Overview of the compensation components

Compensation at Swiss Re is designed to encourage individual performance, company achievement and alignment with shareholder value. Annual and long-term incentives are balanced to reflect the risk-aligned performance of the Group, the business function, and the individual.

Swiss Re aims for total compensation that is competitive with that for equivalent positions in comparable companies in each of its markets.

The illustration on this page shows a summary of the compensation elements which are explained in the next section.

Summary of compensation elements

		Base salary	Annual Performance Incentive (API)	Value Alignment Incentive (VAI)	Leadership Performance Plan (LPP)
Eligible employees		All employees	All employees	Employees with an API over USD 100 000	Upon Group CEO invitation (approx. 250 employees)
Basis for funding		Role and experience	EVM results US GAAP results Qualitative drivers	No separate pool (deferred part of API)	Affordability and future strategy
Basis for individual assessment		Role and experience	Company, business unit and individual performance	Deferral table	Individual role, performance and talent assessment
Payout		Immediate	Immediate	Vests after 3 years	Vests after 3 years
Payout affected by	Share price	No	No	No	Yes
	Forfeiture rules	No	Yes	Yes	Yes
	KPIs	None	Business and individual performance	EVM profit margin development over 3-year period	Relative TSR RoE
Performance range		None	0%–200% (of target)	50%–150%	0%–150%
Settlement		Cash	Cash and shares	Cash	Shares