3Board of Directors

The Board of Directors is responsible for PolyPeptide’s overall direction and oversight of management, and holds the ultimate decision-making authority, with the exception of matters reserved for shareholders.

We believe that the composition of our Board of Directors should reflect PolyPeptide’s objectives, strategic requirements, geographical reach and its culture. The Board of Directors should further be diverse in terms of gender, nationality, geographical / regional and business experience.

In furtherance of this, the Board of Directors has determined a wide range of skills to ensure that all members are well qualified, committed and willing to devote the necessary time and effort to effectively perform their responsibilities. Based on the defined set of competencies, the Board members were asked to identify their key skills highlighted by their educational and professional background and personal achievements, as illustrated in the chart below.

Board skills distribution

The Remuneration and Nomination Committee regularly assesses the set of competencies as well as each Director’s contributions to ensure that an appropriate mix of skills, expertise and diversity is represented on the Board of Directors and its Committees. In addition, the Remuneration and Nomination Committee, together with the Board of Directors, actively considers gender diversity in succession planning of the Board of Directors as well as of the Executive Committee.

3.1Members of the Board of Directors

There has been no change in the Board of Directors in the reporting year. Each Director stood for re-election at the general meeting 2022 (“AGM 2022”) and was approved by the shareholders. Thus, as of 31 December 2022, the Board consisted of six (6) non-executive Directors (including the Chairman and the Lead Independent Director), three (3) of which are independent as outlined below:

Name

Position

First election

End of term

 

 

 

 

Peter Wilden

Chairman, Non-executive 1

2021

AGM 2023

Patrick Aebischer

Vice-Chairman, Non-executive and Lead Independent Director 2, 3

2021

AGM 2023

Jane Salik

Member, Non-executive 4

2021

AGM 2023

Erik Schropp

Member, Non-executive

2021

AGM 2023

Beat In-Albon

Member, Non-executive and Independent 2

2021

AGM 2023

Philippe Weber

Member, Non-executive and Independent 2, 5

2021

AGM 2023

1 As announced on 30 January 2023, Raymond De Vré resigned as CEO, and Dr. Peter Wilden assumed the role of Executive Chairman with immediate effect. Dr. Wilden’s role as Executive Chairman is expected to be limited in nature to actively manage the CEO succession and assure business continuity.
2 The term “independent” is interpreted in accordance with art. 14 of the Swiss Code of Best Practice for Corporate Governance. In addition, section 4(d) of the Organizational Regulations further specifies that (i) a Director shall be deemed to have no or comparatively minor business relations with any member of the Group as long as such Director is not receiving more than CHF 120,000 during any 12-month period in direct compensation from any member of the Group (other than director fees and related compensations), and (ii) the Director is not a current executive officer of a company that made payments to, or received payments from any member of the Group for property or services in an amount which, in any of the last three fiscal years, exceeded the greater of CHF 200,000 or 5% of the recipient company’s consolidated gross revenues for that year, and (iii) the Director has not held any executive position within the Company during the past three years, and (iv) the Director does not represent a shareholder that holds more than 15% of the Company’s shares.
3 Dr. Patrick Aebischer has been a Senior Partner and member of the Investment Advisory Committee of NanoDimension Management Limited since 2017. In 2021, PolyPeptide committed to a limited investment in a partnership managed by NanoDimension Management Limited. Dr. Aebischer abstained from voting on this item. The indirect business relationship between PolyPeptide and Dr. Aebischer resulting from said commitment is considered comparatively minor. Thus, Dr. Aebischer is considered independent within the meaning of art. 14 Swiss Code of Best Practice for Corporate Governance and section 4(d) of the Organizational Regulations.
4 Jane Salik (Member) served as the CEO of PolyPeptide from 2006 until 29 April 2021 and was a member of the Executive Committee of PolyPeptide from 2006 until 17 August 2021. Prior to her resignation from the Executive Committee on 17 August 2021, she was considered an executive member of the Board.
5 Philippe Weber is a Partner at Niederer Kraft Frey AG (NKF), which acted as legal adviser to PolyPeptide in connection with its IPO and other ordinary course corporate legal matters. Refer to section 4.2 “Compensation of the Board of Directors” of the Remuneration Report 2022 for disclosure of the fees received by NKF in relation to these ordinary course legal matters. The business relationship between PolyPeptide and Mr. Weber is considered comparatively minor. Thus, Mr. Weber is considered independent within the meaning of art. 14 Swiss Code of Best Practice for Corporate Governance and section 4(d) of the Organizational Regulations.

PolyPeptide believes that the composition of its Board of Directors and Committees with regard to independence and competences fairly reflects and balances the interests of its shareholders and other stakeholders.

Set out below is a short description of the business experience, education and activities of each director.

graphic

Peter Wilden

Chairman since 2021
Non-executive11
Nationality: German
Year of birth: 1957

Professional background

Beginning in 1991, Dr. Wilden held various senior roles within the Ferring Group, ultimately serving as Executive Vice President and CFO of Ferring Pharmaceuticals between 2000 and 2017. During his tenure with the Ferring Group, Dr. Wilden also served as member of the board of directors for various subsidiaries of the Ferring Group. Following his resignation as Executive Vice President and CFO in 2017, Dr. Wilden has continued to hold various directorships and advisory roles within the Ferring Group. Due to the Group’s ongoing business relationship with the Ferring Group, which is also considered a related party, Dr. Wilden is assessed as not independent.12

As announced on 30 January 2023, Raymond De Vré resigned as CEO, and Dr. Peter Wilden assumed the role of Executive Chairman with immediate effect. Dr. Wilden’s role as Executive Chairman is expected to be limited in nature to actively manage the CEO succession and assure business continuity.

Prior positions at PolyPeptide

  • None

Outside mandates at listed companies

  • None

Outside mandates at non-listed companies

  • Executive Chairman of Ferring International Center SA, Switzerland (since 2002)

Outside mandates at non-profit organizations

  • Director of the Suisse Polar Foundation, Switzerland (since 2018)
  • Chairman of Project HOPE Suisse International Foundation, Switzerland (since 2015)
  • Director / Vice-Chairman of Project HOPE, USA (since 2012)

Former outside activities and functions

  • Vice-Chairman of Schlumberger AG, Austria (2014–2022)
  • Director of Ferring Ventures SA (previously named Trizell Holding SA), Switzerland (2014–June 2021)
  • Director / Chairman of the Audit Committee / Vice-Chairman of Lonza Group AG, Switzerland (2004–2014)
  • Executive Vice-President and CFO of Ferring Pharmaceuticals, Switzerland (2000–2017)
  • Director of Trace Biotech AG, Germany (1999–2002)
  • Director of Group Finance of Ferring BV, The Netherlands (1995–2000)
11 As announced on 30 January 2023, Dr. Peter Wilden assumed the role of Executive Chairman.
12 Ferring Group is disclosed in note 22 to the consolidated financial statements as a related party because it is related to the Company through the Esperante Investments Group ownership structure. For further information, see note 22 “Related parties” of the consolidated financial statements in the Financial Report 2022.
  • Vice-President Finance & Accounting and Technical Operations of Ferring Arzneimittel GmbH, Germany (1993–1996)
  • Director of Finance at Ferring Arzneimittel GmbH, Germany (1991–1993)
  • IT Consultant at MaK Data System GmbH (within the Krupp Steel Group), Germany (1988–1991)
  • Management Assistant, Krupp MaK Maschinenbau GmbH, Germany (1986–1988)
  • Scientific Assistant within the IT-Group at the Institute of World Economics, Germany (1983–1986)
  • Tax Inspector at the Inland Revenue Service, Germany (1980–1981)

Education

  • PhD in Economics, University of Kiel, Germany (1991)
  • MBA in Industrial Economics, University of Kiel, Germany (1986)
  • Education Tax Inspector at the German Inland Revenue Service, Germany (1977–1980)

Key skills: Industry experience; Leadership / management; Finance / accounting / risk management; Data / digital; Environmental, social and governance (ESG); Strategy / development / execution

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graphic

Patrick Aebischer

Vice-Chairman and Lead Independent Director since 202113
Non-executive
Nationality: Swiss
Year of birth: 1954

Professional background

Since 2000, Dr. Aebischer has served as a Professor of Neurosciences at the Swiss Federal Institute of Technology Lausanne (EPFL), Switzerland. He has received numerous honors, including the Robert Bing Prize of the Swiss Academy of Medicine and the Pfizer Foundation Prize for Clinical Neurosciences. Dr. Aebischer holds various academic advisory positions as well as various positions in non-profit foundations and scientific advisory boards.

Prior positions at PolyPeptide

  • None

Outside mandates at listed companies

  • Director of Logitech SA, Switzerland (since 2016)
  • Director of Nestlé SA, Switzerland (since 2015)

Outside mandates at non-listed companies

  • Director of Swiss Vaccine SA, Switzerland (since 2022)
  • Chairman of Vandria SA, Switzerland (since 2021)
  • Senior Partner of NanoDimension Management Limited, Cayman Islands (since 2017)
  • Chairman of the Novartis Venture Fund, Switzerland (since 2014)
  • Chairman of Amazentis SA, Switzerland (since 2007)
13 Dr. Patrick Aebischer has been a Senior Partner and member of the Investment Advisory Committee of NanoDimension Management Limited since 2017. In 2021, PolyPeptide committed to a limited investment in a partnership managed by NanoDimension Management Limited. Dr. Aebischer abstained from voting on this item. The indirect business relationship between PolyPeptide and Dr. Aebischer resulting from said commitment is considered comparatively minor. Thus, Dr. Aebischer is considered independent within the meaning of art. 14 Swiss Code of Best Practice for Corporate Governance and section 4(d) of the Organizational Regulations.

Outside mandates at non-profit organizations

  • Director of Fondation «Geneva Science & Diplomacy Anticipator», Switzerland (since 2019)
  • Director of Fondation du domaine de Villette, Switzerland (since 2018)
  • Chairman of Fondation ArtTech, Switzerland (since 2017)
  • Director of Fondation Defitech, Switzerland (since 2017)
  • Chairman of Swiss Polar Foundation, Switzerland (since 2016)
  • Director of Fondation Claude Nobs, Switzerland (since 2015)
  • Director of Fondation du Festival de Verbier, Switzerland (since 2015)

Former outside activities and functions

  • Director of Lonza Group AG, Switzerland (2008–2020)
  • Professor of Neurosciences, Swiss Federal Institute of Technology Lausanne (EPFL), Switzerland (2000–2019)
  • President of EPFL, Switzerland (2000–2016)
  • Founding scientist and Director of Modex Therapeutiques Inc., Switzerland (IPO 2000 on SIX) (1996–2004)
  • Professor and Medical Director of the Surgical Research Division at Lausanne University Medical School Hospital (1992–2000)
  • Founding scientist of CytoTherapeutics Inc., USA (IPO 1996 on NASDAQ) (1989–1999)
  • Professor, Brown University, USA (1986–1992)

Education

  • Dr. in Medicine, University of Geneva, Switzerland (1983)
  • MD, University of Geneva, Switzerland (1980)

Key skills: Industry experience; Leadership / management; Data / digital; Environmental, social and governance (ESG); Strategy / development / execution; Independence

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graphic

Erik Schropp

Member since 2021
Non-executive
Nationality: Dutch
Year of birth: 1964

Professional background

Currently, Mr. Schropp is CEO of Esperante Investments Group and a director of Draupnir Holding B.V. (one of the Company’s significant shareholders, see section 1.2 “Significant shareholders” of this Corporate Governance Report).14 As a result of these roles, Mr. Schropp is assessed as not independent.

Prior positions at PolyPeptide

  • Director of PolyPeptide Laboratories Holding B.V., The Netherlands, and PolyPeptide Laboratories Holding (PPL) AB, Sweden (2017–2021)

Outside mandates at listed companies

  • None
14 Draupnir Holding B.V. is disclosed in note 22 to the consolidated financial statements as a related party because it is related to the Company through the Esperante Investments Group ownership structure. For further information, see note 22 “Related parties” of the consolidated financial statements in the Financial Report 2022.

Outside mandates at non-listed companies

  • CEO of Esperante Investments Group (since 2020) (including serving as a director of Draupnir Corporation B.V., The Netherlands (since 2022) and Draupnir Holding B.V., The Netherlands (since 2008) and of the following strategic business units: (i) SEVER Life Sciences B.V., The Netherlands (since 2019), including serving as a director of four subsidiary companies; (ii) Esperante B.V., The Netherlands (since 2008); (iii) Svar Life Science AB, Sweden (since 2008), including serving as a director of one subsidiary company)
  • Director of Haydn Holding AB, Sweden (since 2012) (including serving as a director at four subsidiary companies)
  • Director of Ferring Foundation B.V., The Netherlands (since 2008) (including serving as a director of two subsidiary entities)

Outside mandates at non-profit organizations

  • None

Former outside activities and functions

  • Director of FinVector Oy, Finland (2020–2021)
  • Director of Altacor Ltd., United Kingdom (2014–2017)
  • Group Financial Officer, C&P Investors Group (presently: Esperante Investments Group), The Netherlands (2008–2020)
  • Group Tax & Finance Director, C&P Investors Group (presently: Esperante Investments Group), The Netherlands (2005–2008)
  • International Tax & Finance Director, Ferring Pharmaceuticals, The Netherlands and Denmark (1999–2005)
  • International Tax Manager, Unisource N.V., The Netherlands (1996–1999)
  • Tax Manager, Arthur Andersen, The Netherlands (1988–1996)

Education

  • Master's degree in Economics & Tax, Erasmus University, Rotterdam, The Netherlands (1988)

Key skills: Leadership / management; Finance / accounting / risk management; Data / digital

Read More
graphic

Jane Salik

Member since 2021
Non-executive (since 17 August 2021)
Nationality: American
Year of birth: 1953

Professional background

Ms. Salik joined PolyPeptide in 1996 as President of PolyPeptide Laboratories Inc., where she was responsible for sales and marketing, and overall management, administration and strategic planning for the company. In 2006, she was appointed CEO during which time she guided PolyPeptide through a period of significant growth, expansion of sales and profits, expanding into new geographies and establishing a culture of innovation and execution of best practice. Ms. Salik resigned as CEO on 29 April 2021 and was a member of the Executive Committee of PolyPeptide until 17 August 2021. Due to her recent operational management roles at the Group, Ms. Salik is assessed as not independent.

Prior positions at PolyPeptide

  • Group CEO (2006–April 2021) and Executive Committee member (2006–August 2021)
  • President, PolyPeptide Laboratories, Inc., USA (1996–2006)
  • Director of PolyPeptide Laboratories Holding B.V., The Netherlands, as well as certain of its direct and indirect global subsidiaries (2003–2021)

Outside mandates at listed companies

  • None

Outside mandates at non-listed companies

  • None

Outside mandates at non-profit organizations

  • None

Former outside activities and functions

  • Vice President of Sales and Marketing, Bachem California, USA (1986–1996)
  • Technical services biochemist, product manager and marketing manager, Boehringer Mannheim, USA (1980–1986)

Education

  • PhD in Molecular and Cellular Biology, SUNY Stony Brook, USA (1980)
  • B.A. in Biology, Lafayette College, USA (1975)

Key skills: Industry experience; Leadership / management; Environmental, social and governance (ESG); Strategy / development / execution

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graphic

Beat In-Albon

Member since 2021
Independent; Non-executive
Nationality: Swiss
Year of birth: 1952

Professional background

From 2016 to 2018, Mr. In-Albon was Head of Strategic Projects at Lonza AG, Switzerland, on a part-time basis ahead of his retirement. Previously, Mr. In-Albon served as Senior Vice President and Chief Operating Officer Specialty Ingredients and was a member of the Executive Management Committee of Lonza AG, Switzerland, from 2012 until 2015.

Prior positions at PolyPeptide

  • None

Outside mandates at listed companies

  • Chairman of Evolva Holding SA, Switzerland (since 2020)

Outside mandates at non-listed companies

  • Chairman of Hans Kalbermatten Thermalbad AG, Switzerland (since 2021)
  • Director of Deccan Fine Chemicals Pvt. Ltd., India (since 2019)

Outside mandates at non-profit organizations

  • Vice-Chairman of Lonza Arena AG, Switzerland (since 2020)

Former outside activities and functions

  • Director / Chairman of Escientia Switzerland AG, Switzerland (2020–2021)
  • Head of Strategic Projects at Lonza AG, Switzerland (2016–2018)
  • Senior Vice President and COO Specialty Ingredients / Member of the Executive Management Committee, Lonza AG, Switzerland, (2012–2015)
  • Director of Siegfried AG, Switzerland (2009–2012)
  • Executive Vice President of Industrial Services, Member of the Operations Council, SGS SA, Switzerland (2009–2012)
  • Executive Vice President of Life Science Services / Member of the Operations Council, SGS SA, Switzerland (2008–2009)
  • Senior Vice President / Head of Organic Fine- & Performance Chemicals / Member of the Executive Management Committee at Lonza Group AG, Switzerland (2006–2007)
  • Senior Vice President / Head of Organic Fine- & Performance Chemicals / Member of the Executive Management Committee of Lonza AG, Switzerland (2003–2006)
  • Various positions at Lonza AG, Switzerland, in the fields of Agrochemicals and Organic Fine Chemicals (starting 1983)

Education

  • Master of Business Administration in Political Economy, University of Fribourg, Switzerland (1987)
  • PhD in Economic Science, University of Fribourg, Switzerland (1983)

Key skills: Industry experience; Leadership / management; Finance / accounting / risk management; Law / regulatory; Environmental, social and governance (ESG); Independence

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graphic

Philippe Weber

Independent15; Non-executive
Member since 2021
Nationality: Swiss
Year of birth: 1965

Professional background

Mr. Weber is a member of the board of directors of Niederer Kraft Frey AG, Zurich (since 2008) and has been a partner of Niederer Kraft Frey AG, Zurich since 2002. He is an attorney-at-law admitted to the Swiss bar.

Prior positions at PolyPeptide

  • None

Outside mandates at listed companies

  • Vice-Chairman of Leonteq AG, Switzerland, and Leonteq Securities AG, Switzerland (both since 2020)
  • Director of Medacta Group AG, Switzerland (since 2019)
  • Director of EDAG Engineering Group AG, Switzerland (since 2015)

Outside mandates at non-listed companies

  • Director of NorthStar Holding AG, Switzerland (since 2018)
  • Director of Banca del Ceresio SA, Switzerland (since 2017)
  • Director of Newron Suisse SA, Switzerland (since 2007)
  • Partner at Niederer Kraft Frey AG, Switzerland (since 2002)
  • Company Secretary of CLS Group Holdings AG, Switzerland (since 2002)
15 Philippe Weber is a Partner at Niederer Kraft Frey AG (NKF), which acted as legal adviser to PolyPeptide in connection with its IPO and other ordinary course corporate legal matters. Refer to section 4.2 “Compensation of the Board of Directors” of the Remuneration Report 2022 for disclosure of the fees received by NKF in relation to these ordinary course legal matters. The business relationship between PolyPeptide and Mr. Weber is considered comparatively minor. Thus, Mr. Weber is considered independent within the meaning of art. 14 Swiss Code of Best Practice for Corporate Governance and section 4(d) of the Organizational Regulations.

Outside mandates at non-profit organizations

  • None

Former outside activities and functions

  • Chairman and managing partner of Niederer Kraft Frey AG, Switzerland (2015–March 2021)
  • Director of Robert Aebi AG, Switzerland (2004–2017)

Education

  • PhD in law (summa cum laude), University of Zurich, Switzerland (1995)
  • LL.M. (with distinction), European University Institute (EUI) in Fiesole, Italy (1994)

Key skills: Leadership / management; Law / regulatory; Environmental, social and governance (ESG); Strategy / development / execution; Independence

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3.2Other activities and vested interests

Except as disclosed in the biographies of the members of the Board of Directors, no further activities or vested interests are carried out outside of PolyPeptide.

3.3Mandates and other permitted activities

Our Articles of Association limit the number of functions in superior management or administrative bodies of legal units other than with PolyPeptide that Directors are allowed to hold at one time.

Pursuant to art. 23 of the Articles of Association, the Directors may have the following other functions in the superior management or administrative bodies of legal units obliged to register themselves in a Swiss commercial register or a foreign equivalent thereof:

  • up to four (4) mandates as member of the board of directors or any other superior management or administrative body of listed companies; and, in addition,
  • up to ten (10) mandates as member of the board of directors or any other superior management or administrative body of legal entities that do not meet the above mentioned criteria.

With respect to the additional activities of the Directors, mandates in companies that are under uniform control or the same beneficial ownership are deemed to be one mandate.

The following mandates shall not be subject to the limitations set forth in art. 23 of the Articles of Association:

  • mandates in companies which are controlled by the Company or which control the Company;
  • mandates held at the request of the Company or companies controlled by it; no member of the Board of Directors shall, however, hold more than ten (10) such mandates; and
  • mandates in associations, charitable organizations, foundations, employee welfare foundations and other similar organizations; no member of the Board of Directors shall, however, hold more than fifteen (15) such mandates.

3.4Election and term of office

According to art. 15 of the Articles of Association, the Board of Directors consists of a minimum of three (3) members. As prescribed by Swiss Law, all members of the Board of Directors, including the Chairman, have to be elected individually, and may only be removed by a shareholders’ resolution. The maximum term of office for a member of the Board of Directors is one year. In this context, one year means the time period between one general meeting and the next or, if a member is elected at an extraordinary shareholders’ meeting between such extraordinary shareholders’ meeting and the next general meeting. Re-election is possible. The Company’s Articles of Association do not contain a limitation on the number of terms served or the age of members of the Board of Directors, including the Chairman.

The members of the Remuneration and Nomination Committee (individually) as well as the independent proxy (the “Independent Proxy”) are also elected by the general meeting for a one-year term.

If the office of the Chairman of the Board of Directors is vacant, the Remuneration and Nomination Committee is not complete or the Company does not have an Independent Proxy, the Board of Directors shall appoint a substitute for the time period until the conclusion of the next general meeting who must be (with the exception of the Independent Proxy) a member of the Board of Directors.

Please refer to section 3.1 “Members of the Board of Directors” of this Corporate Governance Report for information relating to the time of first election to office of the Company’s current Directors.

3.5Internal organizational structure

3.5.1Allocation of tasks within the Board of Directors

3.5.1.1General

Our Board of Directors is responsible for the ultimate direction of PolyPeptide, supervision of our management and holds the ultimate decision-making authority, with the exception of matters reserved for shareholders.

The Board of Directors determines PolyPeptide’s strategy, the allocation of resources and the management framework. It is also responsible for setting the organizational structure, accounting, financial control and financial planning. In addition, the Board of Directors takes responsibility for all sustainability and environmental, social and governance (“ESG”) issues. For further information, see the chapter Corporate Responsibility.

The internal structure of our Board of Directors is set out in the Organizational Regulations, which determines the corporate bodies of PolyPeptide, defines their responsibilities and competences regarding management and regulates the functioning and cooperation of the various bodies involved in PolyPeptide’s management. Subject to applicable law and the Articles of Association, the allocation of tasks within the Board of Directors is determined annually by the Board at its first meeting following the general meeting in accordance with section 2.1.1 of the Organizational Regulations.

To operate effectively and allow in-depth focus in specific areas, the Board of Directors has four standing committees (each, a “Committee”):

Committee

Chair

Member

 

 

 

Audit and Risk Committee (ARC)

Beat In-Albon

Erik Schropp

Remuneration and Nomination Committee (RNC)

Philippe Weber

Peter Wilden

Innovation and Technology Committee (ITC)

Patrick Aebischer

Jane Salik

Chair’s Committee (CC) 1

Peter Wilden

Beat In-Albon Philippe Weber Patrick Aebischer

1 Established 30 November 2022.

Except for the election of the Chairman of the Board of Directors and the members of the Remuneration and Nomination Committee (which are to be elected by the general meeting), the Board of Directors determines its own organization. It elects the Lead Independent Director, the members of the other Committees and appoints a secretary who does not need to be a member of the Board of Directors. Peter Wilden is currently serving as the Chairman of the Board of Directors.

Each Committee generally comprises two or more members of the Board of Directors with its own charter governing its duties and responsibilities. The Committees have no decision-making authority of their own (unless provided with such authority by a special resolution of the Board of Directors) and generally act in advisory and preparatory capacities. The Board of Directors remains ultimately responsible for the tasks delegated to the Committees by Swiss law, the Articles of Association or the Organizational Regulations.

The Board of Directors may form additional ad-hoc working groups and standing committees for particular areas within the scope of its duties to deal with specific issues. During the second half of 2022, the Chairman of the Board, together with the three chairmen of each of the Committees (listed in the table above) held a series of meetings with the CEO to discuss various topics of strategic importance and other key business matters. At its meeting on 30 November 2022, the Board of Directors decided to formalize this ad hoc working group and, thus, constituted a new “Chair’s Committee”. The Organizational Regulations were amended accordingly on 9 March 2023 to reflect this new standing committee. For more information on the Chair’s Committee, see section 3.5.3.4 “Chair’s Committee” of this Corporate Governance Report. Other than as described herein, no other ad-hoc working groups or standing committees were formed in 2022.

At least annually, the Board reviews its own performance, as well as the performance of each of the Committees. Such assessment seeks to determine whether each of the Board and the Committees function effectively and efficiently. For 2022, the self-assessments were prepared by the Company based on customary industry evaluations and questionnaires, and reviewed and commented on by the Chairman. Following the completion of the assessments, the Board of Directors reviews the results and discusses areas or opportunities for improvement.

3.5.1.2Lead Independent Director

The Lead Independent Director is an independent member of the Board of Directors and is elected by the Board of Directors for a term of one year or until the conclusion of the next general meeting. If the Chairman is indisposed, the Lead Independent Director will take the chair at the meetings of the Board of Directors and the shareholders’ meeting. In particular, the Lead Independent Director will chair the meeting of the Board of Directors or the shareholders’ meeting if the Chairman is required to abstain from the deliberation and decision-taking in case the following items are on the agenda: (i) assessment of the work of the Chairman; (ii) decision of the Board of Directors on the request to the shareholders’ meeting for the re-election or not of the Chairman; (iii) decision about the compensation of the Chairman; and (iv) any other matters in which the Chairman has a conflict of interest. The Lead Independent Director is entitled to call a meeting of the Board of Directors whenever he or she deems fit.

Patrick Aebischer is currently serving as the Lead Independent Director and Vice-Chairman.

3.5.2Working methods of the Board of Directors

3.5.2.1Overview

Meetings of the Board are held as often as the business requires, but as a general rule at least four (4) times per year, including (i) in the first quarter, inter alia, to approve the annual report and the agenda and invitation to the upcoming general meeting; (ii) immediately after the general meeting, inter alia, to constitute the Board; (iii) in the third quarter, inter alia, to approve the half year financials; and (iv) in the fourth quarter, inter alia, to approve the budget for the next financial year. For each of these meetings, the Chairman also generally selects key business or strategic topics for more in-depth focus and discussion, such as quality, information security / information technology and risk management. Meetings of the Board are convened by the Chairman if and when the need arises or whenever a Director or the CEO, indicating the reasons, so requests in writing. If the Chairman does not comply with any such request within 14 days, the Lead Independent Director is entitled to call the meeting.

Notice of meetings is given at least five (5) business days prior to the meeting. The notice must set forth the time, place and agenda of the meeting so that Directors may have a reasonable understanding of the business intended to be conducted at the meeting. Directors are provided with all necessary supporting materials at least five (5) business days prior to the meeting. In urgent cases (as determined by the Chairman in his or her discretion), a meeting may be held on appropriate shorter notice. If the Chairman deems it necessary, supporting materials may also be provided later to allow the Board to receive the latest available information. This applies, in particular, to updates on financial and other relevant data. Board meetings may be held in person, by telephone or by video conference.

The Chairman, or in his absence the Lead Independent Director, or in the absence of both, a Director designated by the attending Directors, shall chair the meeting.

If all Directors are present and agree, deviations from the formal requirements set forth in the Organizational Regulations (including those described above) are permitted; in particular, decisions can be taken in respect of items that are not listed on the agenda for the meeting.

As a general principle, Directors shall arrange their personal and business affairs so as to avoid, as much as possible, a conflict of interest. As set forth in the Organizational Regulations, each Director shall disclose to the Chairman regarding any conflict of interest arising or relating to any matter to be discussed at the meeting of the Board as soon as the Director becomes aware of its potential existence. The Chairman (or, if applicable, the Lead Independent Director or the Remuneration and Nomination Committee) will decide upon appropriate measures to avoid any interference of such conflict of interests with the decision-making of the Company. As a rule, subject to exceptional circumstances in which the best interests of the Company dictate otherwise, the Director will not participate in the decision-making involving the matter at stake. The Director with a conflict will have the right to, or may be required by the Chairman to provide a statement of his or her view of the matter.

In principle (and as set forth in the Organizational Regulations), the CEO and the other members of the Executive Committee attend designated and selected sections of the meetings of the Board without the right to vote as guests, except where not appropriate (e.g., if particular matters relating to their performance or remuneration are discussed). For example, as a general matter all members of the Executive Committee attend Board sessions dedicated to reports from management, whereas no members of the Executive Committee are present at the non-executive sessions of the Board meetings. Other members of the Group’s senior management are expected to participate at meetings of the Board if specific issues falling within their responsibility are on the agenda. The Chairman decides if and which persons outside the Board are entitled to attend meetings of the Board as guests.

In order to pass resolutions, not less than a majority of the Directors must be participating in the meeting (whether in person, by phone or video conference). The Board may pass resolutions with the majority of the votes cast (simple majority). Abstentions count as votes uncast. In case of a tie of votes, the Chairman has the casting vote. Board resolutions may also be passed by means of circular resolutions, by letter, facsimile or PDF document (e-mail); provided that no Director requests by phone, facsimile or e-mail within five (5) days of receipt of the proposed resolution that the resolution be deliberated in a meeting. Board resolutions by means of circular resolutions require the affirmative vote of the majority of the Directors.

3.5.2.22022 Board of Director meetings and key topics

Since 1 January 2022, the Board of Directors met seven (7) times, in a combination of in-person sessions and video conferences, for an average duration of approximately four (4) hours (with individual sessions lasting between one (1) to six (6) hours).

The following table outlines the dates and the attendees of each meeting of the Board of Directors.

Date / place

Attendees

Other attendees

 

 

 

10 March 2022 Video conference

Board of Directors (all)

Raymond De Vré Jan Fuhr Miller Christina Del Vecchio (Secretary)

25 April 2022 Obbürgen, Switzerland

Board of Directors (all)

Raymond De Vré Jan Fuhr Miller (VC) Daniel Lasanow Neil Thompson Olivier Ludemann-Hombourger (Director Global Innovation & Technology) Jon Holbech Rasmussen (Director Global Development / Regulatory / IP) René Vestergaard (Director, Corporate Finance) Monika Casanova (Chief Human Resources Officer - elect ) Christina Del Vecchio (Secretary)

22 June 2022 Limhamn, Sweden

Board of Directors (all)

Raymond De Vré Jan Fuhr Miller Daniel Lasanow Neil Thompson Christina Del Vecchio (Secretary)

17 August 2022 Braine-l’Alleud, Belgium

Board of Directors (all)

Raymond De Vré Jan Fuhr Miller Daniel Lasanow Neil Thompson Landon Piluso (Director of Global Quality) Christina Del Vecchio (Secretary)

27 October 2022 Video conference

Board of Directors (all)

N/A

10 November 2022 Video conference

Board of Directors (all)

N/A

30 November 2022 Baar, Switzerland

Board of Directors (all)

Raymond De Vré Jan Fuhr Miller Neil Thompson Christophe Chevalier (Head of Technical Department, Braine, VC) Landon Piluso (Director of Global Quality, VC) Kent Axelsson (Global Procurement Director, VC) Thomas Lorentzon (Global Director IS/IT) Michael Stäheli (Head of Investor Relations and Corporate Communications) Christina Del Vecchio (Secretary)

The key topics of the Board of Directors during this period included, among other things:

  • Review and approval of the 2021 full-year report and audited consolidated financial statements
  • Review and approval of 2021 variable short-term incentive for the members of the Executive Committee
  • Review and approval of AGM 2022 agenda and invitation
  • Review and approval of the individual targets and weighting of 2022 variable short-term incentive for the members of the Executive Committee
  • Approval of the 2022 half-year report and consolidated financial statements
  • Regular review and discussion regarding the Group's year-to-date sales, financials and full-year outlook
  • Review and consideration of PolyPeptide’s key strategic plans and initiatives
  • Deep-dive into PolyPeptide’s Quality and Information Security / Technology departments
  • Review and monitoring of the Group’s Environmental, Social and Governance (ESG) Roadmap
  • Review and approval of the Group’s Enterprise Risk Management system and evaluation of PolyPeptide’s key risks and mitigating / managing strategies
  • Planning and content of the Group’s 2022 annual report and topics related to the 2023 general meeting
  • Review of the Group’s budget for 2023 financial year

3.5.3Working methods of the Committees

The Committees act in advisory and preparatory capacities and have no decision-making authority of their own (unless provided with such authority by a special resolution of the Board of Directors). The Board remains ultimately responsible for the tasks delegated to the Committees by Swiss law, the Articles of Association or the Organizational Regulations.

The Committees keep the Chairman of the Board of Directors informed on a current basis about all important strategic issues, transactions as well as any business situations and / or developments within their scope of responsibilities and duties. The Chairman monitors such informational duties of the Committees. The chairman of each Committee provides the full Board of Directors at their meeting with an overview of key topics discussed at the most recent Committee meeting.

Each Committee meets at such frequency as it deems necessary to fulfill its duties, normally ahead of ordinary Board meetings, which are expected to take place at least four times per year. Additional meetings may be held and may be convened at the request of either the Board of Directors or any Committee member. The Audit and Risk Committee further meets upon request of the governance, risk and compliance officer (the “GRC Officer”).

The secretary prepares the agenda for each meeting, keeps the minutes, and assists the Committee and the chairman to coordinate and fulfill their duties and assignments. Once signed by the Committee chairman and secretary, the minutes (together with all presentation and background materials) of each Committee meeting are made available to the full Board of Directors for their review.

3.5.3.1Remuneration and Nomination Committee

The Remuneration and Nomination Committee is entrusted with preparing and periodically reviewing PolyPeptide’s compensation policy, compensation strategy and principles as well as the performance criteria related to compensation and the accompanying review of their implementation. The Remuneration and Nomination Committee is also responsible for submitting proposals and recommendations to the Board of Directors regarding compensation matters. The Remuneration and Nomination Committee further supports the Board of Directors in preparing the compensation proposals for the general meeting. In addition, the Remuneration and Nomination Committee assists the Board of Directors in relation to the succession planning for and nomination of the members of the Board of Directors and the Executive Committee as well as the corporate governance of the Company and the Group. In furtherance of this, the Remuneration and Nomination Committee, for example, regularly assesses the set of competencies as well as each Director’s contributions to ensure that an appropriate mix of skills, expertise and diversity is represented on the Board of Directors and its Committees. The specific responsibilities and competencies of the Remuneration and Nomination Committee are set forth in art. 19 of the Articles of Association, section 5.3 of the Organizational Regulations as well as the Remuneration and Nomination Committee Charter.

The members of the Remuneration and Nomination Committee are individually elected by the general meeting for a one-year term. The chairman of the Remuneration and Nomination Committee shall be independent and is appointed by the Board of Directors. As of 31 December 2022, the Remuneration and Nomination Committee consisted of two members: Philippe Weber (chairman) and Peter Wilden.

2022 Remuneration and Nomination Committee meetings and key topics

Since 1 January 2022, the Remuneration and Nomination Committee met six (6) times, in a combination of in-person sessions and video conferences, for an average duration of approximately two (2) hours.

Date / place

Attendees

Other attendees

 

 

 

4 February 2022 Video Conference

Philippe Weber Peter Wilden

Raymond De Vré Jan Fuhr Miller Christina Del Vecchio (Secretary)

3 March 2022 Video Conference

Philippe Weber Peter Wilden

Raymond De Vré Jan Fuhr Miller Christina Del Vecchio (Secretary)

25 April 2022 Obbürgen, Switzerland

Philippe Weber Peter Wilden

Raymond De Vré Monika Casanova (Chief Human Resources Officer - elect ) Christina Del Vecchio (Secretary)

21 June 2022 Limhamn, Sweden

Philippe Weber Peter Wilden

Raymond De Vré Monika Casanova (Chief Human Resources Officer) Christina Del Vecchio (Secretary)

16 August 2022 Braine-l’Alleud, Belgium

Philippe Weber Peter Wilden

Raymond De Vré Monika Casanova (Chief Human Resources Officer) Christina Del Vecchio (Secretary)

29 November 2022 Baar, Switzerland

Philippe Weber Peter Wilden

Raymond De Vré Monika Casanova (Chief Human Resources Officer) Christina Del Vecchio (Secretary)

During the course of 2022, the key topics discussed by the Remuneration and Nomination Committee included, among other things:

  • Review of the Group’s remuneration principles, strategy and structure
  • Review and proposal of 2021 variable short-term incentive for the members of the Executive Committee, including individual performance appraisal
  • Review and proposal of compensation proposals for AGM 2022
  • Review and proposal of individual performance targets and weighting for the 2022 variable short-term incentive for the members of the Executive Committee
  • Review of shareholders’ and proxy advisors’ feedback on the Remuneration Report 2021
  • Succession planning at PolyPeptide
  • Assessments of the Board of Directors and its Committees
  • Review and consideration of the expansion of PolyPeptide’s long-term incentive program (LTIP)
  • Review and discussion of the results of the benchmarking study for the Board of Directors and Executive Committee
  • General update on corporate governance trends and best practices as well as upcoming Swiss corporate law changes
  • Update on human capital management, including the Group’s human resources mid- and long-term plan and an overview of key people analytics
  • Discussion of the structure and approach to the Remuneration Report 2022, including analysis on remuneration disclosure
  • Review of ESG material topics assigned to the Remuneration and Nomination Committee
  • Review of the Remuneration and Nomination Committee Charter

3.5.3.2Audit and Risk Committee

The Audit and Risk Committee assists the Board of Directors with respect to matters involving the financial and risk management aspects of governance. The Audit and Risk Committee focuses on assessing the adequacy and effectiveness of the Group’s internal and prudential systems and controls in relation to both financial and non-financial risks. This includes compliance with legal and regulatory obligations, insurance and related matters. The Audit and Risk Committee will also obtain reasonable assurance with respect to the activity of the Internal Audit, evaluates the external auditors regarding the fulfillment of the necessary qualifications and independence according to the applicable legal provisions and makes proposals to the Board of Directors concerning the choice of the external auditors. The specific responsibilities and competencies, organization, functioning and reporting of the Audit and Risk Committee are set forth in section 5.2 of the Organizational Regulations as well as the Audit and Risk Committee Charter.

The members of the Audit and Risk Committee are appointed by the Board of Directors. At least one member, including the chairman, of the Audit and Risk Committee shall be independent. As of 31 December 2022, the Audit and Risk Committee consisted of two members: Beat In-Albon (chairman) and Erik Schropp.

2022 Audit and Risk Committee meetings and key topics

Since 1 January 2022, the Audit and Risk Committee met seven (7) times, in a combination of in-person sessions and video conferences, for an average duration of approximately one and a half (1.5) hours.

Date / place

Attendees

Other attendees

 

 

 

3 March 2022 Video Conference

Beat In-Albon Erik Schropp

Jan Fuhr Miller Christina Del Vecchio René Vestergaard (Director, Corporate Finance) Jonas Lavik Sonne (Group Controller, Corporate Finance) René Füglister (Partner, BDO) Fabian Hatzi (Manager BDO) Isilay Dagdelen (Secretary)

25 April 2022 Obbürgen, Switzerland

Beat In-Albon Erik Schropp

Jan Fuhr Miller, VC René Vestergaard (Director, Corporate Finance) Jonas Lavik Sonne (Group Controller, Corporate Finance, VC) Thomas Lorentzon (Global Director IS/IT, VC) Krister Svärd (Chief Information Security Officer, VC) René Füglister (Partner, BDO, VC) Isilay Dagdelen (Secretary)

10 June 2022 Video Conference

Beat In-Albon Erik Schropp

Jan Fuhr Miller Christina Del Vecchio René Vestergaard (Director, Corporate Finance) Jonas Lavik Sonne (Group Controller, Corporate Finance) Isilay Dagdelen (Secretary)

21 June 2022 Limhamn, Sweden

Beat In-Albon Erik Schropp

Jan Fuhr Miller René Vestergaard (Director, Corporate Finance) Jonas Lavik Sonne (Group Controller, Corporate Finance) Thomas Lorentzon (Global Director IS/IT) René Füglister (Partner, BDO, VC) Jesper Nygaard (Partner, Lockton Denmark) for Group insurance topic Isilay Dagdelen (Secretary)

8 August 2022 Video conference

Beat In-Albon Erik Schropp

Jan Fuhr Miller René Vestergaard (Director, Corporate Finance) Jonas Lavik Sonne (Group Controller, Corporate Finance) Michael Stäheli (Head of Investor Relations and Communications) René Füglister (Partner, BDO) Isilay Dagdelen (Secretary)

16 August 2022 Braine-l’Alleud, Belgium

Beat In-Albon Erik Schropp

Jan Fuhr Miller René Vestergaard (Director, Corporate Finance, VC) Jonas Lavik Sonne (Group Controller, Corporate Finance, VC) Thomas Lorentzon (Global Director IS/IT, VC) Krister Svärd (Chief Information Security Officer, VC) Isilay Dagdelen (Secretary)

29 November 2022 Baar, Switzerland

Beat In-Albon Erik Schropp

Jan Fuhr Miller René Vestergaard (Director, Corporate Finance, VC) Jonas Lavik Sonne (Group Controller, Corporate Finance, VC) Thomas Lorentzon (Global Director IS/IT) Krister Svärd (Chief Information Security Officer, VC) René Füglister (Partner, BDO, VC) Rebecca Weil (Head of Internal Audit) Michael Stäheli (Head of Investor Relations and Communications) Isilay Dagdelen (Secretary)

During the course of 2022, the key topics discussed by the Audit and Risk Committee included, among other things:

  • Review of 2021 BDO audit and full-year consolidated and standalone financial statements
  • Review of 2022 half-year consolidated financial statements
  • Review of the Group’s capital expenditure management processes
  • Implementation of the Group’s Internal Audit function, determination of the scope and planning of the internal audit
  • Establishment of an Enterprise Risk Management system and evaluation of the Group’s key risks / opportunities and mitigating / managing strategies
  • Review of the Group’s compliance programs, including the implementation of a more robust sanctions and trade compliance program, as well as monitoring of IT/(cyber)security matters
  • Assessment of the Group’s internal control system
  • Review of the Group’s insurance program and treasury policy
  • Evaluation of the Group’s external auditor
  • Review of ESG material topics assigned to the Audit and Risk Committee
  • Review of the Audit and Risk Committee Charter

3.5.3.3Innovation and Technology Committee

The Innovation and Technology Committee supports the Board of Directors and Executive Committee through the review of PolyPeptide’s technology plans and strategies, while monitoring existing and future trends in technology related or adjacent to PolyPeptide’s business. The specific responsibilities and competencies, organization, functioning and reporting of the Innovation and Technology Committee are set forth in section 5.4 of the Organizational Regulations as well as the Innovation and Technology Committee Charter.

The members of the Innovation and Technology Committee are appointed by the Board of Directors. The chairman of the Innovation and Technology Committee shall be independent. As of 31 December 2022, the Innovation and Technology Committee consisted of two members: Patrick Aebischer (chairman) and Jane Salik.

2022 Innovation and Technology Committee meetings and key topics

Since 1 January 2022, the Innovation and Technology Committee met four (4) times in person for an average duration of approximately two (2) hours.

Date / place

Attendees

Other attendees

 

 

 

25 April 2022 Obbürgen, Switzerland

Patrick Aebischer Jane Salik

Olivier Ludemann-Hombourger (Director Global Innovation & Technology) Christelle Bobier (Director Global Engineering and Manufacturing Technology, VC) Thomas Lorentzon (Global Director IS/IT, VC) Jon Holbech Rasmussen (Director Global Development / Regulatory / IP; Secretary )

21 June 2022 Limhamn, Sweden

Patrick Aebischer Jane Salik

Olivier Ludemann-Hombourger (Director Global Innovation & Technology) Jon Holbech Rasmussen (Director Global Development / Regulatory / IP; Secretary )

16 August 2022 Braine-l’Alleud, Belgium

Patrick Aebischer Jane Salik

Olivier Ludemann-Hombourger (Director Global Innovation & Technology) Neil Thompson (Director Global Sales and Marketing) Jon Holbech Rasmussen (Director Global Development / Regulatory / IP; Secretary )

29 November 2022 Baar, Switzerland

Patrick Aebischer Jane Salik

Olivier Ludemann-Hombourger (Director Global Innovation & Technology) Neil Thompson (Director Global Sales and Marketing) Jon Holbech Rasmussen (Director Global Development / Regulatory / IP; Secretary )

During the course of 2022, the key topics discussed by the Innovation and Technology Committee included, among other things:

  • Discussions on PolyPeptide’s green agenda, including the governance, priorities and objectives (i.e., green chemistry, green master plan and relevant KPIs)
  • Review of the Group’s digitalization strategy
  • Discussions on the industrial challenges related to peptide and nucleotide development and manufacturing
  • Considerations regarding potential strategic collaborations, access to experts and new related / adjacent business areas to support PolyPeptide’s innovation ambition
  • Review of ESG material topics assigned to the Innovation and Technology Committee
  • Review of the Innovation and Technology Committee Charter

3.5.3.4Chair’s Committee

The Chair’s Committee is intended to serve as a flexible body that nurtures and facilitates a strong relationship, efficient coordination and continuous information exchange between the Chairman of the Board, the chairman of each Committee and the CEO through roundtable discussions, with particular focus on the Group’s strategy and other key business matters. The Chair’s Committee was initially an ad hoc working group of the Board formed in May 2022. Realizing the benefit of the more frequent roundtable discussions, the Chairman proposed at the Board meeting on 30 November 2022 to formalize the ad hoc working group as a committee and, thus, constituted a new “Chair’s Committee”. The specific responsibilities and competencies, organization, functioning and reporting of the Chair’s Committee are set forth in section 5.5 of the Organizational Regulations as well as the Chair’s Committee Charter.

The members of the Chair’s Committee include the Chairman of the Board and the chairmen of each Committee (i.e., the chairman of the Remuneration and Nomination Committee, the chairman of the Audit and Risk Committee and the chairman of the Innovation and Technology Committee). As of 31 December 2022, the Chair’s Committee consisted of four members: Peter Wilden (Chairman), Beat In-Albon, Philippe Weber and Patrick Aebischer.

2022 Chair’s Committee meetings and key topics

Since 1 January 2022, the Chair’s Committee met seven (7) times, in a combination of in-person sessions and video conferences, for an average duration of approximately one (1) hour.

Date / place

Attendees

Other attendees

 

 

 

25 May 2022 Video Conference

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré (Secretary)

21 June 2022 Limhamn, Sweden

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré (Secretary)

22 July 2022 Video Conference

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré (Secretary)

16 August 2022 Braine-l’Alleud, Belgium

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré (Secretary)

27 September 2022 Video Conference

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré (Secretary)

29 November 2022 Baar, Switzerland

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré Christina Del Vecchio (Secretary)

20 December 2022 Video Conference

Peter Wilden Beat In-Albon Philippe Weber Patrick Aebischer

Raymond De Vré (Secretary)

During the course of 2022, the Chair’s Committee discussed various topics of strategic importance and other key business matters, including developments of the Group’s long-term strategic plan, operational developments and relationships with key customers as well as considerations around the Group’s budget for 2023.

3.6 Areas of responsibility between the Board of Directors and the Executive Committee

The Board of Directors’ responsibilities, duties and competencies and the procedural principles by which it is governed are specified by Swiss law, art. 17 of the Articles of Association and sections 2 through 5 of the Organizational Regulations. Importantly, the responsibilities of the Board of Directors include determining the strategy of PolyPeptide as well as the appointment, supervision and dismissal of the members of the Executive Committee.

Art. 17 of the Articles of Association sets out the non-transferable and irrevocable duties of the Board of Directors, and in addition to the non-transferable and irrevocable duties set out in art. 716a CO, the Board of Directors has the further non-transferable and irrevocable duties to (i) adopt resolutions and amendments to the Articles of Association regarding the subsequent payment of capital with respect to non-fully paid-in shares, (ii) adopt resolutions and amendments to the Articles of Association in relation to increases in share capital, (iii) examine compliance with the legal requirements regarding the appointment / election of the external auditors, and (iv) execute the agreements pursuant to art. 12, 36 and 70 of the Federal Act on Merger, Demerger, Transformation and Transfer of Assets (Merger Act).

While the Board of Directors is responsible for PolyPeptide’s ultimate strategic direction and supervision of management, through the Organizational Regulations the Board has delegated the responsibility and authority necessary or appropriate for carrying out the day-to-day and operational activities of PolyPeptide to the Executive Committee under the leadership of the CEO. Nevertheless, the Board of Directors retains certain duties (in addition to the non-transferable and irrevocable duties described above), such as annually approving the budgets and business plans for the Group, monitoring risks as well as ensuring that fundamental policies and controls are in place for compliance with applicable law and regulations. In addition, the Organizational Regulations set out specific parameters, including financial thresholds, for certain strategic, operational and financial matters that remain within the competence of the Board of Directors. This information is also set out in an authority chart, which is an annex to the Organizational Regulations.

The Executive Committee is responsible for ensuring the execution of the decisions of the Board of Directors and implementing the strategy of PolyPeptide in accordance with Swiss law, the Articles of Association, the Organizational Regulations and the resolutions of the shareholders’ meeting. The Executive Committee is led by the CEO and comprises the CEO, CFO, the Director of Global Sales and Marketing, the Director of Global Operations and the General Counsel, and such other officers as may be determined by the Board of Directors, in consultation with the CEO, from time to time. The Executive Committee has a dual function in the management of PolyPeptide. On the one hand, under the leadership of the CEO, the Executive Committee is responsible for the day-to-day business of the Company (to the extent not reserved to the Board); and, on the other hand, it is responsible for the operational business of the whole Group as well as of each individual site and subsidiary (to the extent that the respective competences are not reserved to the Board pursuant to the Organizational Regulations or are, by law, reserved to the boards of directors of the subsidiaries).

Pursuant to the Organizational Regulations, the CEO is appointed and removed by the Board of Directors upon recommendation of the Remuneration and Nomination Committee. The other members of the Executive Committee are appointed and removed by the Board of Directors upon recommendation of the Remuneration and Nomination Committee and in consultation with the CEO.

3.7 Information and control instruments vis-à-vis the Executive Committee

3.7.1Principles of Board information

The Board of Directors has different information instruments in place to oversee, monitor and control the implementation of PolyPeptide’s strategy as well as the execution of the responsibilities delegated to the Executive Committee.

Specifically, the Organizational Regulations require the CEO, together with the other members of the Executive Committee, to regularly inform the Board and its Committees at its ordinary meetings on the current course of business and all major business matters and important business developments, including anticipated opportunities and risks. Specifically, a report from the CEO is a standing agenda item at each ordinary board meeting where the CEO provides insight on the development of the Group’s business and key strategic initiatives.

In addition, the Chairman and the CEO are in contact at regular intervals with respect to all major corporate policy issues. Extraordinary matters, including significant unanticipated developments, must immediately be reported to the Chairman. In addition, the Directors shall be informed immediately of extraordinary events by way of circular letter or, if necessary, in advance by telephone, e-mail or facsimile.

Furthermore, each Director is entitled to request information concerning all of PolyPeptide’s affairs reasonably necessary to fulfill his or her fiduciary duties. For Directors requiring information or wishing to review documents outside of ordinary Board meetings, he or she must address his or her request in writing (including by e-mail) to the Chairman. To the extent necessary to fulfill his or her duties, each Director may further request in writing (including by e-mail) that the Chairman authorizes the inspection of the books and records of the Company. If the Chairman rejects a request for information, hearing or inspection, the Lead Independent Director or the Board shall decide whether to grant such request.

3.7.2Regular reports to the Board

As noted above, the Executive Committee regularly reports to the Board of Directors and its Committees at their respective ordinary meetings. In addition to these meetings, on a monthly basis the Board of Directors receives sales and financial reports with (i) an executive summary, (ii) an assessment of the Group’s monthly and year-to-date revenue, (iii) the profit and loss statement, the balance sheet and the cash flow statement, (iv) a capital expenditure overview as well as (v) selected Group KPIs, updates on various initiatives and the Group’s outlook. These monthly reports illustrate the actual financial results to-date, along with comparisons to the previous period and the budgeted amounts, all with accompanying commentaries (where relevant). Directors often react to these reports with questions that are responded to by the CFO. In addition, through the Audit and Risk Committee, the Board receives the reports of PolyPeptide’s external auditor in connection with the audit of the full-year financial statements and the review and procedures performed on the half-year financial statements.

3.7.3Enterprise Risk Management Framework

Beginning in the second half of 2021 and during the course of 2022, the Audit and Risk Committee, together with the CFO, the General Counsel and members of the finance team, implemented an Enterprise Risk Management Framework. While the Board of Directors retains the ultimate responsibility for risk management and for determining the appropriate level of risk that PolyPeptide is willing to accept, the PolyPeptide Management Committee (together with the Audit and Risk Committee) is responsible for ensuring that the operation of Enterprise Risk Management Framework is sound, including risk management of significant risks through the monitoring of specified actions.

The Enterprise Risk Management Framework is designed to provide a consistent, Group-wide perspective of key risks as well as any other risk areas as they are subsequently identified in connection with ongoing monitoring and updates by risk owners and other stakeholders. The objective of these risk assessments is to (i) make the principal risks to which PolyPeptide is exposed more transparent, (ii) determine treatment measures to control, eliminate and / or exploit the level of the risks while monitoring their effectiveness and (iii) ultimately improve risk management. To the extent that the ongoing evaluation of the Enterprise Risk Management Framework discovers significant unanticipated developments, the PolyPeptide Management Committee will immediately report these to the Audit and Risk Committee and the Chairman of the Board. The Directors must also be informed of extraordinary events (as described above).

The PolyPeptide Management Committee together with the General Counsel and other internal stakeholders annually conduct a risk assessment and evaluate strategies to address the risks and opportunities identified (e.g., mitigating / managing actions). A risk assessment report is then prepared, specifying and assessing the main Group risks in terms of their probability and consequences, and submitted at least once per year to the Audit and Risk Committee. In addition, the risk assessment report is presented to the Board of Directors at one of their annually scheduled meetings for a deep-dive focus and discussion on risk assessment and management. In 2022, the deep-dive session and approval of the 2022 risk assessment report took place at the 30 November 2022 Board meeting.

See also chapter Business Review.

3.7.4Internal controls

The Board of Directors is also responsible for designing, implementing, and maintaining the Group’s internal control system, which provides the ultimate oversight for PolyPeptide’s strategy, operations and finances. The Audit and Risk Committee supports the Board of Directors through the assessment of the adequacy and effectiveness of the Group’s internal and prudential systems and controls in respect of both financial and non-financial risks, including through discussions with and reviewing reports from the external auditor, internal officers and management. PolyPeptide’s internal control system is structured to ensure the correct disclosure and adequate coverage of control over all Group activities, with particular attention on areas considered potentially at risk. The external auditor confirms the existence of the internal control system in connection with the year-end audit.

According to the Organizational Regulations, the CFO, in cooperation with the CEO, ensures good financial governance, overseeing all financial planning, budgeting (short- and mid-term), reporting and risk management activities. Furthermore, the CFO leads the implementation of systems and procedures to seek compliance with regulatory requirements for financial information, reporting, disclosure requirements and internal control. The CFO and the Audit and Risk Committee regularly evaluate the risks of material misstatements in the consolidated financial statements and assess if the risks are reduced to an acceptable level by established and planned mitigating controls and processes. Significant risks are also continuously discussed in the meetings of the Executive Committee and the Audit and Risk Committee, which both take place on a regular basis. In 2022, the Audit and Risk Committee focused on six key areas of internal controls, specifically (i) revenue, (ii) inventories, (iii) payroll, (iv) property, plant and equipment, (v) financial reporting and closing processes and (vi) valuation of participations. During the course of 2022, the Audit and Risk Committee, together with the CFO and members of the finance team, evaluated key risks of financial misstatements in the identified key areas together with mitigating controls / processes currently in place, all of which were reviewed by the external auditor. In addition, improvement suggestions are submitted by the external auditor on a yearly basis, which are implemented by management in the following year.

3.7.5Internal Audit

In 2022, the Board of Directors, through the Audit and Risk Committee, was further supported by the newly established Internal Audit function within PolyPeptide led by the Head of Internal Audit, who joined the Group in October 2022. Internal Audit’s mission is to ensure that PolyPeptide’s operations are conducted according to high standards by providing an independent, objective assurance function and by advising on best practice. Through a systematic and disciplined approach, Internal Audit helps PolyPeptide accomplish its objectives by evaluating and improving the effectiveness of the Group’s risk management, control and governance processes. As is customary across the industry, the evaluation and internal audit of PolyPeptide’s GMP activities will remain with the Quality department under the supervision of the Director Global Quality.

Internal Audit is responsible for, among other things, (i) developing and implementing annual audit plans using appropriate risk-based methodology, (ii) evaluating and assessing significant merging / consolidating of functions and new or changing services, processes, operations, technologies and control processes at the time of their development, implementation or expansion, (iii) establishing an Internal Audit quality assurance program to ensure high standards of operations, (iv) issuing periodic reports to the Audit and Risk Committee as well as the Executive Committee, (v) participating in any investigations at PolyPeptide and (vi) recommending appropriate actions to correct any deficiencies identified. The Audit and Risk Committee reviews and approves the annual internal audit plan. Further information on the responsibilities of Internal Audit can be found in the Internal Audit Charter, which is an annex to the Organizational Regulations. Functionally, the Internal Audit department reports to the Audit and Risk Committee. Administratively, the Internal Audit department reports to the CFO.

During the course of 2022, Internal Audit (with the support of external advisors) performed two audits on vendor master data and month-end tasks across the Group’s three major sites. The audit results as well as the consultative project conclusions were presented to the Audit and Risk Committee during the second half of 2022. Moving forward and as part of the Audit and Risk Committee’s regularly scheduled meetings, the Head of Internal Audit (who joined the Group in October 2022) will provide progress updates on the approved audit plan as well as propose any modifications to the audit plan if risk priorities change and provide information on the status of management’s corrective actions.

See also chapter Business Review.

3.7.6Compliance controls

PolyPeptide is committed to the highest levels of ethics and integrity in the way that it does business and understands that this is crucial for its continued success and reputation. PolyPeptide’s core values and Code of Business Conduct and Ethics guide its everyday conduct. To monitor these efforts, the General Counsel shall be or shall designate another person as the Group’s governance, risk and compliance officer (“GRC Officer”). Currently, the General Counsel serves as the GRC Officer.

The GRC Officer is responsible for developing and maintaining compliance policies, promoting a culture of responsibility, maintaining risk management, identifying remediation needs, providing training and taking other steps to assist the Group in meeting its legal, regulatory and ethical obligations. The GRC Officer reports to the CEO. However, the GRC Officer also has direct access to the Audit and Risk Committee and reports to the Audit and Risk Committee whenever requested or if there exists a significant compliance or risk issue that involves or implicates a member of the Executive Committee which the GRC Officer believes cannot be or has not been appropriately addressed by, or directly implicates, the CEO.

PolyPeptide has recently implemented various compliance initiatives and is in the process of expanding these to respond to PolyPeptide’s ever-changing dynamic business environment. For example, in August 2022, PolyPeptide constituted a cross-functional Corporate Compliance Committee (the “CCC”) to promote compliance across the organization with a focus on corporate compliance issues and matters, including compliance with securities laws and regulations, data privacy as well as sanctions and trade. The GRC Officer, or a delegate of the GRC Officer, is responsible for reporting on at least a quarterly basis (or more frequently, as needed) to the Executive Committee and the Audit and Risk Committee. In addition, in the second half of 2022 PolyPeptide updated its Code of Business Conduct and Ethics and introduced an updated electronic learning tool aimed at reinforcing the principles set out therein.

Furthermore, in late 2021 PolyPeptide launched its own whistleblower programs and hotlines, with ongoing improvements throughout 2022, including applicable country specific adaptations, where anybody with knowledge or suspicion of illegal activities or serious irregularities at PolyPeptide can report these observations confidentially and even anonymously. To ensure independence, PolyPeptide has mandated the operation of its whistleblower hotlines to a third-party service provider. As of 31 December 2022, one report of possible misconduct was received through one of the available whistleblowing reporting channels. Following an internal investigation, which was conducted with the guidance of external experts, the allegations made in the report could not be confirmed. The report was subsequently closed and summarized to the Executive Committee and the Audit and Risk Committee, with modifications made to applicable policies and procedures where opportunities for improvement were identified.

The implementation of these and other compliance measures is supervised by and regularly reported to the Audit and Risk Committee.

3.7.7Quality assurance

To oversee and monitor PolyPeptide’s quality assurance, the CEO has designated this responsibility to the Director Global Quality who reports to the CEO and is part of the PolyPeptide Management Committee. The Director Global Quality supervises the Group’s quality control and quality assurance functions and is responsible for setting, reviewing, monitoring, revising and implementing the Group’s quality management, quality control systems and quality assurance programs to comply with regulatory requirements and ensure high quality products, processes and related customer support. In addition, the Director Global Quality is responsible for providing results-oriented leadership to sustain and improve an effective and efficient international quality organization comprised of quality operations, quality systems, supplier quality and quality control / analytical development subject matter domains. Currently, Landon Piluso serves as the Director Global Quality.

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