Allianz operates an effective system of Compensation Committees of major global entities and global lines of business. They periodically review and decide on remuneration guidelines and practices below the Board of Management. Based on the specific nature, scale and scope of each business the Board of Management has defined the appropriate level of Compensation Committee oversight.
The Group Compensation Committee (GCC) oversees the design, governance and operation of the group-wide compensation system, plans and their further development. The GCC monitors the AZ Group’s compensation system’s compliance with the relevant regulatory law. It ensures the appropriateness of Allianz Global and Senior Executive’s compensation system and monitors the implementation of its decisions. It has the direct responsibility for package of the Allianz Global Executives and risk takers compensation packages.
The membership of the GCC is approved by the Allianz SE Board of Management and reflects the nature of the principal Allianz businesses and the breadth and depth of expertise required for Group oversight to comply with the applicable regulation. Cross-representation on different committees (i.e. Compensation, Risk, Finance and Capital Committees) supports effective information flow.
The responsibilities of Compensation Committees below the GCC level are similar regarding compensation systems and oversight of their respective/relevant executives. Local Compensation Committees are typically comprised of regional Chief Executive Officers, Business Division Heads, Chief Financial Officers or Chief Operating Officers, a representative of the legal and/or compliance function and the Head of Human Resources.