talanx group annual report 2011 en

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The Talanx Group Strategy Enterprise
management
Talanx Group. Annual Report 2011
Research and
development
Assessment basis/preconditions for payment of the variable remuneration as of 2011
Markets and
general conditions
Business
development
Remuneration component Assessment basis/parameters Preconditions for payment
Group bonus
Percentage of variable remuneration
Chief Executive Officer and
Chief Financial Officer: 70%
Deputy Chief Executive Officer: 50%
Chief Information Officer: 40%
Division Manager: 40%
Divisional bonus
Percentage of variable remuneration
Chief Executive Officer, Chief Financial Officer
and Chief Information Officer: 0%
Deputy Chief Executive Officer: 30%
Division Managers: 40%
Perfomance bonus
Percentage of variable remuneration
Chief Executive Officer and
Chief Financial Officer: 30%
Chief Information Officer: 60%
Deputy Chief Executive Officer and Division
Managers: 20%
Breakdown of pay-out of the variable remuneration
Group return on equity (RoE); Individual basic
amount (staggered depending on area of
responsi bility and professional experience) per
0.1 percentage point by which the average return
on equity (RoE) of the last three financial years
(FY) exceeds the risk-free interest rate (for the
first time in 2013; for 2011 only RoE for FY 2011
as assessment period, for 2012: average RoE for
FY 2011 and 2012)
100% = 12.8% RoE
Cap max: 200%
Cap min: –100% (malus);
Calculation of the bonus will be amended if the
risk-free interest rate changes by one percentage
point or more;
Calculation of RoE: Group profit for the year
calculated according to IFRS (without non-controlling
interests) ÷ arithmetic mean of the Group
equity to IFRS (without non-controlling interests)
at the start and end of the financial year.
Evaluation of the intrinsic value creation (IVC) of
the business areas within the individual’s area of
responsibility
Main criteria for IVC: relative change versus
previous year, absolute amount, comparison
with targets, distribution or profit transfer ratio,
general market environment
100% = amount x = targets fully achieved
Cap max: 200%
Cap min: EUR 0
First used for 2013, until then refinement of the
IVC concept and resolution by the Supervisory
Board at its prudent discretion.
Individual qualitative and quantitative targets;
personal contribution to overall result, leadership
skills, innovation, entrepreneurial skills, specific
remit factors
100% = amount x = targets fully achieved
Cap max: 200%
Cap min: EUR 0
Short term Medium term Long term
60% of the variable remuneration with the
next monthly salary payment
following the resolution by the Supervisory Board
20% of the variable remuneration
allocated to the bonus bank
withheld for three years
Pay-out of the positive amount allocated three
years prior to the pay-out, provided that this does
not exceed the balance in the bonus bank after
all credits/debits up to and including those for
the most recent financial year
Any amounts due for disbursement that are not
covered by the balance in the bonus bank are
forfeited
Claims on the bonus bank forfeited in special
cases: termination of office without material
grounds; extension of contract at same terms
rejected
No interest payable on positive balance
Agreement in contract
Achievement of three-year targets
Assets and
financial position
Achievement of targets for the year
until 2013: Supervisory Board determines the
degree of target achievement at its prudent
discretion
from 2013: achievement of the IVC
Achievement of targets for the year
Supervisory Board determines the degree of
target achievement at its prudent discretion
Automatic allocation of virtual Talanx share
awards to a value equivalent to 20% of the
variable remuneration
On expiry of the four-year retention period: payout
of the current value at the time of pay-out
Valuation of shares for allocation/pay-out:
unweighted arithmetic mean of the Xetra closing
prices over a period of five trading days before to
five trading after the meeting of the Supervisory
Board that approves the consolidated financial
statements
Pay-out of the total amount of all dividends
accumulated during the retention period
Changes in the value of the share awards by
on aggregate 10% or more due to structural
measures triggers adjustment
Negative total of variable bonuses = pay-out of EUR 0 of variable remuneration.
A negative value of the total variable bonuses in any financial year is transfered in full to the bonus bank (see “Medium term” column).