Compensation plan for members of the Managing Board
Taking into account the steady evolution of the Company and the Group, the performance-linked component is measured according to the profit earned by the Group as well as by key Group companies, the amount of this component being subject to a maximum limit. The Managing Board receives no performance-linked compensation if profit falls below certain thresholds. Starting in the autumn, the 2008 financial year was dominated by dramatic events on financial markets. Notwithstanding the well-known difficulty presented by this environment, the Group still managed to earn its best profit ever. In view of the current economic environment, which continues to present great challenges to many customers of the Group as well, the Managing Board has decided to waive the 2008 performance-linked income component it is contractually guaranteed upon achievement of its targets, such that this income component will not be paid out. The standard employment agreement of a Wiener Städtische Versicherung AG Vienna Insurance Group Managing Board member includes a maximum pension plan obligation of 40% of the measurement basis if the member remains on the Managing Board until the age of 65 (the measurement basis being equal to the fixed salary component). The rules for Managing Board members with many years of prior service differ in that the percentage of the measurement basis is higher for historical reasons (up to 55%), with supplements awarded for remaining on the Managing Board at the Supervisory Board’s request after the age limit has been reached). A pension is received only if a Managing Board member’s position is not extended through no fault of his or her own, or the Managing Board member retires due to illness or age. The Managing Board agreements of Wiener Städtische Versicherung AG Vienna Insurance Group provide for a post-employment benefit that is formulated in accordance with the provisions of the Austrian Employee Act (Angestelltengesetz), as amended in 2003, in combination with relevant sector-specific rules. Depending on the period of service, these allow Managing Board members to receive a post-employment benefit of two to twelve months’ compensation, with a supplement of 50% if the member retires or withdraws after a long-term illness. A member who withdraws from the Managing Board of his or her own volition before being able to retire, or who withdraws due to a fault of his or her own, is not entitled to a post-employment benefit.
Compensation plan for members of the Supervisory Board
In accordance with resolutions adopted by the 16th ordinary Annual General Meeting of 25 May 2007, the members of the Supervisory Board elected by the Annual General Meeting are entitled to receive compensation in the form of a payment remitted monthly in advance. Members of the Supervisory Board who withdraw from the Supervisory Board during the course of a month receive full compensation for the month in question.
In addition to this compensation, Supervisory Board members are entitled to receive an attendance fee for their participation in Supervisory Board meetings and Supervisory Board committee meetings (remitted following participation in the meeting).
The total compensation paid to members of the Supervisory Board in 2008 was EUR 353,000 (2007: EUR 226,000).
