Compensation highlights in 2019

Pay for performance

The Compensation Committee ensures that Group EC compensation is linked to the business performance of Swiss Re by delivering a substantial portion of compensation in the form of performance-related incentives.

All employees
Pay for performance – All employees (bar chart)
Group EC
Pay for performance – Group EC (bar chart)
Group CEO
Pay for performance – Group CEO (bar chart)

1 Variable/performance related, whereby VAI and LPP are deferred

The Compensation Committee monitors how compensation is aligned with specific business metrics, including US GAAP net income and EVM profit.

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USD millions (unless otherwise stated)

2017

2018

change

2019

change

1

Dividend payments are made in April of the following year. For 2019, an ordinary dividend of CHF 5.90 is proposed to the AGM 2020.

2

Disclosure includes all awards for a reporting year, ie the 2019 aggregated compensation values include the fair value of the Leadership Performance Plan (LPP) granted in April 2019. The total Annual Performance Incentive (API) for 2019 for members of the Group EC is subject to approval by the shareholders at the AGM 2020. For individuals who left the Group EC during or before the reporting period, disclosure also includes legally or contractually required payments for the period when the individual was no longer in a Group EC position (eg base salary when on garden leave).

3

Including the Group CEO as well as individuals holding a Group EC position at one point during a reporting year. The existing functions of Group Chief Human Resources Officer and Group Chief Legal Officer were added to the Group EC in 2019. As a result, the number of individuals who held a Group EC position at one point during the reporting year has increased to 16 in 2019. Of the 16 individuals, nine were active for the full year 2019 on the Group EC.

US GAAP net income

331

421

27%

727

73%

EVM profit

–9

–693

–

–19

–

Regular dividend payments (CHF)1

5.00

5.60

12%

5.90

5%

Financial Strength Rating (Standard & Poor’s)

AA-

AA-

 

AA-

 

Total equity

34 294

28 727

–16%

31 037

8%

Regular staff worldwide

14 485

14 943

 

15 401

 

Aggregate compensation for all employees (CHF millions)2

2 165

2 208

2%

2 310

5%

Group EC members3

14

14

 

16

 

Aggregate Group EC compensation (CHF thousands)2, 3

43 159

44 253

3%

47 002

6%

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Attribution of group income to key stakeholders

USD millions (unless otherwise stated)

2017

%

2018

%

2019

%

1

FY 2019 is estimated based on the average monthly CHF/USD FX rate as of February 2020. The dividend is subject to AGM approval and the amount depends on the final number of dividend eligible shares and FX rates upon dividend payout.

2

Includes shares bought back between 6 May 2019 and 18 February 2020 as part of the buyback programme authorised at the AGM 2019. The total amount represents an estimate translated at the respective period average rate.

Income before tax and variable compensation

814

100%

863

100%

1 218

100%

Variable compensation

351

43%

373

43%

351

29%

Income tax expense

132

16%

69

8%

140

11%

US GAAP net income attributable to shareholders

331

 

421

 

727

 

of which paid out as dividend1

1 592

196%

1 659

192%

1 766

145%

of which share buyback

1 032

127%

1 020

118%

1 0102

83%

of which added to retained earnings within shareholders’ equity

–2 293

–

–2 258

–

–2 049

–