Criticism of Group management Wave of indignation over Axpo bonuses - now the canton is taking action

Record profits, doubled CEO remuneration and growing criticism. Axpo is under political pressure due to high bonuses and a lack of transparency in its remuneration policy. The cantonal government of Aargau is planning initial measures.

Record profits, record bonuses - and growing criticism: Axpo Holding AG may have achieved an overall result of CHF 1.6 billion with its successful 2023/2024 financial year, but the high remuneration for the Executive Board is causing discontent. The focus is particularly on the CEO's increased bonus, which has almost doubled.

Now the canton of Aargau is reacting, as was announced on Friday morning. The cantonal government is calling for the owners to have a say in remuneration and is planning initial measures.

At Axpo's Annual General Meeting on January 17, 2025, a motion to amend the company's Articles of Association is to be submitted. In future, it will no longer be the Board of Directors alone that decides on the remuneration of the Executive Board and Board of Directors, but the Annual General Meeting.

This would give the owners - including the canton of Aargau - a greater say. If the change is approved, it would apply for the first time for the 2025/2026 financial year.

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According to the press release, this measure is based on the Public Corporate Governance (PCG) guidelines of the canton of Aargau, which provide for the approval of remuneration by the General Meeting for state-related companies.

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Despite the impressive business figures, the cantonal government is critical of the high bonuses. Axpo's CEO received remuneration of CHF 1.548 million last year - a significant increase on the previous year's CHF 889,000. The other members of the Executive Board also benefited from some large additional payments.

The timing of the bonus payments in particular is met with incomprehension. Until recently, Axpo was under the federal government's rescue umbrella, which prohibited bonus payments. Although the company ultimately did not claim the state aid, the Government Council criticizes that the record remuneration could give the impression of retrospective compensation for lost bonuses.

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"We expect a state-dominated company to be more sensitive to politics, the economy and the population," emphasizes the Government Council. Similar demands have been repeatedly made to Axpo in discussions and letters - so far without resounding success.

Increasing political pressure

The controversial bonuses have now also reached the political level. A motion signed by all parliamentary groups in the Aargau cantonal parliament calls for a cap on the total remuneration of Axpo's Executive Board. The cantonal government will take a position on this motion shortly.

Christoph Schneider, the local councillor responsible, emphasizes that the planned amendment to the Articles of Association is also in line with the governance rules already drawn up by the shareholders. However, implementation has been delayed due to the Schaffhausen population's "no" to the replacement of the NOK contract in August 2024.

Despite the controversy, the cantonal government emphasizes Axpo's importance for the Swiss energy supply. Last year, the company supplied more than 40% of the electricity consumed in the country and has stabilized after difficult market changes. Nevertheless, the cantonal government warns that economic success must go hand in hand with an appropriate and transparent remuneration policy.