Three questions to Michael Diekmann on CEO compensation
Why did the Supervisory Board decide to increase Oliver Bäte’s salary?
The Supervisory Board is very satisfied with Mr. Bäte's performance. This is based on his target achievements in recent years and it is also reflected in his early contract renewal in 2018. Our assessment is based on the favorable financial results as well as the steadily improving satisfaction of customers and employees.
What role does peer comparison play for an appropriate CEO compensation?
The Supervisory Board has the legal mandate to regularly assess whether the target compensation of the Board of Management is appropriate and in line with the market. For the second year in a row, we found that Mr. Bäte's target compensation was well below what would be commensurate to the Allianz DAX position. Last year, we decided to wait for further developments before making an adjustment. Mr. Bäte's performance in the context of the crisis has also been very strong, and the gap in this year's salary benchmarking has remained unchanged. The Supervisory Board therefore decided unanimously, with the votes of both the shareholder and employee representatives, to raise his target salary to an appropriate level.
What does the increase mean for the fixed and the variable salary components?
Raising the target salary leads to a corresponding increase in fixed and variable compensation. The larger part can be earned under the variable compensation through adequate performance, and will not be earned in the case of weaker performance.
The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 737 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.7 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
** As of December 31, 2023.
** As of December 31, 2023.
Cautionary note regarding forward-looking statements
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements: