Fundamentals of the staff remuneration system
The remuneration concept should prevent conflicts of interest and incentives that could damage the company or negatively affect the assets under management. It should be in line with the company's risk strategy and the goals of the funds managed. The remuneration concept should improve the staff's performance and motivation. It should be free of discrimination for all employees and meet the regulatory requirements.
Calculating staff remuneration and responsibilities
Alongside a basic monthly salary commensurate with the position held, the remuneration system should also have a variable component. And in addition, other benefits like company pensions and capital-formation benefits can also be granted.
Employees who are paid outside the company tariff structure have an individual annual performance bonus. How much that bonus can be depends mainly on the position held and how challenging the goals are.
In the case of managerial staff, the target bonus is divided up into an annual performance bonus and a three-year performance bonus.
How much of the target bonus is actually paid out depends on the extent to which the individual, the company and the company group achieve their goals. We do not provide contractually guaranteed bonuses or severance payments.
The remuneration system for risk takers
The German Code of Investment Law defines certain people as "risk takers". Their remuneration comprises a fixed and a variable component, and they can also be granted certain other benefits such as a company car. These other benefits are, however, to be kept well below the value of the fixed and variable salary components.
The variable remuneration contains a short-term component (annual performance bonus) and a medium-term component (multiple-year performance bonus). Part of the performance-based remuneration is based on an assessment period of several years, in order to cater for long-term decisions and successes. This bonus is paid after a period of delay. In addition to the person's individual performance, the extent to which the employing company and the company group as a whole achieve their goals is also of decisive importance when determining how high the bonuses should be. One bonus component, for example, is dependent on the Munich Re share price. Guaranteed bonuses are not provided for.
The Remuneration Committee
MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH has a Remuneration Committee that reviews the remuneration system on an annual basis.