Finance and governance

Despite the complexities of the financial environment, we have maintained a steady course, securing modest but impactful growth in our activities. Our commitment to excellence in research, innovation, and education remains unwavering, with our sustainability initiatives showing resilience even amidst tightening financial conditions.

In 2024, global financial markets face a complex landscape marked by moderated inflation and ongoing interest rate adjustments amid persistent geopolitical tensions. While growth remains subdued, market sentiment shows cautious optimism, with sectors adapting to evolving economic conditions.

Looking forward, while global uncertainties persist, we are poised to capitalize on emerging opportunities, leveraging our innovative edge to continue leading the field of orthopedic education and development.

Financial overview and income statement

The 2024 operating result decreased by 5 %, totaling CHF -44.0 million, primarily due to a slight 1 % decline in operating income, which amounted to CHF 110.0 million, and a 1 % increase in operating expenses, totaling CHF -154.0 million. However, the financial result significantly strengthened overall performance, showing a 57 % increase from CHF 88.0 million in the previous year to CHF 138.1 million in 2024. This financial result reflects the resilience of our asset and investment management and its ability to capitalize on favorable market conditions. As a result, the 2024 net result saw a remarkable improvement, reaching CHF 94.1 million—an increase of 104 % compared to CHF 46.0 million in 2023. This performance drove an equity increase of CHF 93.9 million, or 7 %, bringing total equity to CHF 1,488 million, up from CHF 1,394 million in 2023.

Find the financial overview and the income statement 2024 in comparison to the previous year here:

Asset management

The asset management result shows a return on investment of +10.8 %. Assets under management at the end of 2024 amounted to CHF 1,432 million.

Transparency

According to its Transparency Policy, the AO Foundation annually publishes the total remuneration of the AO Foundation Board (AO FB), international boards of the clinical divisions and units, and the AO Executive Management, in addition to disclosing all scientific grants to third parties.

Remunerations per board

The total remunerations summarized for all governance activities of the International Funding Boards in 2024 were CHF 1,411,750 (2023: CHF 1,399,250) which is 0.92% (2023: 0.91%) of the total Operating Expenses of the AO Foundation and its institutions. The table below shows the total remuneration of each individual International Board in absolute amounts CHF and as a percent of the total amount of individual operational expenses, as well as the absolute amount of the highest individual remuneration amount within each board in 2024:

Remuneration of the AO Executive Committee (AO EC) and the relative ratio between the highest and the lowest paid individual compensation of all permanent employees.

The total annual compensation of the six members of the AO EC 2024 was CHF 1,980,534 (2023: CHF 1,966,496). The highest individual compensation was CHF 355,572 resulting in a 1/6.97 relative ratio between the highest and the lowest paid individual compensation (permanent employees).

Assignment of scientific and other grants to third party organizations

In 2024, the AO Foundation funded research projects with scientific and other grants totaling CHF 3,179,876 benefiting 77 different third-party organizations (2023: CHF 2,990,748).