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
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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 |
All employees |
All employees |
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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 |
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Plan duration |
|
|
3 years |
5 years for Group EC members and GMDs* and 3 years for the majority of participants |
3 years |
1 year |
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Drivers |
Role and experience |
Company, Business Unit and individual performance |
Business performance |
Business performance |
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|
Market practice |
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Settlement |
Cash (immediate) |
Cash and/or shares (under the ISP) |
Cash (deferred) |
Shares |
Shares |
Shares |
Pension, insurances, cash |
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Performance KPIs |
|
Business and individual performance |
Measurement of the economic impact of profit/ loss from previous years’ business |
Relative TSR |
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|
|
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Performance period |
|
1 year |
3 years |
3 years |
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|
|
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Performance range |
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0 to 2x TAPI |
50%–150% of deferred API |
RSUs: 0%–100% |
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|
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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 |
yes |
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