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Allianz Annual Report 2012

Annual Report 2012    Allianz Group Equity-related remuneration is granted after the end of the financial year with the Annual bonus performance of plan participants determining the value of the equity grant. The number of RSU granted results from dividing this value by the calculated market value of an RSU at the time of grant. Following the end of the four-year vesting period, the com- pany makes a payment based on the market price of ­the Allianz share at that time. In this way the ultimate value is driven by our share performance, thereby providing an alignment with shareholder interests. To avoid extreme payouts, the RSU payout is capped at 200 % above grant price. Outstanding holdings are forfeited in accordance with the plan rules should executives leave at their own request or would be terminated for cause. Annual performance drives the value of the Annual bonus and also influences the mid- and long-term components. However, the values delivered under the three-year and ­equity components ultimately depend on sustained perfor- mance over longer periods. Illustration of the process and the underlying timeline of the Three-year bonus cycle, from target setting to final performance assessment1 B 008 € thou 20102 20112 20122 20133 Dec 2009 Target setting Performance period Performance assesment & payout Accrual 930 Target setting for the three-year performance period Initial assessment/ accrual x Sustainability assessment = Final payout Payout range – based on cumulative target values Total 2,100 Accrual 620 Accrual 550 Accrual 930 Accrual 620 Accrual 550 Notional accruals 0 % 165 % Min: 0 Max: 3,465 Target: 2,100  Year 1   Year 2   Year 3 1 Example based on target values of a regular member of the Board of Management with an annual target of € 700  Thou for the Three-year bonus. 2 Actual accrual for the Three-year bonus (mid-term) usually equals the Annual bonus pay out of the respective financial year. Since the performance assessment and the final payout occur after completion of the performance cycle this value is only a notional indication. 3 Final payout is subject to the sustainability assessment of the Supervisory Board and may vary within the full range between 0 % – 165 % of the cumulative target values independent of the notional accruals. PAYOUT OF VARIABLE REMUNERATION B 009 Equity-related remuneration for 2012 Three-year bonus 2010 – 2012 Annual bonus 2012 2012 2013 2014 2015 2016 2017 78