The base salary is not performance based. It is paid in twelve monthly installments.
The variable remuneration (annual bonus, mid-term bonus, and equity-related compensation) is designed to reward performance. A shortfall of targets may result in the variable compensation dropping to zero. Two thirds of the variable compensation are a deferred payout after three or four years, respectively.
Claw-back clauses for compensation components already paid do not exist because according to the governing German labor law, the enforceability of claw-back clauses is subject to major legal restrictions.
All variable awards are made under the rules and conditions of the “Allianz Sustained Performance Plan” (ASPP) which consists of the equally weighted components below. The grant of variable remuneration components is related to performance and can vary between 0% and 150% of the respective target values. If performance was rated at 0% no variable component would be granted.
Consequently, the minimum total direct compensation for a regular member of the Board of Management equals the base salary of 750,000 euros (excluding perquisites and pension contributions). The maximum total direct compensation (excluding perquisites and pension contributions) is 4.125 million euros: base salary 750,000 euros plus 3.375 million euros (150% of the sum of all three variable compensation components at target).
The CEO’s maximum total direct compensation (excluding perquisites and pension contributions) is 6.188 million euros: base salary 1.125 million euros plus 5.063 million euros (150% of the sum of all three variable compensation components at target).