Compensation Committee activities

Compensation Committee’s time allocation to key topics in 2013

Compensation Committee’s time allocation to key topics in 2013 (pie chart)

The Compensation Committee has a predetermined annual agenda to ensure that important reviews take place at the appropriate times throughout the year. The Compensation Committee also
conducts periodic self-assessments to ensure its continued high level of effectiveness and spends some time at each meeting in executive sessions. It held six meetings during 2013 and provided an update to the Board of Directors on decisions and topics discussed after each of these meetings. A summary of the topics dealt with by the Compensation Committee during the year is shown below.


High-level overview of topics discussed










Variable compensation for the Group





At Swiss Re, the compensation cycle begins in December, with payments made in March/April of each year. The Compensation Committee oversees each stage of the process, starting with deciding on the variable compensation for the prior performance year, reviewing these decisions, and setting targets for the upcoming year.











Items relating to past performance cycle





Financial review and confirmation of the API pool funding methodology





Performance assessment process and proposal of the API pool for the prior business year


January and February



Approval of performance factors for deferred compensation awards


February and April



Review of the decisions made during the prior compensation cycle











Items relating to the upcoming performance cycle





Review and recommendation of the LPP pool for the upcoming year


January and February



Setting of the performance targets for variable and long-term compensation for the upcoming year





Review LPP plan duration and vesting curve for PSU











Compensation and performance of Group EC and GMB members





The compensation of senior management follows the same cycle as that for the Group. Again, the Compensation Committee is fully involved through all stages of the process, and all decisions are owned by the Compensation Committee and the Board of Directors.





Performance assessment of the prior year


January and February



Approval of individual compensation proposals for the Group EC and review of compensation proposals for the GMB





Analysis of Group EC members’ compensation relative to external peers





Analysis of GMB members’ compensation relative to external peers











Compensation of the Board of Directors





The compensation of the Board of Directors is reviewed annually and the Compensation Committee formulates proposals for the attention of the Board of Directors accordingly.





Fees of the Board of Directors for the following compensation period


February and April



Review of the Board of Directors compensation policy


June, September and December









Compensation principles and plans





Compensation framework: review and approval of proposals related to the implementation of the revised framework


January, February and June



Annual benefits review





Review of the Group Compensation Policy











Compliance and regulatory





The Compensation Committee spends a considerable amount of time reviewing materials relating to regulatory or statutory reporting. In addition, the structure of the Compensation Committee and its advisors is reviewed on an ongoing basis.





Review and proposal of the Compensation Report


January, February, June and December



Compliance and regulatory developments and submissions


All meetings



Review of the role and mandate of external advisors