Annual Performance Incentive and Incentive Share Plan (ISP)
Annual Performance Incentive
The API is a discretionary, variable component of compensation. Combined with the base salary, it provides competitive total cash compensation when both business and individual performance targets are achieved.
In 2012 Swiss Re introduced the concept of Target API along with a revised Performance Management framework that provides equal weighting to “behavioural” criteria along with quantitative “results” for senior executives (with planned further roll-out within the company going forward). In this way, API is awarded both for objectives achieved and for demonstration of desired behaviours. The Target API is set in advance for each eligible employee based on multiple factors, including market benchmarks, with payout linked both to Swiss Re’s results and to individual performance.
Assessment of the performance of the members of the Group EC will be based on the Group and their respective business area as well as their individual contribution.
When the total API level for an employee exceeds a pre-defined amount, the variable pay is delivered in two components: a cash incentive payment (cash API) and VAI (deferred API).
Incentive Share Plan (ISP)
Employees also have the opportunity to take some or all of their cash API in the form of Swiss Re shares at a discount of 10% and subject to a one-year blocking period (the Incentive Share Plan), encouraging alignment with shareholder interests. After one year, the employee assumes full ownership of the shares.