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Overview of the compensation components

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

In addition Swiss Re aims to ensure that total compensation is well-balanced in terms of fixed versus variable remuneration 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 the compensation and benefit elements which are explained in the next section.

Summary of compensation and benefit components

 

Fixed

Variable compensation

Participation plans

Benefits

*

under the Incentive Share Plan

 

(short-term)

(short-term)

(long-term)

(long-term)

(long-term)

 

Base salary

Cash API

VAI (deferred API)

LPP

GSPP

ISP

Benefits

Eligibility

All employees

All employees

Employees with an API at or above USD 100 000

Upon Group CEO invitation

All employees

 

Upon Group CEO invitation (approx. 250 employees)

Purpose

Attract and retain

Pay for performance

Pay for performance

Pay for performance

Alignment to shareholders

Alignment to shareholders

Protection against risks

Plan duration

 

 

3 years

5 years for EC and GMB members 3 years for all other participants

3 years

1 year

 

Drivers

Role and experience

Company, business unit and individual performance

Business performance

Business performance

Market practice

Settlement

Cash (immediate)

Cash and/or shares*

Cash (deferred)

Shares

Shares

Shares

Pension, insurances, perquisites

Performance KPI ’s

 

Business and Individual performance

Measurement of the economic impact of reserving accuracy

Relative TSR ROE

 

 

 

Performance period

 

1 year

3 years

3 years

 

 

 

Performance range

 

0%–200% of target

50%–150%

0%–150%

 

 

 

Impact of share price on payout

no

no

no

yes

yes

yes

no

Forfeiture rules

no

yes

yes

yes

yes (on match)

no

no