Compensation decisions for the Group EC

Compensation mix for Group EC 2015

Compensation mix for Group EC 2014

The variable compensation awarded to all members of the Group EC (including the Group CEO) totalled CHF 32.5 million for 2015, compared to CHF 28.1 million for 2014. The following table covers payments to 12 members for 2015 who were all employed for the full year. The 2014 payments cover 13 members, of whom 11 were employed for the full year.

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13 members⁷

12 members

CHF thousands

2014

2015

¹	Consisting of housing, schooling, lump sum expenses, child and similar allowances.
²	For 2015, subject to shareholder approval at the AGM 2016. For 2014, as part of the aggregate amount of short-term variable compensation approved by the shareholders at the AGM 2015.
³	Disclosure reflects all awards for a reporting year, ie the 2014 value reflects the fair value of LPP awards granted in April 2014 and the 2015 value reflects the fair value of LPP granted in April 2015.
⁴	Covers payments reflecting the time in the role as Group EC members.
⁵	For members leaving during the reporting period, this covers only legally or contractually required payments for the period when the member was no longer in the role (eg base salary when on garden leave).
⁶	Amounts are gross and include social security contributions of the employees. Additionally and not included are company contributions to social security systems paid by Swiss Re in line with applicable laws which amounted to CHF 3 802 474 in 2014 and CHF 3 755 675 in 2015.
⁷	Represents incumbents and not positions.

Base salary and allowances¹

12 711

12 905

Funding of pension benefits

1 845

1 913

Total fixed compensation

14 556

14 818

Cash Annual Performance Incentive²

9 036

11 028

Value Alignment Incentive²

7 620

9 314

Leadership Performance Plan³

11 400

12 200

Total variable compensation

28 056

32 542

Total fixed and variable compensation⁴

42 612

47 360

Compensation due to members leaving⁵

Total compensation⁶

42 612

47 360

Compensation decisions for the Group CEO

Michel M. Liès, Group CEO since February 2012

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CHF thousands

2014

2015

¹	For 2015, subject to shareholders approval at the AGM 2016. For 2014, as part of the aggregate amount of short-term variable compensation approved by the shareholders at the AGM 2015.
²	Disclosure reflects all awards for a reporting year, ie the 2014 value reflects the fair value of the LPP award granted in April 2014 and the 2015 value reflects the fair value of the LPP award granted in April 2015.
³	Amounts are gross and include social security contributions of the employee. Additionally and not included are company contributions to social security systems paid by Swiss Re in line with applicable laws which amounted to CHF 359 721 in 2014 and CHF 813 446 in 2015.

Base salary and allowances

1 651

1 638

Funding of pension benefits

177

178

Total fixed compensation

1 828

1 816

Cash Annual Performance Incentive¹

1 250

1 600

Value Alignment Incentive¹

1 250

1 600

Leadership Performance Plan²

2 000

Total variable compensation

4 500

5 200

Total compensation³

6 328

7 016

Additional information on compensation decisions

Amounts reported under base salary and allowances include the base salary which is paid in cash, and benefits or allowances paid in cash.

For US GAAP and statutory reporting purposes, VAI and long-term incentive awards are accrued over the period during which they are earned. For the purpose of the disclosure required in this Compensation Report, the value of awards granted is included as compensation in the year of performance for the years 2014 and 2015 respectively.

Each member of the Group EC including the Group CEO participates in a defined-contribution pension scheme. The funding of pension benefits shown in the two tables and section above reflects the actual employer contributions.

Other payments to members of the Group EC

During 2015, no payments (or waivers of claims) other than those set out in the section compensation decisions in 2015 were made to current members of the Group EC or persons closely related.

Shares held by members of the Group EC

The following table reflects total current Swiss Re share ownership by members of the Group EC as of 31 December:

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Members of the Group EC

2014

2015

¹	Chairman Admin Re^® until May 2015.

Michel M. Liès, Group CEO

187 690

262 808

David Cole, Group Chief Financial Officer

28 755

54 207

John Dacey, Group Chief Strategy Officer, Chairman Admin Re^®1

171

Guido Fürer, Group Chief Investment Officer

32 315

42 302

Agostino Galvagni, CEO Corporate Solutions

64 860

65 816

Jean-Jacques Henchoz, CEO Reinsurance EMEA

38 280

35 476

Christian Mumenthaler, CEO Reinsurance

40 000

50 000

Moses Ojeisekhoba, CEO Reinsurance Asia

14 369

26 404

J. Eric Smith, CEO Swiss Re Americas

16 990

Matthias Weber, Group Chief Underwriting Officer

57 649

25 410

Thomas Wellauer, Group Chief Operating Officer

75 973

116 111

Total

539 936

695 695

Vested options held by members of the Group EC

The following table reflects total vested option ownership by members of the Group EC as of 31 December:

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Members of the Group EC	2014	2015
Weighted average strike price in CHF	74.34	n/a
Michel Liès, Group CEO	15 000	0
Matthias Weber, Group Chief Underwriting Officer	3 500	0
Total	18 500	0

Swiss Re granted options to senior management in the past and the last grant was made in 2006. The underlying strike price for the outstanding option series has been adjusted for special dividend payouts. The remaining vested options held by active members of the Group EC expired in 2015.

Leadership Performance Plan units held by members of the Group EC

The following table reflects total unvested LPP units (RSUs and PSUs) held by members of the Group EC as of 31 December:

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	2014	2015
Michel Liès, Group CEO	133 290	99 490
David Cole, Group Chief Financial Officer	60 160	49 755
John R. Dacey, Group Chief Strategy Officer, Chairman Admin Re^®	34 210	49 755
Guido Fürer, Group Chief Investment Officer	47 190	49 755
Agostino Galvagni, CEO Corporate Solutions	60 160	49 755
Jean-Jacques Henchoz, CEO Reinsurance EMEA	48 135	39 805
Christian Mumenthaler, CEO Reinsurance	60 160	49 755
Moses Ojeisekhoba, CEO Reinsurance Asia	48 135	39 805
J. Eric Smith, CEO Swiss Re Americas	48 135	39 805
Matthias Weber, Group Chief Underwriting Officer	60 160	49 755
Thomas Wellauer, Group Chief Operating Officer	60 160	49 755
Patrick Raaflaub, Group Chief Risk Officer	0	12 435
Total	659 895	579 625

Loans to members of the Group EC

As per Art. 27 of the Articles of Association, credits and loans to members of the Group EC may be granted at employee conditions applicable for the Swiss Re Group, with a cap on the total amount of such credits and loans outstanding per member.

In general, credit is secured against real estate or pledged shares. The terms and conditions of loans and mortgages are typically the same as those available to all employees of Swiss Re Group in their particular locations to the extent possible. For example, in Switzerland fixed-rate mortgages have a maturity of five years and interest rates that correspond to the five-year Swiss franc swap rate plus a margin of 10 basis points.

Swiss-based variable-rate mortgages have no agreed maturity dates. The basic preferential interest rates equal the corresponding interest rates applied by the Zurich Cantonal Bank minus one percentage point. Where fixed or floating interest rates are preferential, the value of this benefit has been included in the line item “base salary and allowances” above.

The following table reflects total mortgages and loans for members of the Group EC as of 31 December:

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CHF thousands

2014

2015

¹	The member of the Group EC having the highest mortgage in 2014 transferred the mortgage to a bank in 2015.

Total mortgages and loans to members of the Group EC

2 411

420

Highest mortgages and loans to an individual member of the Group EC¹:

Christian Mumenthaler

1 895

n/a

J. Eric Smith

n/a

420

Total mortgages and loans not at market conditions to former members of the Group EC

4 300