Remuneration
Total remuneration of the Board of Management
The basis for reporting the remuneration of Board members is German Accounting Standard No. 17 (DRS 17), according to which the amount shown for the annual bonus is the provision established for that bonus, since the performance on which the bonus is based has been completed by the balance sheet date of the financial year and the requisite Board resolution is already foreseeable. Under the above-mentioned standard, medium- and long-term bonuses of the members of the Board of Management must be recognised in the year of payment in future. The members of Munich Reinsurance Com pany’s Board of Management received remuneration totalling €17.0m (19.5m) for fulfilment of their duties in respect of the parent company and its subsidiaries in the financial year. The previous year’s figures have been adjusted in accordance with DRS 17. The reduction in remuneration is due to changes in the composition of the Board of Management. The total remuneration includes the compensation components that Mr. Phelan received for his functions at Munich Re America.
Remuneration of individual Board members
(in accordance with Section 285 sentence 1 item 9a sentences 5–9 of the German Commercial Code and Section 314 para. 1 item 6a sentences 5–9 of the German Commercial Code)
|
|
Name
|
Financial year
|
Basic remuneration
|
Remuneration in kind and fringe benefits
|
Annual bonus1,2,3
|
Long-term-incentive-plan
|
Value of stock appreciation rights granted
|
Total
|
Number of stock appreciation rights
|
| |
|
€ |
€ |
€ |
€ |
€ |
€
|
|
| Dr. Nikolaus von Bomhard |
2007
2006 |
864,000
864,000 |
51,878
57,393 |
1,588,650
1,606,500 |
|
666,000
666,000 |
3,170,528
3,193,893
|
21,442
30,411 |
| Dr. Ludger Arnoldussen4 |
2007
2006 |
300,000
75,000 |
39,647
7,566 |
479,640
133,.875 |
|
240,000
60,000 |
1,059,287
276,441
|
7,727
2,740 |
| Dr. Thomas Blunck |
2007
2006 |
350,000
300,000 |
28,026
26,818 |
509,110
569,520 |
|
280,000
240,000 |
1,167,136
1,136,338
|
9,015
10,959 |
| Georg Daschner |
2007
2006 |
450,000
400,000 |
33,133
29,780 |
752,220
771,120 |
|
360,000
320,000 |
1,595,353
1,520,900
|
11,590
14,612 |
| Dr. Heiner Hasford5 |
2007
2006 |
116,000
696,000 |
8,357
40,700 |
170,042
1,020,250 |
|
49,000
294,000 |
343,399
2,050,950
|
1,578
13,425 |
| Dr. Torsten Jeworrek |
2007
2006 |
550,000
500,000 |
33,538
29,021 |
1,007,930
961,800 |
|
440,000
400,000 |
2,031,468
1,890,821
|
14,166
18,265 |
| Christian Kluge6 |
2007
2006 |
—
510,000 |
1,634
33,702 |
—
816,480 |
|
—
300,000 |
1,634
1,660,182
|
—
13,699 |
| John Phelan7,8,9,10 |
2007
2006 |
795,214
857,253 |
203,352
127,530 |
1,441,251
845,231 |
850,660
947,603 |
620,121
99,930 |
3,910,598
2,877,547
|
—
4,563 |
| Dr. Peter Röder11 |
2007
2006 |
75,000
— |
4,029
— |
124,425
— |
|
60,000
— |
263,454
—
|
1,932
— |
| Dr. Jörg Schneider |
2007
2006 |
600,000
600,000 |
41,958
35,014 |
1,134,000
1,113,000 |
|
480,000
480,000 |
2,255,958
2,228,014
|
15,454
21,918 |
| Dr. Wolfgang Strassl |
2007
2006 |
350,000
300,000 |
14,508
14,959 |
603,190
561,540 |
|
280,000
240,000 |
1,247,698
1,116,499
|
9,015
10,959 |
| Karl Wittmann12 |
2007
2006 |
—
510,000 |
405
33,131 |
—
723,240 |
|
—
300,000 |
—
1,566,371
|
—
13,699 |
|
Total
|
2007
2006
|
4,450,214
5,612,253
|
460,465
435,614
|
7,810,458
9,122,556
|
850,660
947,603
|
3,475,121
3,399,930
|
17,046,918
19,517,956
|
91,919
155,250
|
1 At the balance sheet date, no Board resolution had yet been passed on the amounts to be paid for 2007. The amount shown for the annual bonus is based on estimates and the relevant provisions established. The actual amounts paid out will be shown in the following year.
2 Owing to the good business performance, provisions have been established for the maximum bonus amounts for the consolidated result.
2 In the fi nancial year 2006, a total of €9,355,829 was reserved for the annual bonus, whereas the actual amount paid out totalled €9,122,556.
2 Member of the Board of Management since 1 October 2006.
2 Retired from the Board of Management on 28 February 2007.
2 Retired from the Board of Management on 31 December 2006; the remuneration in kind shown is for the previous year.
2 Has a rolling long-term incentive plan at Munich Re America. Amounts were paid out for Plan 2004–2006 in 2007 and for Plan 2003–2005 in 2006.
2 Remuneration in kind and fringe benefi ts include travel expenses from Princeton to Munich.
2 Retired from the Board of Management on 31 December 2007 and received a payment equivalent to the grant value in lieu of the stock appreciation rights.
2 Decrease in basic remuneration due to low dollar exchange rate compared with previous year.
2 Member of the Board of Management since 1 October 2007.
2 Retired from the Board of Management on 31 December 2006; the benefi ts in kind shown were for the previous year.
The share-priced-based compensation component is accounted for at fair value at the granting date. Details of the fair value are provided in the notes to the consolidated financial statements as from page 242. Whether the variable components will actually be paid out to the Board members, and if so how high the sums will be, is not yet certain and will depend on the degree to which individual objectives are achieved, and on the exercise conditions of the long-term incentive plans. Munich Re shares have been acquired to cover future obligations arising from the long-term incentive plans so that the expenses resulting from a growth in value of the stock appreciation rights are neutralised by an increase in the value of the share portfolio.
The provisions posted hitherto for the medium-term bonus 2006–2008, payable in 2009, are shown in the following table.
|
Provisions for the medium-term bonus 2006–20081
|
|
Name
|
Financial year 2007
|
Financial year 2006
|
Total
|
|
€
|
| Dr. Nikolaus von Bomhard |
1,020,000
|
1,020,000 |
2,040,000 |
| Dr. Ludger Arnoldussen2 |
360,000
|
90,000 |
450,000 |
| Dr. Thomas Blunck |
420,000
|
360,000 |
780,000 |
| Georg Daschner |
540,000
|
480,000 |
1,020,000 |
| Dr. Heiner Hasford3 |
110,000
|
660,000 |
770,000 |
| Dr. Torsten Jeworrek |
660,000
|
600,000 |
1,260,000 |
| Christian Kluge4 |
—
|
540,000 |
540,000 |
| John Phelan |
210,000
|
210,000 |
420,000 |
| Dr. Peter Röder5 |
90,000
|
— |
90,000 |
| Dr. Jörg Schneider |
720,000
|
720,000 |
1,440,000 |
| Dr. Wolfgang Strassl |
420,000
|
360,000 |
780,000 |
| Karl Wittmann6 |
—
|
540,000 |
540,000 |
|
Total
|
4,550,000
|
5,580,000
|
10,130,000
|
1 Owing to the good business performance in 2006 and 2007, provisions have been established for the maximum bonus amounts for the consolidated result.
2 Member of the Board of Management since 1 October 2006.
3 Retired from the Board of Management on 28 February 2007.
4 Retired from the Board of Management on 31 December 2006.
5 Member of the Board of Management since 1 October 2007.
6 Retired from the Board of Management on 31 December 2006.
Pension entitlements
Personnel expenses of €1.5m (1.2m) were incurred in the financial year for the increase in the pension provisions for active members of the Board of Management. The following pension commitments result for the individual members of the Board of Management:
|
Pension entitlements
|
|
Name
|
|
Pension commitments as as at 1 January
|
Personnel expenses for the provision
|
|
€
|
| Dr. Nikolaus von Bomhard |
2008
2007 |
407,100
380,160 |
346,589
284,237 |
| Dr. Ludger Arnoldussen1 |
2008
2007 |
157,500
231,936 |
150,000
— |
| Dr. Thomas Blunck |
2008
2007 |
120,000
105,000 |
129,345
94,784 |
| Georg Daschner |
2008
2007 |
180,000
180,000 |
101,810
77,314 |
| Dr. Heiner Hasford2 |
2008
2007 |
—
375,840 |
—
263,560 |
| Dr. Torsten Jeworrek |
2008
2007 |
171,000
165,000 |
157,656
122,229 |
| Christian Kluge3 |
2008
2007 |
—
244,800 |
—
— |
| John Phelan4 |
2008
2007 |
410,483
460,559 |
130,520
117,677 |
| Peter Röder5 |
2008
2007 |
90,000
— |
37,242
— |
| Dr. Jörg Schneider |
2008
2007 |
275,000
252,000 |
238,257
194,722 |
| Dr. Wolfgang Strassl |
2008
2007 |
120,000
105,000 |
106,154
77,082 |
| Karl Wittmann6 |
2008
2007 |
—
244,800 |
—
— |
|
Total
|
2008
2007
|
1,931,083
2,663,159
|
1,479,509
1,231,605
|
1 The pension commitments include pension entitlements from former employers which have been transferred to Munich Re.
2 Retired from the Board of Management on 28 February 2007; commitment for occupational pension on reaching the age of 60.
3 Retired from the Board of Management on 31 December 2006.
4 Pension commitment from Munich Re America and personnel expenses of Munich Re America. Reduction in pension commitments due to lower dollar exchange rate compared with previous year.
5 Retired from the Board of Management on 31 December 2006.
6 Retired from the Board of Management on 31 December 2006.
Total remuneration of former members of the Board of Management
Payments to retired members of the Board of Management or their surviving dependants totalled €6.0m (5.2m).
Pension commitments
Personnel expenses of €0k (17k) were incurred for retired members of the Board of Management. As at 31 December 2007, the pension provisions and provisions for comparable benefits for the retired members of the Board of Management or their surviving dependants amounted to €0m (0m) after deduction of plan assets held by a separate entity (under a contractual trust agreement).