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 the 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 the traditional targets in financial year 2015 is approximately 86% of 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, in particular those resulting from the Company’s commitment to social responsibility, are also taken into account when target achievement is assessed. These bonuses can be earned when the corresponding objectives are achieved. Overall, this means that variable remuneration components are possible up to a level of approximately 125% of the fixed remuneration. 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 2015, the key performance criteria for variable compensation are the combined ratio, premium development, profit before taxes for the years 2015 and 2016, and for the special payments for country-specific goals on the one hand, and IT-related goals on the other hand – in each case relating to the 2015–2016 period.

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

When setting the gross compensation for 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 this fact into account. This and the different responsibilities of the members of the Managing Board explain the differences in their gross compensation.

In 2015, more active members of the Managing Board received the following amounts from the Company for their services during the reporting period:

  • Peter Hagen EUR 1,143,000 (EUR 884,000), including EUR 409,000 (EUR 89,000) variable,
  • Franz Fuchs EUR 737,000 (EUR 431,000), including EUR 231,000 (EUR 11,000) variable,
  • Martin Simhandl EUR 790,000 (EUR 559,000), including EUR 284,000 (EUR 62,000) variable,
  • Peter Höfinger EUR 790,000 (EUR 559,000), including EUR 284,000 (EUR 62,000) variable.

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

  • Franz Fuchs EUR 42,000 (EUR 75,000), including EUR 42,000 (EUR 11,000) 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 if the Managing Board member retires due to illness or age.

For cases when the provisions of the Austrian Employee and Self-Employment Provisions Act (Mitarbeiter- und Selbstständigen-Vorsorgegesetz) are not legally applicable, 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 the resolutions adopted by the 21st regular 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 2015 amounted to EUR 414,350.

The members of the Supervisory Board received the following amounts:

  • Günter Geyer EUR 76,610
  • Karl Skyba EUR 49,580
  • Bernhard Backovsky EUR 33,770
  • Martina Dobringer EUR 33,770
  • Rudolf Ertl EUR 39,770
  • Maria Kubitschek EUR 33,770
  • Heinz Öhler EUR 33,770
  • Reinhard Ortner EUR 39,770
  • Georg Riedl EUR 33,770
  • Gertrude Tumpel-Gugerell EUR 39,770

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