talanx group annual report 2011 en

Overall assessment of
the economic situation
Non-financial
performance indicators
Board remuneration model from 1 January 2011
Targets according to
area of responsibility 1)
Indicator for measuring
performance
Payment mode 2)
Time of pay-out
Corporate Governance Remuneration report Events of special
significance
ASSUMING 100% ACHIEVEMENT OF TARGETS
Fixed remuneration Variable remuneration
Group net income
(40 – 70%)
∅ Group RoE
of last 3 financial years
Cash
annual (60%)
Assessment of variable remuneration
Divisional net income
(0 – 40%)
∅ Divisional IVC
of last 3 financial years
Variable remuneration pursuant to regulatory requirements
Bonus bank
after 3 years (20%)
Pay-out of variable remuneration
1) Chairman/Chief Financial Officer: 70% Group net income, 30% individual performance (achievement of individual objectives)
Deputy Chairman: 50% Group net income, 30% divisional net income, 20% individual performance
Managers responsible for divisions: 40% Group net income, 40% divisional net income, 20% individual performance
Chief Information Officer: 40% Group net income, 60% individual performance
2) Split dictated by statutory minimum requirements
Components of the remuneration of the Board of Management
Fixed remuneration
The fixed remuneration is paid out in cash in twelve equal monthly
instalments. It is tailored especially to the range of duties and
functions and the professional experience of the individual Board
member. The Supervisory Board reviews the amount of the fixed
remuneration regularly, but at least every two years.
Non-cash/fringe benefits
The members of the Board of Management also receive certain nonperformance-related
fringe benefits in line with common market
practice, which are reviewed at regular intervals. They are given a
Risk report Forecast and
opportunities report
Individual performance
(20 – 60%)
Individual objectives
in the financial year
Talanx share awards
after 4 years (20%)
car for business and private use for the duration of their membership
of the Board. The individual Board member is responsible for
paying tax on the monetary value of the private use of the company
car. The company also grants its Board members insurance cover
on a reasonable scale (liability, accident and luggage insurance).
The non-cash and fringe benefits are reported at cost value in the
financial statements.
Travel and other expenses incurred in the company’s interest are
refunded to the Board members within reasonable limits.
Talanx Group. Annual Report 2011
89