Annual Performance Incentive Purpose
The API is a discretionary, variable component of compensation. Combined with the base salary, it provides competitive total cash compensation when both business and individual performance targets are achieved.
Swiss Re operates a Target API (TAPI) system along with a performance management framework that provides equal weighting to results-oriented and behavioural related performance criteria for all employees. API is awarded for both objectives achieved and the demonstration of desired behaviours.
A TAPI is set based on multiple factors, but primarily on the role being performed and market benchmarks. Similar to the determination of the base salary, the employee’s total compensation and overall pay-mix are taken into account, when setting the TAPI. The possible payout for the API ranges from 0 to 2x TAPI.
API is generally settled in cash. When the total API level for an employee exceeds a pre-defined amount, the award is split into two components: an immediate cash incentive payment (cash API) and a deferred API (VAI).
Employees can invest some or all of their cash API in shares under the Incentive Share Plan (ISP).