Ascom Corporate Governance Report 2016 · PDF file12 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE ... the SIX Swiss Exchange Swiss Reporting Standard un- ... Ascom Corporate Governance

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*

E_00_IH_GB16_Berichtsteil_(Layout_CC14) _P_-gelöst.indd 12 01.03.17 07:44

13ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE

TheAscomTopManagement

LTR:DanielLack,JudithBischof,TimWhelehan,HolgerCordes,ClaesÖdman,BiankaWilson,AndréNeu,FrancisSchmeer.



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%



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.



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



■■ 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.



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



Urs Leinhäuser

Nationality: Switzerland | Born


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


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



Mandates outside the Ascom Group

(profit-oriented)


(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.



■■ 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



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.


against compensation


without compensation

HolgerCordes None None

BiankaWilson None Ascaro Vorsorgestiftung,

Berne 2

ClaesÖdman SensysGatsoGroupAB,Stockholm(Sweden) 1

None

FrancisSchmeer None None

1 Publiclylistedcompany.2PositionheldbasedontheinstructionsoftheCompany.



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


oftheAscomGroup;Since

1 October 2016HeadofMarket-

ing & BusinessDevelopmentand


oftheAscomGroup



■■ 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.



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-



■■ 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


Documents

Ascom Corporate Governance Report 2016 · PDF file12 ASCOM ANNUAL REPORT 2016 CORPORATE GOVERNANCE ... the SIX Swiss Exchange Swiss Reporting Standard un- ... Ascom Corporate Governance