time. The CNC reviews and approves any employment contracts, severance
contracts, or other agreements that the Company proposes to enter into with any present, future or former members of the Executive
Committee; provided that the key terms of such contracts shall be submitted for approval by the Board of Directors and shall be
within the bounds of the maximum compensation approved by the Ordinary Annual Shareholders' Meeting.
The annual cash bonus for 2016 was based on the achievement of
Company and individual goals. The target bonus, i.e. cash bonus to be paid if 100% of corporate and individual objectives are met,
is determined individually for each member of the executive management as a fixed amount, ranging from approximately 20% to 90%
of the base salary. According to the external benchmarking, the target bonuses continued to be in the lower range of the peer group.
The 2016 corporate goals included (i) fulfillment of various R&D project milestones, and (ii) successful completion of an initial
public offering. The weightings of the corporate and individual goals are defined for each executive management member and vary
depending on the position. In general, the higher the position of an employee, the more weight is put on the achievement of corporate
goals rather than on individual goals. The Board determined that the actual target achievement of the 2016 corporate goals was
Pension Plan and Social Charges
The Company participates in a collective foundation covering
all of its employees including its executive officers. In addition to retirement benefits, the plan provides death or long-term
disability benefits. Contributions paid to the plan are computed as a percentage of salary, adjusted for the age of the employee
and shared approximately 46% and 54% by employee and employer, respectively. This plan is governed by the Swiss Law on Occupational
Retirement, Survivors and Disability Pension Plans (BVG), which requires contributions to be made to a separately administered
fund. The fund has the legal form of a foundation and it is governed by the Board of Trustees, which consists of an equal number
of employer’s and employee’s representatives. The Board of Trustees is responsible for the administration of the plan
assets and for the definition of the investment strategy.
The Company pays old age and survivors’ insurance (AHV),
Disability insurance (IV), Income replacement scheme (EO) as required by Federal Swiss law.
Equity Incentive Plans
The 2016 Option and Incentive Plan (the “2016 Plan”)
was established for the officers, employees, non-employee directors and consultants of AC Immune SA. The 2016 Plan became
effective immediately prior to the Company’s initial public offering and provides for a variety of award types, including
stock options, restricted stock awards, restricted stock units, unrestricted stock awards, and performance based awards.
Vesting and performance based conditions vary by grant and are determined by the plan administrator, which is the board of
directors or the compensation committee of the board of directors or the Chief Executive Officer under specified delegation limitations
granted by the board of directors. However, option awards with an “Exercise Price” shall