Compensation Policy
Building on the overarching compensation principles included in Swiss Re’s Articles of Association, the compensation framework is captured within the Swiss Re Group Compensation Policy (Compensation Policy). The Compensation Policy governs the compensation structure and processes across all functions and locations at Swiss Re and is reviewed regularly.
The Board of Directors has approved an authority matrix that defines the limits to which each level of management can authorise compensation payments. The Group CEO, the Compensation Committee or the Board of Directors, as applicable, approves all compensation that exceeds the preset limits. In line with best practice for Corporate Governance purposes, the Group CEO is not involved in decision-making concerning his own compensation.
The Human Resources function conducts a regular self-assessment of Swiss Re’s Compensation Policy. The Compensation Committee reviews this self-assessment and identifies potential areas for improvement. It also receives reports on compensation decisions as appropriate, including a comprehensive review of the effectiveness of the annual compensation review cycle.
Swiss Re assesses its Compensation Policy against FINMA requirements. As part of this process, the Risk Management function annually reviews risks related to the Compensation Policy and reports its findings to the Compensation Committee.
To reflect best practices, the Compensation Policy prohibits the use of any personal hedging strategies or remuneration and liability-related insurance that could undermine the risk alignment effects and economic exposure embedded in compensation arrangements.
The Compensation Policy is implemented globally to the extent possible. Variations may apply at the regional and business unit level to accommodate specific requirements, eg talent management and compliance with local regulations.
Overview of key compensation and benefits components for Group EC members and other employees
Swiss Re aims for total compensation that is competitive in the market. Swiss Re also seeks 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.
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Fixed compensation |
Variable compensation* |
Participation plans |
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(short-term) |
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(long-term) |
(long-term) |
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Base salary |
Benefits |
Cash API |
VAI (deferred API) |
LPP |
GSPP |
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Eligibility |
All employees |
All employees |
All employees |
Employees with an API at or above USD 100 000 |
Group EC members and other key employees |
All employees |
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Purpose |
Attract and retain |
Risk protection, market competitiveness, connection to Swiss Re values |
Pay for performance |
Pay for sustained performance |
Alignment with future performance and shareholders |
Alignment to shareholders |
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Plan |
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3 years |
5 years for Group EC members and other key executives** (including a 2-year holding period); 3 years for remaining participants |
3 years |
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Drivers |
Role and experience |
Market practice |
Business and individual performance |
Business performance |
Business performance |
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Settlement |
Cash (immediate) |
Pension, insurances, cash |
Cash |
Cash (deferred) |
Shares |
Shares |
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Performance KPIs |
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Business and individual performance |
Measurement of the economic impact of profit/loss from previous years’ business |
ROE |
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Performance period |
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1 year |
3 years |
3 years |
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Payout range |
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0 to 2 × TAPI |
50% to 150% of deferred API |
RSUs: 0% to 100% |
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Share price impact |
No |
No |
No |
No |
Yes |
Yes |
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Forfeiture rules |
No |
In certain plans |
Yes |
Yes |
Yes |
Yes (on match) |
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Clawback rules |
No |
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Yes |
Yes |
Yes |
Yes (on match) |
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