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
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Fixed |
Variable compensation |
Participation plans |
Benefits |
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(short-term) |
(short-term) |
(long-term) |
(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 |
Upon Group CEO invitation |
All employees |
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Upon Group CEO invitation (approx. 250 employees) |
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Purpose |
Attract and retain |
Pay for performance |
Pay for performance |
Pay for performance |
Alignment to shareholders |
Alignment to shareholders |
Protection against risks |
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Plan duration |
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|
3 years |
5 years for EC and GMB members 3 years for all other participants |
3 years |
1 year |
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Drivers |
Role and experience |
Company, business unit and individual performance |
Business performance |
Business performance |
– |
– |
Market practice |
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Settlement |
Cash (immediate) |
Cash and/or shares* |
Cash (deferred) |
Shares |
Shares |
Shares |
Pension, insurances, perquisites |
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Performance KPI ’s |
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Business and Individual performance |
Measurement of the economic impact of reserving accuracy |
Relative TSR ROE |
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Performance period |
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1 year |
3 years |
3 years |
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|
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Performance range |
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0%–200% of target |
50%–150% |
0%–150% |
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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 |
no |
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