Sustainability Report 2015
Remuneration and performance review
The correlation between the performance of Hannover Re and the remuneration of the governance bodies is assured by a remuneration scheme with two components: fixed salary / non-cash compensation and variable remuneration. The bases for measurement of the variable remuneration extend over several years, thereby promoting the sustainable development of the company.
The profit- and performance-based remuneration (variable remuneration) is contingent on certain defined results and the attainment of certain set targets. The set targets vary according to the function of the Board member in question.
The remuneration scheme for the members of the Executive Board was presented at the General Meeting 2012 and put to the vote. The shareholders were thus given an opportunity in this forum to express their opinion on the remuneration scheme. The motion to approve the system of remuneration for the members of the Executive Board was adopted. Hannover Re draws upon the services of an external independent consultant both with respect to the elaboration of the remuneration scheme for the members of the Executive Board and when it comes to making the annual horizontal comparison with the benchmark environment.
In accordance with Item 5.6 of the German Corporate Governance Code a procedure is also carried out at regular intervals to evaluate the efficiency of the Supervisory Board; the purpose is to review the efficiency of the Supervisory Board's work and explore potential options for improvement. In the context of this self-assessment each member of the Supervisory Board has the opportunity to evaluate the quality of the work currently performed by the Supervisory Board in anonymised form and to make suggestions for future optimisation.
Detailed information on the remuneration of the Executive Board, Supervisory Board and senior executives below the level of the Executive Board is published in the remuneration report within the Group Annual Report 2015.