Overview of the compensation components

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

In addition, Swiss Re aims to ensure that total compensation is well-balanced in terms of fixed versus variable compensation 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 Swiss Re’s compensation and benefit components which are now further described.

Summary of compensation and benefit components

 

Fixed

Variable compensation

Participation plans

Benefits

 

(short-term)

(short-term)

 

(long-term)

(long-term)

(long-term)

 

Base salary

Cash API

VAI (de­ferred API)

LPP

GSPP

ISP

Benefits

*

Group Managing Directors

Eligibility

All employees

All employees

Employees with an API at or above USD 100 000

Upon Group CEO invitation

All employees

All employees

All em­ploy­ees

Purpose

Attract and retain

Pay for performance

Pay for sustained performance

Alignment with future performance

Alignment to shareholders

Alignment to shareholders

Risk protection, market competitive­ness, connection to Swiss Re values

Plan duration

 

 

3 years

5 years for Group EC members and GMDs* and 3 years for the majority of 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 (under the ISP)

Cash (deferred)

Shares

Shares

Shares

Pension, insurances, cash

Performance KPIs

 

Business and individual performance

Measurement of the economic impact of profit/ loss from previous years’ business

Relative TSR
ROE

 

 

 

Performance period

 

1 year

3 years

3 years

 

 

 

Performance range

 

0 to 2x TAPI

50%–150% of deferred API

RSUs: 0%–100%
PSUs: 0%–200%

 

 

 

Impact of share price on payout

no

no

no

yes

yes

yes

no

Forfeiture rules

no

yes

yes

yes

yes (on match)

no

yes