The remuneration concept is designed to prevent conflicts of interest and damaging incentives from negatively impacting the company or our investment funds. It is consistent with the goals of the investment funds we manage and our risk strategy, and it accounts for sustainability risks. It incentivises adherence to and the furtherance of ESG compliance.

The remuneration concept aims to encourage and motivate the employees to perform. It applies to all employees equally and meets the regulatory requirements.

Calculation of staff remuneration

In addition to a function-based monthly salary, the remuneration system also contains a variable remuneration component. We also offer other benefits such as a company pension and contributions to capital formation.
For non-tariff employees and senior executives, an individual target bonus is defined that is a percentage of the remuneration. This percentage depends on the function in question.

The target bonus for non-tariff employees is for a one-year period. For senior executives the target bonus comprises an annual bonus and a four-year bonus.

The actual amount paid out in the annual bonus for employees and senior executives in market and sales-oriented functions depends on the degree to which the individual and company targets are achieved – also taking into account sustainability risks. For employees and senior executives in functions that do not have a market or sales orientation, the actual amount paid out is based solely on the degree to which the company's objectives are achieved. There are no contractually guaranteed bonuses or severance packages. For senior executives, the degree to which the company group goals and pre-defined ESG goals are achieved also affects the amount of the multi-year bonus.

Remuneration system of the identified employees pursuant to Article 37 KAGB

Under the German Investment Code (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 take sustainable decisions and successes into account, part of the variable remuneration is based on a performance and assessment period of several years, and paid out retrospectively. The decisive factors for how much bonus is paid are the achievement of personal objectives and how well the company and company group achieve their objectives. One bonus component is linked to the value of the Munich Re shares and ESG targets, for example. There is no guaranteed bonus.

Remuneration committee

MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH has a remuneration committee comprising the chairperson of the supervisory board, the deputy chair and the head of Human Resources. This committee reviews the remuneration system annually.