Last update 18 April 2016 (Excerpt of the Corporate Governance Report published in the Group Annual Report 2015)
Compensation plan for members of the Managing Board
Managing Board compensation takes into account the importance of the Group and the responsibility that goes with it, the economic situation of the Company, and the market environment.
The variable portion of the compensation emphasises the need for sustainability in a number of ways. Its achievement depends to a large extent on satisfying the performance criteria that extend beyond a single financial year.
The performance-related compensation is limited. The maximum performance-related compensation that the Managing Board can receive by overachieving the traditional targets in financial year 2015 is approximately 86% of its fixed salary. The awarding of such compensation requires that consideration be given to the sustainable development of the Company and the Group; non-financial factors, in particular those resulting from the Company’s commitment to social responsibility, are also taken into account when target achievement is assessed. These bonuses can be earned when the corresponding objectives are achieved. Overall, this means that variable remuneration components are possible up to a level of approximately 125% of the fixed remuneration. The Managing Board is not entitled to the performance-related component of compensation if performance fails to meet certain thresholds. Even if the performance target is met in a financial year, because of the focus on sustainability, the full variable compensation is only awarded if satisfactory performance is also reported in the following year.
In 2015, the key performance criteria for variable compensation are the combined ratio, premium development, profit before taxes for the years 2015 and 2016, and for the special payments for country-specific goals on the one hand, and IT-related goals on the other hand – in each case relating to the 2015–2016 period.
Managing Board compensation does not include stock options or similar instruments.
Compensation plan for the members of the Supervisory Board
In accordance with resolutions adopted by the 21st regular general meeting on 4 May 2012, the members of the Supervisory Board elected by the general meeting are entitled to receive compensation in the form of a payment remitted monthly in advance. Members of the Supervisory Board who withdraw from their positions before the end of a month still receive full compensation for the month in question. In addition to this compensation, Supervisory Board members are entitled to receive an attendance allowance for participating in Supervisory Board meetings and Supervisory Board committee meetings (remitted after participation in the meeting).
Supervisory Board compensation does not include stock options or similar instruments.
For further information please have a look at our Corporate Governance Report.