Compensation Committee activities
Compensation Committee’s time allocation to key topics in 2013
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.
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High-level overview of topics discussed |
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Variable compensation for the Group |
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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. |
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Items relating to past performance cycle |
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Financial review and confirmation of the API pool funding methodology |
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December |
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Performance assessment process and proposal of the API pool for the prior business year |
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January and February |
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Approval of performance factors for deferred compensation awards |
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February and April |
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Review of the decisions made during the prior compensation cycle |
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June |
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Items relating to the upcoming performance cycle |
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Review and recommendation of the LPP pool for the upcoming year |
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January and February |
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Setting of the performance targets for variable and long-term compensation for the upcoming year |
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February |
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Review LPP plan duration and vesting curve for PSU |
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December |
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Compensation and performance of Group EC and GMB members |
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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. |
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Performance assessment of the prior year |
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January and February |
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Approval of individual compensation proposals for the Group EC and review of compensation proposals for the GMB |
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February |
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Analysis of Group EC members’ compensation relative to external peers |
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June |
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Analysis of GMB members’ compensation relative to external peers |
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December |
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Compensation of the Board of Directors |
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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. |
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Fees of the Board of Directors for the following compensation period |
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February and April |
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Review of the Board of Directors compensation policy |
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June, September and December |
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Compensation principles and plans |
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Compensation framework: review and approval of proposals related to the implementation of the revised framework |
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January, February and June |
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Annual benefits review |
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June |
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Review of the Group Compensation Policy |
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September |
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Compliance and regulatory |
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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. |
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Review and proposal of the Compensation Report |
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January, February, June and December |
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Compliance and regulatory developments and submissions |
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All meetings |
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Review of the role and mandate of external advisors |
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June |
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