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Allianz Annual Report 2012

Annual Report 2012    Allianz Group Outlook for 2013 As part of ongoing regular reviews of compensation prac- tices, the ­Allianz Board of Management approved a revised global Reward and Performance framework for 2013. This outlines the common minimum standards to be applied across Group companies while still ensuring flexibility to reflect ­Allianz’s diverse business and includes the intro- duction of a new grading system and methodology to further enhanceconsistencyandcomparabilityofseniorexecutive roles across Group companies. This new system will support the Group’s ability to consistently benchmark compensa- tion levels and structures as well as to facilitate internal mobility and talent management. Another key develop- ment is the introduction of an adapted, more consistent performance management standard for senior executives across the Group which reflects market best practice in target setting and performance assessment and further sup- ports the Group’s culture of performance and meritocracy. Remuneration of the Supervisory Board The remuneration of the Supervisory Board is governed by the Statutes of ­Allianz SE and the German Stock Corporation Act. The structure of the Supervisory Board’s remuneration is regularly reviewed with respect to German, European and international corporate governance recommenda- tions and regulations. REMUNERATION PRINCIPLES −− Set total remuneration at a level aligned with the scale and scope of the Supervisory Board duties and appro­ priate to the Company’s activities, business and financial situation. −− Set a remuneration structure that takes into account the individual functions and responsibilities of Supervisory Board members, such as chair, vice-chair or committee mandates. Key features of senior executives1 2012 target remuneration B 015 Split between fixed and variable remuneration in % Allocation per remuneration component in % Variable 60 Fixed 40 Equity-related remuneration (long-term) 21 Three-year bonus (mid-term) 18 Annual bonus (short-term) 21 Base salary 40 Split between short-term and mid-/long-term variable remuneration Split between cash incentives and Equity-related variable remuneration Mid- & long-term 63 Short-term 37 Equity-related remuneration 37 Cash incentives 63 1 Figures excluding pensions and perquisites; including Members of the Board of Management of ­Allianz SE. Percentages calculated by using the median. B Corporate Governance 63 Corporate Governance Report 69 Statement on Corporate Management pursuant to § 289a of the HGB 71 Takeover-related Statements and Explanations 74 Remuneration Report 87