Swiss CEO Compensation Surges 7.4% in 2024

Swiss executive compensation has reached a significant milestone in 2024, with CEO salaries surging to pre-2014 levels. According to the latest Ethos Foundation study, the average compensation for Swiss CEOs rose by 7.4% to reach CHF 8.3 million ($10.2 million). This remarkable increase was primarily driven by variable components including bonuses, shares, and stock options, reflecting strong market performance post-pandemic. Leading the pack is Flemming Ornskov, CEO of American-Swiss pharmaceutical company Galderma, who earned an impressive CHF 19 million in 2024.

The compensation surge has been observed across different market segments, with particularly notable increases in medium-sized enterprises. CEOs of small businesses listed on the SPI saw their compensation rise by 5.5% to CHF 1.5 million, while leaders of medium-sized companies experienced a dramatic 37.4% increase, reaching CHF 4.3 million. This significant disparity in growth rates highlights the evolving dynamics of executive compensation across different business scales in Switzerland.

In the global context, Swiss executives maintain their position among the highest-paid corporate leaders. The study reveals that CEOs of Switzerland's top 20 SMI-listed companies rank among Europe's best-compensated executives, surpassed only by their counterparts in the United States, Canada, and the United Kingdom. Notably, Swiss board chairpersons have achieved a distinctive position, ranking among the highest-paid globally, underlining Switzerland's competitive stance in executive compensation.

The substantial increase in executive compensation reflects a robust post-pandemic recovery in Swiss corporate performance. While executive pay remains a topic of discussion at annual general meetings, the study notes decreasing criticism from shareholders, who are increasingly approving larger compensation packages. This trend suggests a shifting attitude towards executive remuneration in Swiss corporate culture, though it continues to raise questions about wage inequality and corporate governance standards.