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Compensation Committee activities

Compensation Committee’s time allocation to key topics in 2013

Compensation Committee’s time allocation to key topics in 2013 (pie chart)

The Compensation Committee has a predetermined annual agenda to ensure that important reviews take place at the appropriate times throughout the year. The Compensation Committee also
conducts periodic self-assessments to ensure its continued high level of effectiveness and spends some time at each meeting in executive sessions. It held six meetings during 2013 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.

 

High-level overview of topics discussed

Meeting

 

 

 

 

 

 

 

 

Variable compensation for the Group

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

Items relating to past performance cycle

 

 

 

 

Financial review and confirmation of the API pool funding methodology

 

December

 

 

Performance assessment process and proposal of the API pool for the prior business year

 

January and February

 

 

Approval of performance factors for deferred compensation awards

 

February and April

 

 

Review of the decisions made during the prior compensation cycle

 

June

 

 

 

 

 

 

 

 

Items relating to the upcoming performance cycle

 

 

 

 

Review and recommendation of the LPP pool for the upcoming year

 

January and February

 

 

Setting of the performance targets for variable and long-term compensation for the upcoming year

 

February

 

 

Review LPP plan duration and vesting curve for PSU

 

December

 

 

 

 

 

 

 

 

Compensation and performance of Group EC and GMB members

 

 

 

 

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 owned by the Compensation Committee and the Board of Directors.

 

 

 

 

Performance assessment of the prior year

 

January and February

 

 

Approval of individual compensation proposals for the Group EC and review of compensation proposals for the GMB

 

February

 

 

Analysis of Group EC members’ compensation relative to external peers

 

June

 

 

Analysis of GMB members’ compensation relative to external peers

 

December

 

 

 

 

 

 

 

 

Compensation of the Board of Directors

 

 

 

 

The compensation of the Board of Directors is reviewed annually and the Compensation Committee formulates proposals for the attention of the Board of Directors accordingly.

 

 

 

 

Fees of the Board of Directors for the following compensation period

 

February and April

 

 

Review of the Board of Directors compensation policy

 

June, September and December

 

 

 

 

 

 

 

 

Compensation principles and plans

 

 

 

 

Compensation framework: review and approval of proposals related to the implementation of the revised framework

 

January, February and June

 

 

Annual benefits review

 

June

 

 

Review of the Group Compensation Policy

 

September

 

 

 

 

 

 

 

 

Compliance and regulatory

 

 

 

 

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.

 

 

 

 

Review and proposal of the Compensation Report

 

January, February, June and December

 

 

Compliance and regulatory developments and submissions

 

All meetings

 

 

Review of the role and mandate of external advisors

 

June