The correlation between the performance of our company and the remuneration of our Executive Board is assured by a remuneration scheme with two components: fixed salary / non-cash compensation and variable remuneration. The bases for measurement of the variable remuneration extend over several years, thereby promoting the sustainable development of our company.

The profit- and performance-based remuneration (variable remuneration) is contingent in part on the attainment of individual targets. On the other hand, allowance is also made for targets that refer to key performance indicators of the company (e.g. return on equity). The set targets vary according to the function of the Board member in question. Environmental and social goals are not currently reflected in the performance criteria under the remuneration policy.

The remuneration scheme for the members of the Executive Board was presented at the Annual General Meeting 2012 and put to the vote. The shareholders were thus able in this forum to express their opinion on the remuneration scheme. The motion to approve the system of remuneration for the members of the Executive Board was adopted. We draw upon the services of an external independent consultant not only for the elaboration of the remuneration scheme for the members of the Executive Board; outside independent advice is also sought when it comes to making the annual horizontal comparison with the benchmark environment, which is mapped on the basis of typical or average figures from comparable companies.

In accordance with Item 5.6 of the German Corporate Governance Code we evaluate the efficiency of the Supervisory Board at regular intervals in order to explore potential options for improvement in its work. In the context of this self-assessment each member of the Supervisory Board evaluates the quality of the work currently performed by the Supervisory Board in anonymised form and makes suggestions for future optimisation.

The remuneration of the Supervisory Board is determined by the Annual General Meeting of Hannover Rück SE and regulated by the Articles of Association.

In accordance with §14 of the Articles of Association as amended on 30 May 2016 and the resolution of the Annual General Meeting on 7 May 2013, the members of the Supervisory Board receive fixed annual remuneration of EUR 30,000 per member in addition to reimbursement of their expenses. Furthermore, each member of the Supervisory Board receives variable remuneration measured according to the average earnings per share (EPS) of the company over the past three financial years preceding the Annual General Meeting at which the actions of the Supervisory Board for the last of these three years are ratified.

Detailed information on the remuneration of the Executive Board, Supervisory Board and senior executives below the level of the Executive Board is published in the remuneration report within the Group Annual Report 2017.