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Allianz Annual Report 2013

B Corporate Governance 27 Corporate Governance Report 32 Statement on Corporate Management pursuant to § 289a of the HGB 34 Takeover-related Statements and Explanations 37 Remuneration Report Annual Report 2013    Allianz Group 39 −− Equity-related remuneration (long-term): A virtual share award, known as “Restricted Stock Units” (RSUs). RSUs are granted after the end of the financial year with the annual bonus performance determining the value of the equity grant. The 165 % cap of the annual bonus also applies to the RSU grant value, which must not exceed € 1,155 Thou for a regular member of the Board of Management with a € 700  Thou target. The number of RSUs granted results from dividing the grant value by the value of an RSU at the time of grant. Following the end of the four-year vest­ ing period, the company makes a cash payment based on the number of RSUs granted and the market price of the ­Allianz share at that time. To avoid extreme payouts, the RSU payout is capped at 200 % above grant price.1 In accordance with the RSU rules, outstanding holdings are for­ feited should a Board member leave at their own request or be terminated for cause. Variable remuneration components may not be paid, or payment may be restricted in the case of a breach of the ­Allianz Code of Conduct, risk limits or compliance requirements. Additionally, a reduction or abandonment of variable remuneration may occur if the supervisory authority (BaFin) requires this in accordance with its statutory powers. Pensions and similar benefits To provide competitive and cost-effective retirement and disability benefits, since 1 January 2005 Board of Management members par­ ticipate in a contribution-based system. Prior to this date, Board members participated in a defined benefit plan that provided fixed benefits not linked to base salary increases. Benefits generated under this plan were frozen at the end of 2004. Additionally, most Board members participate in the ­Allianz Versorgungskasse VVaG (AVK), a contribution-based pension plan and the ­Allianz Pensionsverein e.V. (APV), which provide pension benefits for salaries up to the German social security ceiling. Company contributions to the current pension plan depend on the years of service on the Board of Management. They are invested in a fund with a guaranteed minimum interest rate per year. On retirement, the accumulated capital is converted into a lifetime annuity. Each year the Supervisory Board decides whether, and to what extent, a budget is provided, also considering the targeted pen­ sion level. This budget includes a risk premium paid to cover death and disability. The earliest age a pension can be drawn is 60, except for cases of occupational or general disability for medical reasons. In these cases it may become payable earlier on; an increase by projec­ tion may apply. In the case of death, a pension may be paid to depen­ dents.Survivingdependentsnormallyreceive60 %(survivingpartner) 1 The relevant share price used to determine the final number of RSUs granted and the 200 % cap are only available after sign-off by the external auditors. and 20 % (per child) of the original Board member’s pension, with the aggregate not to exceed 100 %. Should Board membership cease prior to retirement age for other reasons, the accrued pension rights are maintained if vesting requirements are met. Perquisites Perquisites mainly consist of contributions to accident and liability insurances and the provision of a company car. Where applicable, expenses are paid for the maintenance of two households. Perqui­ sites are not linked to performance. Each member of the Board of Management is responsible for the income tax on these perquisites. The Supervisory Board reviews regularly the level of perquisites.

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