talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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90<br />
The Talanx Group Strategy Enterprise<br />
managem<strong>en</strong>t<br />
Talanx Group. Annual Report <strong>2011</strong><br />
Research and<br />
developm<strong>en</strong>t<br />
Assessm<strong>en</strong>t basis/preconditions for paym<strong>en</strong>t of the variable remuneration as of <strong>2011</strong><br />
Markets and<br />
g<strong>en</strong>eral conditions<br />
Business<br />
developm<strong>en</strong>t<br />
Remuneration compon<strong>en</strong>t Assessm<strong>en</strong>t basis/parameters Preconditions for paym<strong>en</strong>t<br />
Group bonus<br />
Perc<strong>en</strong>tage of variable remuneration<br />
Chief Executive Officer and<br />
Chief Financial Officer: 70%<br />
Deputy Chief Executive Officer: 50%<br />
Chief Information Officer: 40%<br />
Division Manager: 40%<br />
Divisional bonus<br />
Perc<strong>en</strong>tage of variable remuneration<br />
Chief Executive Officer, Chief Financial Officer<br />
and Chief Information Officer: 0%<br />
Deputy Chief Executive Officer: 30%<br />
Division Managers: 40%<br />
Perfomance bonus<br />
Perc<strong>en</strong>tage of variable remuneration<br />
Chief Executive Officer and<br />
Chief Financial Officer: 30%<br />
Chief Information Officer: 60%<br />
Deputy Chief Executive Officer and Division<br />
Managers: 20%<br />
Breakdown of pay-out of the variable remuneration<br />
Group return on equity (RoE); Individual basic<br />
amount (staggered dep<strong>en</strong>ding on area of<br />
responsi bility and professional experi<strong>en</strong>ce) per<br />
0.1 perc<strong>en</strong>tage point by which the average return<br />
on equity (RoE) of the last three financial years<br />
(FY) exceeds the risk-free interest rate (for the<br />
first time in 2013; for <strong>2011</strong> only RoE for FY <strong>2011</strong><br />
as assessm<strong>en</strong>t period, for 2012: average RoE for<br />
FY <strong>2011</strong> and 2012)<br />
100% = 12.8% RoE<br />
Cap max: 200%<br />
Cap min: –100% (malus);<br />
Calculation of the bonus will be am<strong>en</strong>ded if the<br />
risk-free interest rate changes by one perc<strong>en</strong>tage<br />
point or more;<br />
Calculation of RoE: Group profit for the year<br />
calculated according to IFRS (without non-controlling<br />
interests) ÷ arithmetic mean of the Group<br />
equity to IFRS (without non-controlling interests)<br />
at the start and <strong>en</strong>d of the financial year.<br />
Evaluation of the intrinsic value creation (IVC) of<br />
the business areas within the individual’s area of<br />
responsibility<br />
Main criteria for IVC: relative change versus<br />
previous year, absolute amount, comparison<br />
with targets, distribution or profit transfer ratio,<br />
g<strong>en</strong>eral market <strong>en</strong>vironm<strong>en</strong>t<br />
100% = amount x = targets fully achieved<br />
Cap max: 200%<br />
Cap min: EUR 0<br />
First used for 2013, until th<strong>en</strong> refinem<strong>en</strong>t of the<br />
IVC concept and resolution by the Supervisory<br />
Board at its prud<strong>en</strong>t discretion.<br />
Individual qualitative and quantitative targets;<br />
personal contribution to overall result, leadership<br />
skills, innovation, <strong>en</strong>trepr<strong>en</strong>eurial skills, specific<br />
remit factors<br />
100% = amount x = targets fully achieved<br />
Cap max: 200%<br />
Cap min: EUR 0<br />
Short term Medium term Long term<br />
60% of the variable remuneration with the<br />
next monthly salary paym<strong>en</strong>t<br />
following the resolution by the Supervisory Board<br />
20% of the variable remuneration<br />
allocated to the bonus bank<br />
withheld for three years<br />
Pay-out of the positive amount allocated three<br />
years prior to the pay-out, provided that this does<br />
not exceed the balance in the bonus bank after<br />
all credits/debits up to and including those for<br />
the most rec<strong>en</strong>t financial year<br />
Any amounts due for disbursem<strong>en</strong>t that are not<br />
covered by the balance in the bonus bank are<br />
forfeited<br />
Claims on the bonus bank forfeited in special<br />
cases: termination of office without material<br />
grounds; ext<strong>en</strong>sion of contract at same terms<br />
rejected<br />
No interest payable on positive balance<br />
Agreem<strong>en</strong>t in contract<br />
Achievem<strong>en</strong>t of three-year targets<br />
Assets and<br />
financial position<br />
Achievem<strong>en</strong>t of targets for the year<br />
until 2013: Supervisory Board determines the<br />
degree of target achievem<strong>en</strong>t at its prud<strong>en</strong>t<br />
discretion<br />
from 2013: achievem<strong>en</strong>t of the IVC<br />
Achievem<strong>en</strong>t of targets for the year<br />
Supervisory Board determines the degree of<br />
target achievem<strong>en</strong>t at its prud<strong>en</strong>t discretion<br />
Automatic allocation of virtual Talanx share<br />
awards to a value equival<strong>en</strong>t to 20% of the<br />
variable remuneration<br />
On expiry of the four-year ret<strong>en</strong>tion period: payout<br />
of the curr<strong>en</strong>t value at the time of pay-out<br />
Valuation of shares for allocation/pay-out:<br />
unweighted arithmetic mean of the Xetra closing<br />
prices over a period of five trading days before to<br />
five trading after the meeting of the Supervisory<br />
Board that approves the consolidated financial<br />
statem<strong>en</strong>ts<br />
Pay-out of the total amount of all divid<strong>en</strong>ds<br />
accumulated during the ret<strong>en</strong>tion period<br />
Changes in the value of the share awards by<br />
on aggregate 10% or more due to structural<br />
measures triggers adjustm<strong>en</strong>t<br />
Negative total of variable bonuses = pay-out of EUR 0 of variable remuneration.<br />
A negative value of the total variable bonuses in any financial year is transfered in full to the bonus bank (see “Medium term” column).