Last update 21 April 2017 (Excerpt of the Corporate Governance Report published in the Group Annual Report 2016)
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 and achieving it fully depends critically on an analysis of the sustainable performance of the Company that extends beyond 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 2016 is approximately is between 60% and 65% of fixed compensation. Large parts of the performance-related compensation are only paid after a delay. The delay for financial year 2016 extends to 2020. The deffered portions are awarded based on the sustainable performance of the Group, and non-financial factors are included in the evaluation of target achievement. For example, the performance-related compensation for 2016 is awarded based on promotion of those aspects of corporate governance that lead to the expression of social responsibility in practice. Bonus compensation can also be earned for appropriate target achievement. In total, the members of the Managing Board can earn variable compensation equal to a maximus of between 81% and 93% of their fixed compensation in this way. The Managing Board is not entitled to the performance-related component of compensation if performance fails to meet certain thresholds. Even if the targets are fully met in a financial year, because of the focus on sustainability, the full variable compensation is only awarded if the Company also achieves positive performance in the tree following years.
In 2016, the key performance criteria for variable compensation are the combined ratio, premium development, profit before taxes. The key performance criteria for bonus compensation are country-specific targets.
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.