Last update 13 June 2019 (Excerpt of the Corporate Governance Report published in the Group Annual Report 2018)
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 appropriateness of the remuneration in the market environment.
The variable portion of the compensation emphasises the need for sustainability and achieving it fully depends significantly on the sustainable performance of the Company that extends beyond a single reporting year.
The performance-related compensation is limited. The maximum performance-related compensation that the Managing Board can receive by overachieving the tradi-tional targets in financial year 2018 is around 60% of fixed salary. Special bonus compensation can also be earned for appropriate special target achievement. In total, the Members of the Managing Board can earn variable compensation equal to a maximum of around 80% to around 105% of their fixed compensation in this way.
Large parts of performance-related compensation are only paid after a delay. The delay for the 2018 reporting year ex-tends to 2022. The deferred portions are awarded based on the sustainable performance of the Group.
The Managing Board is not entitled to performance-related compensation if performance fails to meet certain thresholds. Even if the targets are fully met in a given reporting year, because of the focus on sustainability, the full variable compensation is only awarded if the Group also achieves sustainable performance in the three following years.
The main performance criteria for variable compensation in 2018 were the combined ratio, premium growth, result before taxes and – as a non-financial objective – the promotion of social responsibility in practice, and for special bonus compensation those were country-specific targets and requirements related to cooperations.
Managing Board compensation does not include stock options or similar instruments.
Compensation plan for the members of the Supervisory Board
In accordance with the resolutions adopted by the 27th ordinary General Meeting on 25 May 2018, the Supervisory Board Members elected by the General Meeting are entitled to receive compensation in the form of a payment remitted monthly in advance. Supervisory Board Members 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 participating 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.