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Annual Report 2017

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

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

*

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

**

For Group EC members the API payout range is additionally capped at 3 × annual base salary.

 

Fixed

 

Variable compensation

Participation plans

 

 

 

(short-term)

 

(long-term)

(long-term)

 

Base salary

Benefits

Cash API

VAI (de­ferred API)

LPP

GSPP

ISP

Eligibility

All employees

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

Purpose

Attract and retain

Risk protection, market com­petitive­ness, connection to Swiss Re values

Pay for perfor­mance

Pay for sustained perfor­mance

Alignment with future perfor­mance

Alignment to share­holders

Alignment to share­holders

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

Market practice

Business and individual perfor­mance

Business performance

Business perfor­mance

 

 

Settlement

Cash (immediate)

Pension, insur­ances, cash

Cash and/or shares (under the ISP)

Cash (deferred)

Shares

Shares

Shares

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 2 × TAPI**

50% to 150% of deferred API

RSUs: 0% to 100%
PSUs: 0% to 200%

 

 

Share price impact

No

No

No

No

Yes

Yes

Yes

Forfeiture rules

No

In certain plans

Yes

Yes

Yes

Yes
(on match)

No

Clawback rules

No

 

Yes

Yes

Yes

No

No