Disclosure of information on Managing Board and Supervisory Board compensation

Compensation plan for members of the Managing Board

Managing Board compensation takes into account the importance of the Group and the responsibility that goes with it, the economic situation of the Company, and the market environment.

The variable portion of the compensation emphasises the need for sustainability in a number of ways. Its Achievement depends to a large extent on satisfying performance criteria that extend beyond a single financial year.

The performance-related compensation is limited. The maximum performance-related compensation that the Managing Board can receive by overachieving all of its targets in financial year 2014 is approximately the same as its fixed salary. The awarding of such compensation requires that consideration be given to the sustainable development of the Company and the Group; non-financial factors, including, for example, those resulting from the Company's commitment to social responsibility, are also taken into account when target achievement is assessed. The Managing Board is not entitled to the performance-related component of compensation if performance fails to meet certain thresholds. Even if the performance target is met in a financial year, because of the focus on sustainability, the full variable compensation is only awarded if satisfactory performance is also reported in the following year.

In 2014, the key performance criteria for variable compensation are the combined ratio, premium growth, the profit before taxes for the years 2014 and 2015, and a country-specific target for 2014 and 2015.

Managing Board compensation does not include stock options or similar instruments.

When setting the gross compensation of the Managing Board members, a certain amount of attention was also paid to equalising net effects, so that if compensation was paid for operational positions in affiliated companies outside of Austria, where the tax regime was more favourable than that in Austria, a lower gross compensation was set to take account of this fact. This and the different responsibilities of the members of the Managing Board explain the differences in their gross compensation.

In detail, the active members of the Managing Board in 2014 received the following from the Company for their service during the reporting period:

  • Peter Hagen EUR 884,000 (EUR 1,170,000), including EUR 89,000 (EUR 464,000) variable,
  • Franz Fuchs EUR 431,000 (EUR 368,000), including EUR 11,000 (EUR 149,000) variable,
  • Martin Simhandl EUR 559,000 (EUR 819,000), including EUR 62,000 (EUR 333,000) variable,
  • Peter Höfinger EUR 559,000 (EUR 819,000), including EUR 62,000 (EUR 333,000) variable.

The members of the Managing Board received the following compensation from affiliated companies for their services to the Company, or as a manager or employee of an affiliated company:

  • Franz Fuchs EUR 75,000 (EUR 321,000), including EUR 11,000 (EUR 129,000) variable.

The standard employment contract for a member of the Managing Board of the Company includes a pension equal to a maximum of 40% of the measurement basis if the member remains on the Managing Board until the age of 65 (the measurement basis is equal to the standard fixed salary).

A pension is normally received only if a Managing Board member’s position is not extended and the member is not at fault for the lack of extension, or the Managing Board member retires due to illness or age.

In cases where the provisions of the Austrian Employee and Self-Employment Provisions Act (Mitarbeiter- und Selbstständigen-Vorsorgegesetz) are not applicable by law, the Company's Managing Board contracts provide for a severance payment entitlement structured in accordance with the provisions of the Austrian Employee Act (Angestelltengesetz), as amended in 2003, in combination with applicable sector-specific provisions. This allows Managing Board members to receive a severance payment equal to two to twelve months’ compensation, depending on the period of service, with a supplement of 50% if the member retires or leaves after a long-term illness. A Managing Board member who leaves of his or her own volition before retirement is possible, or leaves due to a fault of his or her own, is not entitled to a severance payment.

Members of the Managing Board are provided a company car for both business and personal use.

Compensation plan for the members of the Supervisory Board

In accordance with resolutions adopted by the 21st ordinary general meeting on 4 May 2012, the members of the Supervisory Board elected by the general meeting are entitled to receive compensation in the form of a payment remitted monthly in advance. Members of the Supervisory Board who withdraw from their positions before the end of a month still receive full compensation for the month in question. In addition to this compensation, Supervisory Board members are entitled to receive an attendance allowance for participating in Supervisory Board meetings and Supervisory Board committee meetings (remitted after participation in the meeting). The total compensation paid to members of the Supervisory Board in 2014 was EUR 419,100.

In detail, the members of the Supervisory Board received the following:

  • Günter Geyer EUR 39,000 (since 6 June 2014)
  • Wolfgang Ruttenstorfer EUR 36,000 (until 6 June 2014)
  • Karl Skyba EUR 48,600
  • Bernhard Backovsky EUR 31,500
  • Martina Dobringer EUR 34,500
  • Rudolf Ertl EUR 21,750 (since 6 June 2014)
  • Alois Hochegger EUR 16,500 (until 6 June 2014)
  • Maria Kubitschek EUR 20,250 (since 6 June 2014)
  • Heinz Öhler EUR 34,500
  • Reinhard Ortner EUR 40,500
  • Georg Riedl EUR 20,250 (since 6 June 2014)
  • Martin Roman EUR 17,250 (until 6 June 2014)
  • Friedrich Stara EUR 21,000 (until 6 June 2014)
  • Gertrude Tumpel-Gugerell EUR 37,500.

Supervisory Board compensation does not include stock options or similar instruments.