Share-based payments

In CHF million   2013   2012
Share-based payments Management Incentive Plan   2   2
Other share-based payments   4   4
Total expense of share-based payments   6   6

Management Incentive Plan

The Management Incentive Plan is an equity-share plan for members of the Group Executive Board and Board of Directors. A part of the remuneration and of the variable earnings-related compensation of the members of the Board of Directors as well as the Group Executive Board, respectively, is settled in the form of Swisscom shares. The shares are allocated based on their tax values. The level of the earnings-related compensation and the number of shares allocated are determined in the subsequent business year once the financial statements are finalised. The shares allocated to the members of the Group Executive Board are based on the variable earnings-related compensation of the prior year as reported. The tax value per share amounts to CHF 371 (prior year: CHF 310). The shares are subject to a retention period of three years from the grant date. The shares are vested immediately upon delivery.

The allocation and cost of share-based payments to the members of the Board of Directors and of the Group Executive Board may be analysed as follows:


Allocation 2013
  Number
of allocated
shares
  Market
price
in CHF
 
Expense in
CHF million
Members of the Board of Directors   1,667   442   0.7
Members of the Group Executive Board 1   2,707   442   1.2
Total 2013   4,374   442   1.9
1 Allocation for the financial year 2012.

Allocation 2012
  Number
of allocated
shares
  Market
price
in CHF
 
Expense in
CHF million
Members of the Board of Directors   1,927   361   0.7
Members of the Group Executive Board 1   2,844   361   1.0
Total 2012   4,771   361   1.7
1 Allocation for the financial year 2011.

Other share-based payments plans

As recognition for exceptional services rendered during the financial year, equity share premiums may be awarded to a maximum of 10% of managerial employees and those employees covered by the collective employment agreement. In 2013, 10,270 shares with a market price of CHF 442 per share were issued gratuitously and an expense of CHF 4 million was recorded. In the prior year, 10,692 shares with a market price of CHF 361 were issued gratuitously for exceptional services rendered and an expense of CHF 4 million was recorded.