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
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Fixed |
Variable compensation |
Participation plans |
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(short-term) |
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(long-term) |
(long-term) |
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Base salary |
Cash API |
VAI (deferred API) |
LPP |
GSPP |
ISP |
Benefits |
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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 |
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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 |
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Plan duration |
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3 years |
5 years for Group EC members and other key executives* and 3 years for the majority of participants |
3 years |
1 year |
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Drivers |
Role and experience |
Company, Business and individual performance |
Business performance |
Business performance |
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Market practice |
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Settlement |
Cash (immediate) |
Cash and/or shares (under the ISP) |
Cash (deferred) |
Shares |
Shares |
Shares |
Pension, insurances, cash |
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Performance KPIs |
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Business and individual performance |
Measurement of the economic impact of profit/ loss from previous years’ business |
Relative TSR |
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Performance period |
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1 year |
3 years |
3 years |
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Payout range |
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0 to 2x TAPI |
50%–150% of deferred API |
RSUs: 0%–100% |
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Impact of share price on payout |
No |
No |
No |
Yes |
Yes |
Yes |
No |
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Forfeiture rules |
No |
Yes |
Yes |
Yes |
Yes (on match) |
No |
In certain plans |
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Clawback rules |
No |
Yes |
Yes |
Yes |
No |
No |
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