | –422 | –304 | ||||||
| Present value of defined benefit obligation | 2 113 | 108 | 2 179 | 144 | ||||
| Net defined benefit asset/liability | 22 | –38 | 22 | –43 | ||||
In the reporting year, the lower return on plan assets was offset by a higher discount rate used for the measurement of the defined benefit obligation. As a result, the asset ceiling in the Swiss pension plan increased. The net defined benefit asset equal to the employer contribution reserve remains unchanged at CHF 22 million (previous year: CHF 22 million). The impact of the change in the asset ceiling of CHF –115 million is recognized in OCI (previous year: CHF –4 million).
Unfunded defined benefit plans mainly exist in Austria, France, Germany, and the USA.
Pension plan in Switzerland
The pension plan is governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG), which states that pension plans are to be managed by independent, separate legal entities. It also stipulates that a pension plan’s most senior governing body, the Board of Trustees, must be composed of equal numbers of employee and employer representatives. Plan participants are insured against the financial consequences of old age, disability, and death.
The insurance benefits are subject to regulations, with the BVG specifying the minimum benefits that are to be provided. The final funded status according to the BVG is determined in the first quarter of the following year. According to estimates, the funded status as of December 31, 2025, is 124% (previous year’s estimate: 124%, final status: 125%). Actuarial reports are prepared annually in accordance with BVG requirements.
The Schindler Pension Fund has the legal structure of a foundation. All actuarial risks are borne by the foundation. They consist of demographic risks and financial risks and are regularly assessed by the Board of Trustees. Demographic risks include life expectancy, while financial risks comprise discount rates, future salary increases, and the return on plan assets. The Board of Trustees defines the investment strategy based on a long-term target asset structure with the aim of ensuring that plan assets and liabilities are aligned in the medium and long term.
Pension plan in the USA
The Schindler Elevator Corporation Retirement Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), which defines minimum standards, such as the plan’s statutory minimum funded status. Plan participants are insured against the financial consequences of old age, disability, and death. Contributions to the pension plan are paid entirely by Schindler Elevator Corporation. Pension entitlements are, to a large extent, insured with the government’s Pension Benefit Guaranty Corporation. The final funded status for the reporting year is determined in the second quarter of the following year. According to estimates, the funded status as of December 31, 2025, is 80% (previous year’s estimate: 83%, final status: 83%). Actuarial reports are prepared annually in accordance with ERISA requirements.
The Benefits Committee (BC) is responsible for the internal structure and supervision of the plan. This committee consists of employees of Schindler Elevator Corporation, the majority of whom are members of the Executive Board. The assets are held in a separate legal entity. Since the plan was frozen in 2018, no additional benefit have been granted to active participants. Instead, retirement benefits to employees are provided through a defined contribution plan pursuant to Internal Revenue Code 401(k).
Changes in net defined benefit obligation
| 2025 | 2024 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In CHF million | Defined benefit obligation | Fair value of plan assets | Asset ceiling | Net defined benefit obligation | Defined benefit obligation | Fair value of plan assets | Asset ceiling | Net defined benefit obligation | ||||||||
| January 1 | –2 570 | 2 683 | –304 | –191 | –2 440 | 2 554 | –296 | –182 | ||||||||
| thereof arising from funded pension plans | –2 382 | 2 683 | –304 | –3 | –2 265 | 2 554 | –296 | –7 | ||||||||
| thereof arising from unfunded pension plans | –188 | –188 | –175 | –175 | ||||||||||||
| Service costs | ||||||||||||||||
| Current service costs | –56 | –56 | –48 | –48 | ||||||||||||
| Past service costs | –3 | –3 | – | – | ||||||||||||
| Net interest on employee benefits | –37 | 32 | –3 | –8 | –43 | 39 | –4 | –8 | ||||||||
| Total recognized in the income statement | –96 | 32 | –3 | –67 | –91 | 39 | –4 | –56 | ||||||||
| Actuarial gains (+) / losses (–) | ||||||||||||||||
| Changes in demographic assumptions | – | – | –1 | –1 | ||||||||||||
| Changes in financial assumptions | 79 | 79 | –84 | –84 | ||||||||||||
| Experience adjustments | –59 | –59 | –47 | –47 | ||||||||||||
| Return on plan assets (excluding interest income) | 86 | 86 | 129 | 129 | ||||||||||||
| Change in asset ceiling | –115 | –115 | –4 | –4 | ||||||||||||
| Total remeasurements recognized in OCI | 20 | 86 | –115 | –9 | –132 | 129 | –4 | –7 | ||||||||
| Exchange differences | 30 | –20 | 10 | –14 | 12 | –2 | ||||||||||
| Total recognized in OCI | 50 | 66 | –115 | 1 | –146 | 141 | –4 | –9 | ||||||||
| Employee contributions | –45 | 45 | – | –46 | 46 | – | ||||||||||
| Employer contributions | 50 | 50 | 51 | 51 | ||||||||||||
| Benefits paid | 177 | –158 | 19 | 154 | –148 | 6 | ||||||||||
| Settlements | 16 | –16 | – | |||||||||||||
| Business combinations | – | – | – | –1 | – | –1 | ||||||||||
| Disposal of subsidiaries | 6 | 6 | ||||||||||||||
| Total contributions and other impacts | 154 | –79 | 75 | 107 | –51 | 56 | ||||||||||
| December 31 | –2 462 | 2 702 | –422 | –182 | –2 570 | 2 683 | –304 | –191 | ||||||||
| thereof arising from funded pension plans | –2 281 | 2 702 | –422 | –1 | –2 382 | 2 683 | –304 | –3 | ||||||||
| thereof arising from unfunded pension plans | –181 | –181 | –188 | –188 | ||||||||||||
| Present value of other employee benefits | –24 | –26 | ||||||||||||||
| Total | –206 | –217 | ||||||||||||||
| thereof employee benefit assets | 25 | 25 | ||||||||||||||
| thereof employee benefit liabilities | –231 | –242 | ||||||||||||||
The weighted average duration of the defined benefit obligation is 12.3 years (previous year: 12.3 years).
For the reporting year 2026, the Group expects to pay employer contributions of CHF 46 million to the pension plan in Switzerland, and CHF 12 million to all other plans.
Allocation of plan assets
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Equity instruments | 825 | 794 | ||
| Debt instruments | 560 | 559 | ||
| Real estate | 793 | 775 | ||
| Private equity instruments | 242 | 236 | ||
| Cash and cash equivalents | 58 | 109 | ||
| Other assets | 224 | 210 | ||
| Total | 2 702 | 2 683 |
Equity instruments, debt instruments, and cash and cash equivalents are generally valued according to quoted prices in active markets. Other assets generally do not have quoted market prices available. The item Other assets includes commodities and insurance-linked securities.
Cash outflows arising from pension payments and other obligations can be reliably forecast. Contributions to funded pension plans are made on a regular basis. The investment strategies are designed to ensure that the pension plans maintain sufficient liquidity at all times. The Group does not make use of any assets held by pension plans.
Significant actuarial assumptions
The present value of the defined benefit obligation is determined annually by independent actuaries using the projected unit credit method.
The discount rate, the future increase in salaries, and life expectancy were identified as significant actuarial assumptions for the pension plan in Switzerland. For the pension plan in the USA, only the discount rate and life expectancy are considered significant actuarial assumptions, as the plan is frozen and no additional benefit accruals are provided to active participants.
The significant assumptions are as follows:
| 2025 | 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| Switzerland | USA | Switzerland | USA | |||||
| Discount rate in % | 1.3 | 5.2 | 1.0 | 5.5 | ||||
| Increase in salaries in % | 1.2 | 1.2 | ||||||
| Life expectancy 65-year-old male in years | 22 | 21 | 22 | 21 | ||||
| Life expectancy 65-year-old female in years | 24 | 23 | 24 | 23 | ||||
The life expectancy assumptions for Switzerland are based on the mortality table BVG 2020 CMI 1.25% (previous year: BVG 2020 CMI 1.25%) and the assumptions for the USA are based on the mortality table PRI-2012 FG + MP2021 (previous year: PRI-2012 FG + MP2021).
Changes in actuarial assumptions would have the following impacts on the defined benefit obligation:
| 2025 | 2024 | |||
|---|---|---|---|---|
| Discount rate | ||||
| 0.25% increase | –3.1% | –3.0% | ||
| 0.25% decrease | 3.1% | 3.0% | ||
| Increase in salaries | ||||
| 1.00% increase | 1.3% | 1.4% | ||
| 1.00% decrease | –1.3% | –1.4% | ||
| Life expectancy | ||||
| 1 year increase | 2.8% | 2.9% | ||
| 1 year decrease | –2.8% | –2.9% | ||
The sensitivity analysis is based on reasonably possible changes as of December 31, 2025. Each change in a significant actuarial assumption was analyzed separately. Interdependencies were not considered.
6.3 Share-based payments
Share-based payments are measured at fair value at the grant date. The related personnel expenses are subsequently recognized over the vesting period with a corresponding increase in equity based on the number of shares expected to vest including any subsequent true-ups.
Share-based payments are settled with treasury shares. No additional registered shares or participation certificates are issued.
The Group has the following share-based payment plans in place:
| Plan | Year of implementation | Instruments granted | Beneficiaries | |||
|---|---|---|---|---|---|---|
| Performance Share Plan (PSP) | 2013 | Registered shares or participation certificates | Members of the Supervisory and Strategy Committee | |||
| Bonus Share Plan (BSP) | 2013 | Registered shares or participation certificates | Group senior management (approximately 500 employees) | |||
| Deferred Share Plan (DSP) | 2015, 2023 | Performance Share Units (PSUs) | Group Executive Committee | |||
| Long-term Incentive Plan (LTI) | 2023 | Performance Share Units (PSUs) | Selected senior managers (approximately 170 employees) |
Performance and Bonus Share Plans (PSP and BSP)
The Board of Directors determines the specific conditions and the beneficiaries of the plans, including the provisional number of shares granted and the applicable vesting conditions. Vesting conditions are service-related and targets are based solely on non-market performance conditions. The allocated shares are transferred to the ownership of the beneficiaries once the vesting conditions have been met and include all associated rights. The shares are subject to a three-year restriction period following their grant, during which the beneficiaries may not dispose of them.
In the reporting year, a provisional number of 62 018 shares was granted under the plans at their grant date fair value of CHF 249 per share. The final number of shares will be allocated in April 2026 based on the extent to which bonus targets are achieved.
In April 2025, personnel expenses were adjusted based on the final allocation of 60 885 shares for the previous year, at their grant date fair value of CHF 212 per share.
Deferred Share Plan (DSP) 2015/2023 and Long-term Incentive Plan (LTI)
The Board of Directors determines a number of Performance Share Units (PSUs) to be granted based on a target amount. Each PSU gives the beneficiary the right to a still-to-be-determined number of shares. At the start of each reporting year, a combination of growth, profitability, and ESG targets is set for the next three years. The targets are based solely on non-market performance conditions. After the three-year vesting period, the achievement of those targets is determined, and the PSUs are converted at a conversion rate of between 0% and 300%. For the DSP, the maximum value of the converted shares is three times the target amount. The converted shares are transferred to the ownership of the beneficiaries and include all associated rights. In the event of any qualified breaches of the Schindler Code of Conduct, the beneficiary forfeits the right to have the PSUs converted.
In the reporting year, 19 246 PSUs were granted under the DSP and 35 062 PSUs were granted under the LTI (previous year: DSP 21 335 PSUs / LTI 41 300 PSUs). The grant date fair value of the PSUs allocated under both plans amounts to CHF 223 (previous year: CHF 196), determined as the share price at grant date less the present value of expected dividends over the vesting period.
6.4 Key management compensation
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Salaries | 23 | 19 | ||
| Contributions to pension plans and social security benefits | 5 | 4 | ||
| Share-based payments | 7 | 8 | ||
| Total | 35 | 31 |
The table shows the compensation granted to the executive members of the Board of Directors and the members of the Group Executive Committee. It includes both fixed and performance-based variable compensation, as well as lump-sum expenses.
Additionally, fees and expenses paid to members of the Board of Directors of Schindler Holding Ltd. totaled CHF 3 million in the reporting year (previous year: CHF 3 million).