Management Board compensation - Sonova Annual Report 2025/26

6.2Group Executives Compensation

6.2.1 Compensation awarded for the 2025/26 financial year

As noted earlier, Sonovaʼs basic principle is to adjust fixed or target variable compensation for Group Executives only when necessary and appropriate. Changes may be differentiated based on material increases in role responsibilities. Any adjustments are benchmarked against executive compensation surveys and published data from similarly sized companies.

Highest compensated executive: The highest total compensation for a Group Executive in the 2025/26 financial year was for Eric Bernard, CEO.

The following tables detail compensation for 8 Group Executives in the 2025/26 financial year and 8 Group Executives in the 2024/25 financial year, both including the CEO.

Group Executivesʼ compensation for the Financial Year (audited by external auditors)

in CHF	2025/26
		Fixed base salary	Variable compensation ¹	Fringe benefits	Employer's pension contribution	Total cash compen- sation	Value of PSUs ²	Value of options ³	Total compensation	Employer's social security contribution
Eric Bernard, CEO⁴		750,000	657,246	56,999	90,826	1,555,071	393,750	656,250	2,605,071	55,040
Other Group Executives⁵		3,435,360	1,684,540	231,578	512,795	5,864,273	-	-	5,864,273	346,128
Total		4,185,360	2,341,785	288,577	603,621	7,419,343	393,750	656,250	8,469,343	401,168

The compensation shown in the table above is gross and based on the accrual principle.

1The variable compensation will be paid out only when the Group’s audited financial statements for the financial year have been publicly disclosed by the Group in its consolidated financial statements.

2Fair value per performance share unit (PSU) at grant date: CHF 255.59. The settlement will be determined based on the actual performance achievement prior to the vesting, and the PSUs are blocked after vesting to arrive at the total mandatory restriction period of five years from the grant date.

3Fair value per option at grant date is provided by a third party based on the "Enhanced American Pricing Model” (including the impact of the restriction period based on a “Black-Scholes Model”) of CHF 52.54. The options are blocked after vesting to arrive at the total mandatory restriction period of five years.

4The disclosed compensation for the CEO reflects the total remuneration awarded during the financial year. Prior to his appointment as CEO on September 15 2025, he served as a Group Executive. Annual salary for the CEO is set at CHF 1,000,000.

5The former CEO served in the role until 15 September 2025 and remained employed until 30 September 2025. His compensation for the financial year is included in “Other members.”

in CHF	2024/25
		Fixed base salary	Variable compensation ¹	Fringe benefits	Employer's pension contribution	Total cash compen- sation	Value of PSUs ²	Value of options ³	Total compensation	Employer's social security contribution
Arnd Kaldowski, CEO		921,750	666,799	54,308	107,340	1,750,197	813,750	1,356,250	3,920,197	163,341
Other Group Executives		3,480,631	1,649,711	259,168	459,453	5,848,963	1,284,000	1,284,000	8,416,963	563,430
Total		4,402,381	2,316,510	313,476	566,793	7,599,160	2,097,750	2,640,250	12,337,160	726,771

The compensation shown in the table above is gross and based on the accrual principle.

2Fair value per PSU at grant date CHF 346.86. Fair Value of PSUs provided by a third party based on the Monte Carlo pricing model; this is an appropriately balanced approach, taking account of the possibility of either over- or under-achievement. The settlement will be determined based on actual performance achievement prior to the vesting in June 2028 and the PSUs are blocked after vesting to arrive at the total mandatory restriction period of five years from grant date.

3Fair value per option at grant date provided by a third party based on the "Enhanced American Pricing Model” (including the impact of the restriction period based on a “Black-Scholes Model”) of CHF 80.88. The options are blocked after vesting to arrive at the total mandatory restriction period of five years.

Explanatory comments to the compensation tables

The total compensation of CHF 8.469 million for the 2025/26 financial year is below the total of CHF 12.337 million for the previous year. A key contributing factor of the decrease here is the deferral of the EEAP award from 1 February 2026 to 1 June 2026 for the majority of Group Executives.

VCC performance outcomes 2025/26

The system of the VCC is outlined in more detail in section 5.2 of this Compensation Report. The following table shows the targets for both the Group and ESG objectives, together with the actual achievements and payout percentage ranges for the VCC for the 2025/26 financial year. Payout percentage ranges for Business objectives are also included for additional transparency.

Performance targets are a derivative of the strategic plan and are typically based on year on year improvements set above the financial guidance given to the capital market.

*Disclosing internal targets would allow insight into Sonovaʼs confidential strategic goals and thereby create a competitive disadvantage, i.e. financial targets at business unit level and individual targets are not disclosed.

1Individual target achievement can be above 200%. However, maximum payout is capped at 200% except for Sales at 250%. The payout percentage is shown either as a single value or as a range of payout for each Group Executive.

2Reported non-GAAP figures adjusted for (including but not limited to) currency exchange rates fluctuations versus the rates at the time of budget setting. For details, please refer to the “Reconciliation of non-GAAP financial measures” table at the end of the Financial Review.

3Operating free cash flow – cash consideration for (including but not limited to) acquisitions and from divestments, net of cash acquired/divested – cash consideration for associates, excluding taxes. Includes the effect of non-GAAP figures adjustments and currency exchange rates fluctuations versus rates at the time of budget setting.

4Individual objectives not disclosed. Each Group Executive considered as a single data point (weighted average per category).

Overall, sales attainment was 98.7% of target, with momentum maintained throughout the year. Hearing Instruments (Wholesale and Retail) growth accelerated in the second half, aided by product launches and disciplined execution against a tougher prior-year base. EBITA stood at 94.2% of target, driven by stronger local-currency growth and improved operations. EPS reached 100.9% of target, and operating free cash flow was 100.4%. These results align with our pay-for-performance framework and helped inform incentive payouts under the current plan.

ESG Targets

The next table details group and individual ESG targets, and achievements for Group Executives in the 2025/26 financial year.

For the CEO, the achievement of ESG objectives (group and individual) ranged between 0% and 176.6%, resulting in a payout of 45.26% for this dimension.

The Board had set a number of strategic priorities for the CEO in his first year including resetting the Sonova Group strategy, defining and implementing a new business target operating model, evolving the Sonova culture with the focus on key attributes enabling the Groupʼs growth, reshaping the composition of the Executive Committee and supporting the redesign of the Executive Committee compensation framework. The Board was very satisfied with the progress achieved and the outcome of all of the strategic priorities. Based on this assessment, the CEO was awarded a payout of 200% for his individual qualitative objectives for 2025/26.

The overall payout for the 2025/26 financial year for the CEO was 109.44% (2024/25: 80.9%), and between 47.8% and 100.2% for the other Group Executives (2024/25: 63.5% – 88.5%).

6.2.2 Historical variable cash compensation for the Group Executives over the last five years

6.2.3 Approved versus actual total compensation for Group Executives

Compliance with shareholder limits: Actual Group Executivesʼ compensation for the 2025/26 financial year was CHF 8.469 million, below the maximum aggregate compensation amount of CHF 16.8 million approved at the 2024 AGM.

EEAP valuation methodology: EEAP compensation is approved and reported at fair value at grant, based on 100% target achievement. This balanced approach reflects the possibility of either over- or under-achievement for PSUs. The actual number of shares allocated per PSU depends on achievement of pre-determined performance conditions and ranges from 0 to 2 shares. Actual achievement will be disclosed when the awards vest.

Additional information to support the shareholder votes on compensation can be found in the invitation to the 2026 AGM.

6.2.4 Executive Equity Award Plan performance outcomes 2025/26

Performance Options

The vesting of performance options is subject to a pre-defined ROCE target. In the 2025/26 financial year, the ROCE target was exceeded for the option tranches awarded in 2023, 2024 and 2025. Since there is no provision for over-achievement in the EEAP, the vesting of the options is capped at target, namely at 100%. The ROCE target for the option tranche awarded in 2022 was not fully met and the vesting level was 96.5%.

12024 and 2025 ROCE targets set excluding M&A

Any unplanned acquisition which took place after the respective grant(s), together with major foreign exchange rate movements not anticipated in the ROCE target setting at the time of grant, are neutralized in the measurement.

Performance Share Units (PSU)

PSUs vest based on relative Total Shareholder Return (TSR) measured against a pre-defined peer group. The number of shares allocated for each vested PSU is within a range of 0% to 200% and calculated based on linear interpolation between the 20th and 80th percentile rank relative to the peer group.

The actual TSR was -16.85%, which corresponds to a 13.8% percentile rank relative to the peer group, and results in a 0% vesting in June 2026. For the PSUs awarded under the 2022 EEAP vesting in June 2025, the actual TSR was -11.75%, which corresponded to a 35.29% percentile rank relative to the peer group and resulted in a 50.96% vesting.

The following table is not audited by the external auditors.

6.2.5 Other compensation, loans, and credits for current and former Group Executives and related parties

Additional compensation: No other compensation was paid to current or former Group Executives for services beyond the total compensation disclosed previously.

Related party payments: No payments were made to individuals closely related to any current or former Group Executives during the reporting year.

Loans and credit: Neither Sonova nor any Group company granted loans to current or former Group Executives in the 2025/26 financial year, and no such loans were outstanding as of March 31, 2026. Similarly, no loans were granted to related parties of current or former Group Executives.

6.2.6 Outside mandates (audited by external auditors)

As of March 31, 2026, Group Executives held the following mandates outside Sonova:

				2025/26
	Listed companies	Function	Other mandates	Function
Eric Bernard	n.a.	n.a.	n.a.	n.a.
Lilika Beck	n.a.	n.a.	n.a.	n.a.
Elodie Carr-Cingari	Siegfried Holding AG	Board member, Audit Committee Chair	n.a.	n.a.
Roberto di Fiore	n.a.	n.a.	n.a.	n.a.
Katya Kruglova	n.a.	n.a.	n.a.	n.a.
Oliver Lux	n.a.	n.a.	n.a.	n.a.
Anders Rosengren	n.a.	n.a.	n.a.	n.a.
Alistair Simpson	n.a.	n.a.	n.a.	n.a.

				2024/25
	Listed companies	Function	Other mandates	Function
Arnd Kaldowski	n.a.	n.a.	European Hearing Instrument Manufacturers Association (EHIMA)	President
Ludger Althoff	n.a.	n.a.	n.a.	n.a.
Lilika Beck	n.a.	n.a.	n.a.	n.a.
Oliver Lux	n.a.	n.a.	n.a.	n.a.
Alistair Simpson	n.a.	n.a.	n.a.	n.a.
Katya Kruglova	n.a.	n.a.	n.a.	n.a.
Robert Woolley	n.a.	n.a.	n.a.	n.a.