talanx group annual report 2011 en

Overall assessment of
the economic situation
Non-financial
performance indicators
Corporate Governance Remuneration report Events of special
significance
Cash remuneration actually accruing to active members of the Board of Management in the year under review
Risk report Forecast and
opportunities report
Name Non-performance-based remuneration Performance-based remuneration 1) Total
In EUR thousand
Herbert K. Haas 714 1,263 1,977
Dr. Christian Hinsch 504 647 1,151
Torsten Leue 660 178 838
Dr. Thomas Noth 500 275 775
Dr. Immo Querner 544 623 1,167
Dr. Heinz-Peter Roß 725 564 1,289
Ulrich Wallin 2) 520 684 1,204
Total 2011 4,167 4,234 8,401
Total 2010 2,982 4,866 7,583
1) Performance-based remuneration paid out in the year under review for the 2010 financial year
2) Including the stock appreciation rights of Hannover Re exercised in the year under review in an amount of EUR 139 (22) thousand;
recognised under performance-based remuneration
Retirement provisions
The contracts between the members of the Board of Management
and Talanx AG – with one exception granting an annual pension
fund contribution based on the member’s fixed remuneration – provide
for an annual retirement pension calculated as a percentage
of the fixed annual remuneration (“defined benefit”). The amount
of the agreed maximum pension varies according to the particular
contract and is between 35% and 65% of the Board member’s
monthly fixed salary at the time of scheduled retirement at or after
the age of 65. In connection with the new remuneration structure as
of the 2011 financial year, a non-pensionable component of the fixed
remuneration was introduced.
In one instance a contract provides for a pension on a defined-contribution
basis. In this case the company pays an annual contribution
amounting to 20% of the Board member’s pensionable income
(fixed annual remuneration as at 1 July of each year) into a pension
fund.
In both types of contract (“defined benefit” and “defined contribution”),
income from other sources during the pension payment period
may under certain circumstances (e.g. in the event of incapacity
or termination of the contract before age 65) be counted towards
the pension in full or in part.
Survivor pensions
If a member of the Board of Management dies during the term of
his or her contract, the surviving spouse, in the absence thereof the
eligible children, are entitled to continued payment of the monthly
fixed salary for the month in which the Board member dies and the
following six months, but not longer than until the expiry date of
the contract. If a member of the Board of Management dies after
the onset of pension payments, the pension for the month in which
the Board member dies and the following six months will be paid to
the surviving spouse and in the absence thereof to the dependant
children.
The widow’s pension is 60% of the retirement pension the deceased
member of the Board of Management was drawing or would have
drawn if he or she had become incapacitated before the time of
death. If the widow re-marries, the widow’s pension is forfeited. If
that marriage is dissolved by death or divorce, the pension entitlement
is revived, but all pensions, annuities and other insurance
benefits accruing by virtue of the new marriage will be counted
against the widow’s pension.
An orphan’s pension will be granted in the amount of 15%, or if the
widow’s pension is forfeited 25%, of the retirement pension the
deceased member of the Board of Management was drawing at the
time of death or would have drawn if he or she had retired early
due to permanent incapacity. The orphan’s pension is paid for not
longer than until the child turns 25 or 27 years of age. Any income
earned from employment or an apprenticeship will be counted in
part against the orphan’s pension.
Adjustments
Retirement, widow’s and orphan’s pensions are linked to the consumer
price index for Germany (overall index).
Amount of pensions paid
The pension commitments for the active members of the Board of
Management totalled EUR 1,509 (1,558) thousand. The expenditure
in respect of pensions (service cost) for the active members of the
Board of Management amounted to EUR 1,060 (796) thousand. The
details on the amount of the retirement provisions for the Board of
Management of Talanx AG are disclosed for the individual members
by name for the first time in the year under review.
The total payments made to former members of the Board of
Management and their surviving dependants, for which there were
six commitments in force in the year under review, amounted to
EUR 1,493 (790) thousand. The provisions set up in respect of pension
obligations towards this group of persons totalled EUR 10,736
(11.747) thousand.
Talanx Group. Annual Report 2011
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