Disclosure of information on Managing Board and Supervisory Board compensation
The Company compensation guidelines are based on the provisions of Solvency II and entered into effect on 1 January 2016. The guidelines include standards that are generally intended to prevent the compensation rules from creating incentives to assume excessive risk and to avoid conflicts of interest as far as possible. The Company guidelines include further provisions for key positions – in particular the variable compensation for these positions – that are generally aimed at promoting sustainability and careful handling of risks. The Company guidelines apply to insurance companies and reinsurance companies in the Group and therefore apply to all material subsidiaries included in the scope of consolidation.
Compensation plan for Members of the Managing Board of the Company
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 and achieving it fully depends critically on an analysis of the sustainable performance of the Company that extends 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 tradetional targets in financial year 2016 is between 60% and 65% of fixed compensation.
Large parts of the performance-related compensation are only paid after a delay. The delay for financial year 2016 extends to 2020. The deferred portions are awarded based on the sustainable performance of the Group, and non-financial factors are included in the evaluation of target achievement. For example, the performance-related compensation for 2016 is awarded based on promotion of those aspects of corporate governance that lead to the expression of social responsibility in practice.
Bonus compensation can also be earned for appropriate target achievement. In total, the members of the Managing Board can earn variable compensation equal to a maximum of between 81% and 93% of their fixed compensation in this way. The Managing Board is not entitled to the performance-related component of compensation if performance fails to meet certain thresholds.
Even if the targets are fully met in a financial year, because of the focus on sustainability, the full variable compensation is only awarded if the Company also achieves positive performance in the three following years.
In 2016, the key performance criteria for variable compensation are the combined ratio, premium growth and the result before taxes. The key performance criteria for bonus compensation are country-specific targets.
Managing Board compensation does not include stock options or similar instruments.
In 2016, the active members of the Managing Board received the following from the Company for their services during the reporting period:
- Elisabeth Stadler EUR 706,000, including EUR 0 variable,
- Franz Fuchs EUR 738,000 (EUR 737,000), including EUR 226,000 (EUR 231,000) variable,
- Roland Gröll EUR 511,000, including EUR 0 variable,
- Judit Havasi EUR 511,000, including EUR 0 variable,
- Peter Höfinger EUR 738,000 (EUR 790,000), including EUR 226,000 (EUR 284,000) variable,
- Martin Simhandl EUR 738,000 (EUR 790,000), including EUR 226,000 (EUR 284,000) variable.
The members of the Managing Board received the following compensation from affiliated companies for their services provided to the Company, or as a legal representative or an employee of an affiliated company:
- Elisabeth Stadler EUR 94,000, including EUR 94,000 variable,
- Judit Havasi EUR 173,000, including EUR 173,000 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 base if the member remains on the Managing Board until the age of 65 (the measurement base is equal to the standard fixed compensation).
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 between two and 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, 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 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 2016 amounted to EUR 428,920.
The members of the Supervisory Board received the following amounts:
- Günter Geyer EUR 73,000
- Karl Skyba EUR 44,000
- Maria Kubitschek EUR 38,000
- Bernhard Backovsky EUR 33,000
- Martina Dobringer EUR 39,000
- Rudolf Ertl EUR 43,000
- Heinz Öhler EUR 34,000
- Reinhard Ortner † EUR 43,000
- Georg Riedl EUR 37,000
- Gertrude Tumpel-Gugerell EUR 43,000.
Supervisory Board compensation does not include stock options or similar instruments.