Employees

All disclosures on the Management Board remuneration now exclusively include amounts disbursed in the financial year. This is a departure from the mixed presentation from previous years (partially remuneration, partially expenditure) in order to provide readers of the financial statements with an even clearer picture. The amounts from the previous years have been adjusted accordingly in order to ensure that the figures can be compared with the current financial year.

The active salaries of the members of the Management Board at UNIQA Insurance Group AG amounted to € 3,498 thousand in the reporting year (2014: € 4,710 thousand). The amount expended on pensions in the reporting year for former members of the Management Board and their survivors was € 2,751 thousand (2014: € 2,705 thousand).

The compensation to the members of the Supervisory Board for their work in the 2014 financial year was € 474 thousand. Provisions of € 425 thousand have been recognised for the remuneration to be paid for this work in 2015. The amount paid out in attendance fees and cash expenditures in the financial year was € 49 thousand (2014: € 33 thousand).

There are no advance payments or loans to or liabilities for members of the Management Board and the Supervisory Board.

Share-based remuneration agreement with cash settlement

In the 2013 financial year, the UNIQA Group introduced a share-based remuneration programme for members of the Management Board of UNIQA Insurance Group AG and for selected members of the Management Board of UNIQA Österreich Versicherungen AG, Raiffeisen Versicherung AG and UNIQA International AG. In accordance with this programme, entitled employees are conditionally awarded virtual shares effective 1 January of the relevant financial year which give them the right to a cash payment after the end of the benefit period. The first conditional award took place retrospectively effective 1 January 2013 and included 246,888 virtual shares in the UNIQA Insurance Group AG. The length of the benefit period for each tranche runs until 31 December 2016. No further shares were awarded.

The precise payment amount is contingent upon achieving performance targets, building up and holding UNIQA ordinary shares in real terms and holding an employment contract as a member of the Management Board by the end of the relevant benefit period. The amount of the cash payment at the end of the fourth year is linked to the average price for the ordinary share in the second half of 2016 and on achieving both performance targets, which are both weighted 50 per cent.

• Performance Target 1 – Total Shareholder Return (TSR): The degree of target achievement depends on the rank of the TSR of the UNIQA ordinary share among the companies managed in the DJ EuroStoxx TMI Insurance index.
• Performance Target 2 – Return on Equity (ROE): The degree of target achievement depends on the rank of the ROE of UNIQA among the companies managed in the DJ EuroStoxx TMI Insurance index.

Determination of the fair values

Determination of the first component (Performance Target 1) is based purely on market-based criteria (TSR), which results in an expected degree of achievement of 0 per cent. The fair value was determined using Monte Carlo modelling. No employment and market independent performance conditions (Performance Target 2) linked to business transactions were taken into account in determining the fair value. Measurement of the second component (Performance Target 2) is contingent upon non-market based criteria. The expected degree of achievement of 80 per cent was determined based on performance as at 31 December 2014 and 31 December 2015.

The provision amount determined at year-end is split up into both components of the share-based obligation as follows:

The following parameters were used to determine the fair value on the date of the award and on the measurement date for the virtual shares:

The expected volatility is based on an assessment of historical volatility for the Company’s share price over the past year.

No virtual shares were forfeited or exercised in the current financial year. The obligations from share-based remuneration are stated under “Other provisions” (Note 29) and are also included under the statements on “Related party transactions – individuals”.