The remuneration concept is designed to ensure that conflicts of interest and damaging incentives with negative effects for the company or funds are prevented. It is consistent with the goals of the managed funds and the company's risk strategy, with sustainability risks being considered. It incentivises adherence to and the furtherance of ESG compliance. The remuneration concept aims to encourage and motivate the employees’ performance. It applies to all employees equally and meets the regulatory requirements.

Calculation of staff remuneration

In addition to a position-based monthly salary, the remuneration system also contains a variable remuneration component. Additionally other benefits such as a company pension and contributions to capital formation are offered.

For non-tariff employees and senior executives, an individual target bonus is defined in advance, the amount of which is based on a percentage of the total remuneration. The variable target share depends on the function. For senior executives the target bonus comprises an annual bonus and a four-year bonus.

The actual payout of the annual bonus for employees and senior executives in market- and sales-oriented functions depends on the individual and corporate target achievement - also taking into account sustainability risks. For employees and senior executives in non-market and sales-oriented functions, the actual payout amount is calculated exclusively on the basis of the achievement of the company's objectives. There are no contractually guaranteed bonuses or severance packages. For senior executives the degree to which the company group achieves its goals also affects the amount of the long-term bonus.

Remuneration system of the identified employees pursuant to §37 KAGB

Under the German Code of Investment Law (KAGB), certain people are categorised as identified employees. Their remuneration comprises a fixed and a variable component. Other benefits, for instance a company car, can also be offered. These other benefits are of far lower value than the fixed and variable remuneration components.

The variable remuneration contains a short-term annual bonus and a medium-term multi-year bonus. In order to make sure all decisions and successes are taken into account, one part of the variable remuneration is based on an assessment period of several years, and is paid out after that period. The decisive factors for how much bonus is paid are the personal achievement of objectives and how well the company and company group achieve their objectives. One bonus component is linked to the value of the Munich Re share as well as ESG-targets. No guaranteed bonus is provided.

Remuneration committee

MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH has a remuneration committee comprising the CEO of MEAG MUNICH ERGO AssetManagement GmbH, and that company's head of HR and the Chief Compliance Officer. It reviews the remuneration system annually.