Overview of the compensation components for Group EC members and other employees

Swiss Re aims for total compensation that is competitive in the market.

In addition, Swiss Re seeks to ensure that total compensation is well-balanced in terms of fixed versus variable compensation and in terms of short-term versus long-term incentives. This is to encourage sustainable performance and appropriate risk-taking.

The illustration below shows a summary of Swiss Re’s compensation and benefit components which are now further described.

Summary of compensation and benefit components

 

Fixed

Variable compensation

Participation plans

 

 

 

(short-term)

 

(long-term)

(long-term)

 

 

Base salary

Cash API

VAI (de­ferred API)

LPP

GSPP

ISP

Benefits

*

Certain members of Business Unit Executive Committees (BU ECs) and all Group Managing Directors (GMDs).

Eligibility

All employees

All employees

Employees with an API at or above USD 100 000

Group EC members and other employees upon Group CEO invitation

All employees

All employees

All em­ploy­ees

Purpose

Attract and retain

Pay for performance

Pay for sustained performance

Alignment with future performance

Alignment to shareholders

Alignment to shareholders

Risk protection, market competitive­ness, connection to Swiss Re values

Plan duration

 

 

3 years

5 years for Group EC members and other key executives* and 3 years for the majority of participants

3 years

1 year

 

Drivers

Role and experience

Company, Business and individual performance

Business performance

Business performance

 

 

Market practice

Settlement

Cash (immediate)

Cash and/or shares (under the ISP)

Cash (deferred)

Shares

Shares

Shares

Pension, insurances, cash

Performance KPIs

 

Business and individual performance

Measurement of the economic impact of profit/ loss from previous years’ business

Relative TSR
ROE

 

 

 

Performance period

 

1 year

3 years

3 years

 

 

 

Payout range

 

0 to 2x TAPI

50%–150% of deferred API

RSUs: 0%–100%
PSUs: 0%–200%

 

 

 

Impact of share price on payout

No

No

No

Yes

Yes

Yes

No

Forfeiture rules

No

Yes

Yes

Yes

Yes (on match)

No

In certain plans

Clawback rules

No

Yes

Yes

Yes

No

No