Managing Board

The Managing Board had the following members in financial year 2014:

Chairman:

Peter Hagen

Members:

Franz Fuchs
Peter Höfinger
Martin Simhandl

Compensation plan for members of the Managing Board

The Managing Board of the Company manages Vienna Insurance Group. In some cases, responsibility is also assumed for additional duties in subsidiaries or related companies.

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. Achieving sustainability 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.

The Managing Board consisted of four members in 2014.

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.

The members of the Managing Board received EUR 2,432,000 (EUR 3,611,000) in remuneration for their services to the Company during the reporting period. The members of the Managing Board received EUR 392,000 (EUR 1,183,000) from subsidiaries during the reporting period.

Former members of the Managing Board received EUR 561,000 (EUR 1,658,000) from the Company and EUR 110,000 from subsidiaries.