Paying for sustainable performance
Winterthur, February 26, 2026
Dear Shareholder,
On behalf of the Board of Directors and of the Remuneration Committee (RC), I am pleased to present the 2025 Compensation Report.
2025 was marked by global uncertainty, yet Sulzer delivered a strong result, meeting guidance and achieving its business goals. Profitability and ROCE improved through disciplined execution, operational excellence, and efficiency gains. Demand for our products, solutions and services remained robust, although larger project delays tempered order intake growth. These outcomes demonstrated the Executive Committee’s ability to navigate volatility, sustain profitable growth, and strengthen the resilience of our systems. In line with our pay-for-performance philosophy, executive compensation outcomes reflect this performance.
First started in 2024, we continued our systematic review of our executive compensation framework, supported by independent market benchmarking. As part of this review, with effect as of 2025, we streamlined the Performance Share Plan (PSP) by reducing the plan cap from 250% to 200% and shifting from a fixed value grant to a percentage-of-base salary approach. We also fully aligned our Bonus and PSP KPIs with our financial reporting KPIs disclosed in our annual report to ensure consistent performance measurement which no longer relies on adjusted numbers that may be open to interpretation.
These adjustments reflect best practice and improve transparency. The resulting pay mix enhances alignment between executive rewards and long-term shareholder value creation. All grants remain subject to our established approval processes and rigorous governance standards.
In parallel, the Board of Directors extended its shareholding period to three years to further reinforce support of long-term shareholder interest. This enhancement strengthens governance discipline and long-term accountability.
The compensation paid to the Board of Directors in 2025 remained below the amounts previously approved by the AGM for the period in scope. The total compensation paid to the Executive Committee for 2025 remains entirely within the maximum compensation approved by the AGM 2024.
Our work to refine Sulzer’s compensation framework is a continuous commitment. We remain focused on reinforcing alignment with strategy delivery, profitable growth, capital efficiency as well as the long-term shareholder value.
On behalf of Sulzer, the Board of Directors and the Remuneration Committee, I thank you for your continued trust in our company.
Yours sincerely,
Dr. Hariolf Kottmann
Chairman
Remuneration Committee