Compensation Committee activities
Compensation Committee’s time allocation to key topics in 2012
The Compensation Committee has a predetermined annual agenda to ensure that important reviews take place at the appropriate times throughout the year. Along with these standing items, the Compensation Committee discusses matters relating to the Compensation Policy, labour market trends and regulatory developments. The Compensation Committee also conducts periodic self-reviews to ensure its continued high level of effectiveness and spends some time at each meeting in closed sessions. It held eight meetings during the reporting year and provided an update to the Board of Directors on decisions and topics discussed after each of these meetings. A summary of the topics dealt with by the Compensation Committee during the year is shown below.
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High-level overview on topics discussed |
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Variable compensation for the Group |
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At Swiss Re, the compensation cycle begins in December, with payments made in March /April of each year. The Compensation Committee oversees each stage of the process, starting with deciding on the variable compensation for the prior performance year, reviewing these decisions, and setting targets for the upcoming year. |
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Items relating to past performance cycle |
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Performance assessment process and proposal of the Annual Performance Incentive pool for the prior business year |
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January and February |
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Approval of performance factors for all deferred compensation awards |
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February |
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Review of the decisions made during the prior compensation cycle |
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June |
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Items relating to the upcoming performance cycle |
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Review and recommendation of the Leadership Performance Plan pool for the upcoming year |
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February |
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Setting of the performance targets for variable and long-term compensation for the upcoming year |
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February |
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Compensation and performance of Group EC and Group Management Board (GMB) members |
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The compensation of senior management follows the same cycle as that for the Group. Again, the Compensation Committee is fully involved through all stages of the process, and all decisions are driven by the Compensation Committee and the Board of Directors. |
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Performance assessment of the prior year |
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January and February |
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Approval of individual compensation proposals for the Group EC and review of |
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February |
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Analysis of Group EC members’ compensation relative to external peers |
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June |
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Analysis of GMB members’ compensation relative to external peers |
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December |
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Compliance and Regulatory |
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The Compensation Committee spends a considerable amount of time reviewing materials relating to regulatory or statutory reporting. In addition, the structure of the Compensation Committee and its advisors is reviewed on an ongoing basis. |
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Review and proposal of the Compensation Report |
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January and February |
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Compliance and regulatory developments and submissions |
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All meetings |
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Review of the role and mandate of external advisors |
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June |
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Review of compensation framework |
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In light of ongoing investor and regulator feedback as well as the organisational restructuring, a full review of the compensation framework was initiated during the second half of 2011. The implementation continued in 2012 rolling into 2013. At the various meetings proposals were reviewed and approved by the Compensation Committee. |
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All meetings |
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