On CEO Martin Hoffmann’s Salary Surge: A Closer Look

Zürich, Switzerland – The Swiss performance sportswear brand On is experiencing a period of significant growth, recently surpassing 3 billion Swiss Francs in revenue. However, recent attention has shifted from the company’s financial success to the substantial increase in compensation for its CEO, Martin Hoffmann. In 2025, Hoffmann’s total remuneration reached 9.8 million Swiss Francs, a significant jump from the 4 million Francs he earned the previous year, prompting questions about executive pay in the current economic climate.

Growth and Executive Compensation

On, known for its running shoes and athletic apparel, has demonstrated impressive growth in recent years. The company’s success is mirrored in the increased financial rewards for its leadership. The substantial rise in Hoffmann’s compensation, first reported by the Swiss publication Handelszeitung, has sparked debate, with some labeling the increase as excessive. This isn’t the first time executive pay has drawn scrutiny in Switzerland; the 2002 revelation of UBS Chairman Marcel Ospel’s 12.5 million Franc income caused a public outcry. More recently, Novartis CEO Vas Narasimhan received 25 million Francs in compensation, setting a high benchmark for executive earnings.

However, a closer examination reveals a more nuanced picture of Hoffmann’s 2025 earnings. According to reports, 5 million Swiss Francs of his total compensation was a one-time, performance-based bonus paid in company stock, tied to his promotion to sole CEO and continued role as CFO. This incentive was part of a multi-year program designed to reward leadership and drive company performance.

Comparing Hoffmann’s Pay to Industry Peers

When compared to other leaders in the sportswear industry, Hoffmann’s compensation falls within a competitive range. Björn Gulden, CEO of Adidas, earned slightly more than 7 million Euros in 2024. Yasuhito Hirota, the CEO of Asics, received less than 2 million. This suggests that Hoffmann’s pay is substantial, but not entirely out of line with the industry standard for companies experiencing rapid growth and success.

The timing of Hoffmann’s bonus coincides with a period of strong financial performance for On. In the third quarter of 2024, the company reported a record revenue of 636 million Swiss Francs, a 32% increase compared to the previous year. This growth was partially attributed to the Olympic Games in Paris, where On served as the official outfitter for the Swiss Olympic delegation, featuring 66 athletes. Hoffmann noted that the brand’s visibility doubled in the United States and tripled in Paris as a result of the Olympic partnership.

Investor Concerns and Future Outlook

Despite the company’s strong financial results, On’s stock price is currently 17% lower than it was a year ago. On does not currently pay dividends or repurchase shares, leading some investors to question whether they are adequately sharing in the company’s success. This disconnect between executive compensation and shareholder returns is a common point of contention in corporate governance discussions.

The introduction of On’s “LightSpray” technology, first showcased in Paris, is also expected to contribute to future growth. The company’s continued focus on innovation and strategic partnerships, such as the collaboration with Zendaya, are aimed at expanding its brand reach and appealing to a younger demographic.

Martin Hoffmann’s dual role as CEO and CFO underscores his central importance to On’s strategic direction. His leadership has been instrumental in navigating the company through a period of rapid expansion and increasing competition in the global sportswear market. The company’s continued success will likely depend on its ability to maintain its growth trajectory, manage costs effectively, and deliver value to both customers and shareholders.

Looking ahead, On will be closely watched by investors and industry analysts to see if it can sustain its momentum and translate its financial success into long-term shareholder value. The company’s next earnings report will provide further insight into its performance and future prospects.

On is scheduled to announce its first-quarter 2026 earnings on May 15, 2026. Investors will be paying close attention to revenue growth, profitability, and any updates on the company’s share repurchase or dividend plans.

What are your thoughts on executive compensation in the sportswear industry? Share your opinions in the comments below.