On CEO Earns 10 Million Francs, the Highest in Swiss Start-up

Swiss footwear giant On Holding announced record financial results last week, accompanied by news of its CEO's compensation tripling. Michael Hoffmann, the company's head, received total compensation of 10.1 million Swiss francs in 2025. This amount, comparable to the earnings of CEOs of major Swiss pharmaceutical conglomerates, consisted of one million francs in fixed salary and 9.1 million francs in bonuses and stock awards. This reward is directly linked to the company's financial achievements: On recorded historic revenue of 3.6 billion francs, representing a 27 percent increase compared to the previous year, and an operating profit (EBIT) of 458 million francs. Behind this success lies aggressive international expansion, particularly a doubling of sales in China and a 50 percent growth in the US market. The company On, founded in 2010 by former triathlete Olivier Bernhard, gained worldwide fame thanks to its innovative CloudTec running shoe technology. Since its listing on the New York Stock Exchange in 2021, it has seen dynamic growth, expanding its portfolio to include sportswear and casual footwear, competing with brands like Nike and Adidas. The increase in the CEO's earnings is being watched not only by the market but also by the public. In Switzerland, where discussions about social inequality and fair profit distribution are a constant part of the debate, Hoffmann's sudden change in the pay ranking has sparked commentary. While some commentators emphasize that the compensation is proportional to the value created for shareholders, others point to the contrast between executive rewards and working conditions in the supply chain. The company has for years faced allegations regarding employment practices in its partner factories, mainly in Vietnam. Although On declares adherence to its own code of conduct and cooperation with independent auditors, non-governmental organizations continue to demand greater transparency and more effective remediation mechanisms. „In Zeiten, in denen der Aktienkurs steigt, fragt niemand nach den Kosten. Aber wenn es um 10 Millionen für den CEO geht, sind Fragen nach der anderen Seite der Medaille unvermeidlich.” (In times when the stock price is rising, no one asks about the costs. But when it comes to 10 million for the CEO, questions about the other side of the coin are inevitable.) — anonymous expert The outlook for On remains optimistic. The company is consistently increasing its market share by diversifying its products and sales geography. Investors appreciate this growth, although some analysts warn of potential challenges, such as saturation of the premium footwear market or increasing competition. Concerns about the supply chain and corporate social responsibility (CSR) remain a significant risk factor for the brand's image, especially among younger, conscious consumers. For Hoffmann and the board, the coming year will be a test of whether the company can maintain its impressive growth pace while responding to growing societal expectations regarding ethical business conduct and internal fairness.