Share-based compensation (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Share-Based Payment Arrangements [Abstract] |
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| Schedule of Terms and Conditions of Share-based Payment Arrangement |
Overview of the different programs:
| | | | | | Long Term Incentive Plan 2021 ("LTIP 2021") | In 2021, the LTIP 2021 was implemented to replace the existing share-based compensation plans in place at the time and is the currently active share-based compensation plan for equity compensation to On's team members. Awards under the LTIP 2021 are granted as RSU's or PSU's and are subject to time-based and in the case of PSU's performance-based vesting conditions.
In March 2025, the LTIP 2021 was amended to modify the vesting schedule of new RSU grants and to revise the performance cycle allocation for new PSU grants beginning in the fiscal year 2025. These amendments only apply to new grants issued in March 2025 and onwards.
RSU grants issued subsequent to the March 2025 amendment will vest in 12 equal quarterly tranches, commencing one quarter following the date of grant, subject to a participant's continuous employment and unless otherwise agreed in a participant's award agreement. This amendment eliminates the one-year cliff vesting schedule previously in effect.
Prior to the amendment in March 2025, 34% of RSU's granted vested on the first anniversary of the grant date, with the remaining balance vesting in eight equal quarterly tranches of 8.25% each, commencing at the end of first quarter following the first anniversary of the grant date.
PSU grants issued subsequent to the March 2025 amendment are allocated across two performance cycles: a two year performance cycle and a three year cycle. Subject to a participant's continuous employment, the achievement of the performance conditions as well as the resulting vesting factor and unless otherwise agreed in a participant's award agreement, the PSU's vest in full 24 months following the grant date (for a two year performance cycle) and 36 months following the granting date (for a three year performance cycle).
PSU's granted to members of On's Executive Board are subject to a market-based award multiplier, based on the achievement of On's total shareholder return relative to a broad market index measured over the same two year and three year performance cycle.
Prior to the amendment in March 2025, PSU awards were split equally, with 50% subject to a two-year performance cycle and 50% subject to a three-year performance cycle. The amendment approved in March 2025 resulted in a shift in the allocation of PSU awards. For grants issued during the 2025 fiscal year, the allocation shifted to 25% of the granted PSUs being subject to a two-year performance cycle and 75% being subject to a three-year performance cycle. For all PSU grants issued in 2026 and subsequent years, 100% of the granted PSUs will be subject solely to a three-year performance cycle. Regardless of the applicable performance cycle, the vesting of PSU awards remains subject to the achievement of the performance conditions, measured over the respective performance cycle, and the resulting vesting factor, as well as the participant's continuous employment, unless otherwise agreed in a participant's award agreement.
Upon vesting, the awards are distributed to participants in the form of shares as soon as operationally feasible. | Compensation of non-executive members of the Board of Directors of On 2019 ("BOD 2019") | Awards under the share-based compensation program for non-executive members of the Board of Directors are granted as RSU's. These awards are granted to On's non-executive board members that receive equity compensation for their services as members of On's Board of Directors on a quarterly basis.
The RSU's are not subject to vesting requirements and immediately vest upon grant, subject to an administrative period to allow for the acceptance of awards by participants. | | |
| | | | | | Tax Recognition Plan 2022 ("TRP 2022") | In 2022 and 2023, RSU's were granted to certain employees of On who were subject to elevated tax obligations in connection with prior grants of equity incentive awards or RSU's vesting in connection with the Company's IPO. In 2024 and 2025, no RSU's were granted pursuant to this plan.
The RSU's immediately vested upon grant, subject to an administrative period to allow for the acceptance of awards by participants. |
| | | | | | Service, License, and Investment Agreement 2019 ("SLIA") | In 2019, a “service, license and investment agreement” was negotiated between On and third parties, including the payment of share-based compensation in exchange for the services provided by the third parties. Awards under the SLIA 2019 were granted as options. The milestone-based vesting criteria include the achievement of certain Net Sales thresholds for the fiscal year ended December 31, 2023 as well as the fiscal year ended December 31, 2024. The respective milestones were reached, and the formal vesting of the options occurred upon publication of the annual report for the fiscal year ended December 31, 2023, as well as the fiscal year ended December 31, 2024, respectively.
Vested options were exercised within the six month anniversary of the applicable vesting date. |
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| Schedule of Expenses Arising from Share-based Payment Transactions |
Total expenses arising from share-based payment transactions during the period were as follows: | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | | (CHF in millions) | | 2025 | | 2024 | | 2023 | | | | | | | | | | | | | | | | LTIP 2021 | | 61.5 | | | 51.9 | | | 24.4 | | Other(1) | | 1.0 | | | 19.6 | | | 7.4 | | Total share-based compensation expense(2) | | 62.6 | | | 71.5 | | | 31.8 | |
(1) Other includes social charges attributable to the respective plans, and share-based compensation expense associated with BOD 2019 and other plans. Social charges are settled in cash and consider any costs related to local legal requirements related to share-based compensation. Refer to note 6.3 Provisions for additional information on social charges. (2) Share-based compensation is recorded within line item selling, general and administrative expenses in the consolidated statements of income. As of December 31, 2025, On has recognized an increase in shareholders' equity in the balance sheet of CHF 66.6 million and CHF 57.5 million for share-based compensation incurred during the twelve-month periods ended December 31, 2025 and December 31, 2024.
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| Schedule of Other Equity Instruments |
A summary of activity under the plan types as of December 31, 2025, December 31, 2024, and changes during the years ending on those dates, is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Plan type | | Stock options (Class A Shares)(1) | | Stock options (Class B Shares)(2) | | | RSU's(3) | | PSU's(4) | | | Number of options | | Weighted average exercise price US$ | | Number of options | | Weighted average exercise price US$ | | | Number of shares | | Number of shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Awards outstanding at January 1, 2024 | | 9,102,323 | | | 3.46 | | | 15,812,500 | | | 0.77 | | | | 849,504 | | | 1,067,215 | | | Awards granted | | — | | | n/a | | — | | | n/a | | | 629,831 | | | 834,743 | | Awards forfeited / expired | | (3,940) | | | 11.69 | | | — | | | n/a | | | (71,220) | | | (21,962) | | Awards exercised / vested | | (4,588,738) | | | 5.92 | | | — | | | n/a | | | (519,510) | | | — | | | Awards outstanding at December 31, 2024 | | 4,509,645 | | | 4.13 | | | 15,812,500 | | | 0.77 | | | | 888,605 | | | 1,879,996 | | | weighted average contractual life remaining (years) | | 0.4 | | n/a | | — | | | n/a | | | 0.9 | | | 1.1 | | maximum term (years) | | 0.8 | | n/a | | — | | | n/a | | | 3.0 | | | 2.2 | | exercisable | | 4,509,645 | | | 4.13 | | | 15,812,500 | | | 0.77 | | | | 2,000 | | | — | | | | Awards outstanding at January 1, 2025 | | 4,509,645 | | | 4.13 | | | 15,812,500 | | | 0.77 | | | | 888,605 | | | 1,879,996 | | | Awards granted | | — | | | n/a | | — | | | n/a | | | 782,575 | | | 1,508,630 | | Awards forfeited / expired | | (4,766) | | | 11.33 | | | — | | | n/a | | | (103,891) | | | (67,211) | | | Conversion of Class B to Class A shares | | 316,250 | | | 7.77 | | | (3,162,500) | | | 0.77 | | | | — | | | — | | Awards exercised / vested | | (3,460,373) | | | 2.81 | | | (6,325,000) | | | 0.77 | | | | (723,546) | | | (1,228,218) | | | Awards outstanding at December 31, 2025 | | 1,360,756 | | | 8.30 | | | 6,325,000 | | | 0.77 | | | | 843,743 | | | 2,093,197 | | | weighted average contractual life remaining (years) | | — | | | n/a | | — | | | n/a | | | 0.4 | | | 0.7 | | maximum term (years) | | — | | | n/a | | — | | | n/a | | | 4.3 | | | 2.2 | | exercisable | | 1,360,756 | | | 8.30 | | | 6,325,000 | | | 0.77 | | | | 262 | | | — | |
(1) The following plans are included within Stock options (Class A shares): LTPP 2018, LTIP 2018, LTIP 2020 (Class A Shares), and SLIA 2019. (2) The following plan is included within Stock options (Class B shares): LTIP 2020 (Class B Shares). (3) The following plans are included within RSU's: BoD 2019, LTIP 2021 RSUs, and Founders' Plan 2021. (4) The following plan is included within PSU's: LTIP 2021 PSU.
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| Schedule of Share Options |
A summary of activity under the plan types as of December 31, 2025, December 31, 2024, and changes during the years ending on those dates, is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Plan type | | Stock options (Class A Shares)(1) | | Stock options (Class B Shares)(2) | | | RSU's(3) | | PSU's(4) | | | Number of options | | Weighted average exercise price US$ | | Number of options | | Weighted average exercise price US$ | | | Number of shares | | Number of shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Awards outstanding at January 1, 2024 | | 9,102,323 | | | 3.46 | | | 15,812,500 | | | 0.77 | | | | 849,504 | | | 1,067,215 | | | Awards granted | | — | | | n/a | | — | | | n/a | | | 629,831 | | | 834,743 | | Awards forfeited / expired | | (3,940) | | | 11.69 | | | — | | | n/a | | | (71,220) | | | (21,962) | | Awards exercised / vested | | (4,588,738) | | | 5.92 | | | — | | | n/a | | | (519,510) | | | — | | | Awards outstanding at December 31, 2024 | | 4,509,645 | | | 4.13 | | | 15,812,500 | | | 0.77 | | | | 888,605 | | | 1,879,996 | | | weighted average contractual life remaining (years) | | 0.4 | | n/a | | — | | | n/a | | | 0.9 | | | 1.1 | | maximum term (years) | | 0.8 | | n/a | | — | | | n/a | | | 3.0 | | | 2.2 | | exercisable | | 4,509,645 | | | 4.13 | | | 15,812,500 | | | 0.77 | | | | 2,000 | | | — | | | | Awards outstanding at January 1, 2025 | | 4,509,645 | | | 4.13 | | | 15,812,500 | | | 0.77 | | | | 888,605 | | | 1,879,996 | | | Awards granted | | — | | | n/a | | — | | | n/a | | | 782,575 | | | 1,508,630 | | Awards forfeited / expired | | (4,766) | | | 11.33 | | | — | | | n/a | | | (103,891) | | | (67,211) | | | Conversion of Class B to Class A shares | | 316,250 | | | 7.77 | | | (3,162,500) | | | 0.77 | | | | — | | | — | | Awards exercised / vested | | (3,460,373) | | | 2.81 | | | (6,325,000) | | | 0.77 | | | | (723,546) | | | (1,228,218) | | | Awards outstanding at December 31, 2025 | | 1,360,756 | | | 8.30 | | | 6,325,000 | | | 0.77 | | | | 843,743 | | | 2,093,197 | | | weighted average contractual life remaining (years) | | — | | | n/a | | — | | | n/a | | | 0.4 | | | 0.7 | | maximum term (years) | | — | | | n/a | | — | | | n/a | | | 4.3 | | | 2.2 | | exercisable | | 1,360,756 | | | 8.30 | | | 6,325,000 | | | 0.77 | | | | 262 | | | — | |
(1) The following plans are included within Stock options (Class A shares): LTPP 2018, LTIP 2018, LTIP 2020 (Class A Shares), and SLIA 2019. (2) The following plan is included within Stock options (Class B shares): LTIP 2020 (Class B Shares). (3) The following plans are included within RSU's: BoD 2019, LTIP 2021 RSUs, and Founders' Plan 2021. (4) The following plan is included within PSU's: LTIP 2021 PSU.
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| Schedule of Valuation Inputs, Other Equity Instruments |
Inputs used in the measurement of the fair values at grant date of the equity compensation plans were as follows:
For the year ended December 31, 2025
| | | | | | | | | | | | | | | | Plan | | Grant Date | | Share price on measurement date (CHF) | | | | | | | | | | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | March 24, 2025 | | 42.73 | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | June 23, 2025 | | 43.18 | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | September 22, 2025 | | 36.18 | | LTIP 2021 (RSU's) | | October 1, 2025 | | 32.65 | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | December 15, 2025 | | 38.00 | | | | | |
For the year ended December 31, 2024
| | | | | | | | | | | | | | | | | | | Plan | | Grant Date | | Share price on measurement date (CHF) | | | | | | | | | | | | | | | | | | | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | March 25, 2024 | | 31.07 | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | June 24, 2024 | | 34.88 | | | BOD 2019 | | July 10, 2024 | | 32.94 | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | September 23, 2024 | | 42.74 | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | December 16, 2024 | | 51.65 | |
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| Schedule of Valuation Inputs, Share Options |
Inputs used in the measurement of the fair values at grant date of the equity compensation plans were as follows:
For the year ended December 31, 2025
| | | | | | | | | | | | | | | | Plan | | Grant Date | | Share price on measurement date (CHF) | | | | | | | | | | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | March 24, 2025 | | 42.73 | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | June 23, 2025 | | 43.18 | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | September 22, 2025 | | 36.18 | | LTIP 2021 (RSU's) | | October 1, 2025 | | 32.65 | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | December 15, 2025 | | 38.00 | | | | | |
For the year ended December 31, 2024
| | | | | | | | | | | | | | | | | | | Plan | | Grant Date | | Share price on measurement date (CHF) | | | | | | | | | | | | | | | | | | | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | March 25, 2024 | | 31.07 | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | June 24, 2024 | | 34.88 | | | BOD 2019 | | July 10, 2024 | | 32.94 | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | September 23, 2024 | | 42.74 | | | LTIP 2021 (PSU's and RSU's) & BOD 2019 | | December 16, 2024 | | 51.65 | |
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