B _ Corporate Governance The LTI grant is followed by a contractual vesting period of four years. − At the end of the contractual vesting period, the difference After that period, the LTI amount to be paid is determined based on between the Allianz TSR and the Index TSR is determined in the relative performance of the Allianz share, the relevant share price, percentage points; the result is multiplied by “2”: As the and the results of the sustainability assessment. comparison with competitors and the market is of outstanding importance, the outperformance/underperformance is − Relative performance versus peers: Besides the absolute share- weighted twofold. price development, the LTI payout takes the relative performance − To determine the factor, 100 percentage points are added to of the Allianz share into account. The total shareholder return the result. Example: 1 percentage point outperformance (TSR) of the Allianz share is benchmarked against the TSR of the results in a relative performance factor of 102 %; 1 percentage STOXX Europe 600 insurance index by reflecting the relation of point underperformance results in a relative performance the total performance of the Allianz share (“Allianz TSR”) and the factor of 98 %. total performance of the STOXX Europe 600 insurance index (“Index TSR”) between the start and end of the four-year In order to avoid incentivizing excessive risk-taking, the relative TSR contractual vesting period. The payout is based on the TSR performance factor is limited: it can vary between zero (for performance factor, which is calculated as follows: underperformance of the index by - 50 percentage points or lower) and 200 % (for outperformance of the index by minimum + 50 percentage points or higher). − Sustainability assessment: Prior to the payout of each LTI tranche, − Allianz share performance, payout, and cap: Following the end of the Supervisory Board determines, following a preliminary the four-year contractual vesting period, the granted RSUs are assessment by the Personnel Committee and the external auditor, settled in cash, based on the ten-day average Xetra closing price whether there are any sustainability-related concerns regarding a of the Allianz SE share following the annual financial media full payout. If so, payment of the tranche may be canceled in full conference in the year the respective RSU plan vests, multiplied by or in part. the relative TSR performance factor, and adjusted by the sustainability assessment, if necessary. The relevant share price is Subject of the sustainability assessment are: capped at 200 % of the grant price. Likewise, the relative TSR performance factor is capped at a maximum of 200 %. Taking into − compliance breaches, account the overall compensation cap (€ 6,000 thou for a regular − balance sheet issues, such as reserve strength, solvency, board member and € 11,750 thou for the Chairperson of the indebtedness, and ratings, Board of Management), the LTI payout in relation to the LTI target − KPIs entailed in the individual board members’ targets, such as – which deviates from the individual LTI component caps – is NPS, employee satisfaction, and climate targets. limited to 272 %. The assessment is made applying a comparable basis; i.e., any Outstanding RSU holdings are forfeited should a board member leave regulatory changes, changes in accounting regulations, or at their own request or be terminated for important cause. changes in calculation methods for the KPIs in question are taken into account. 34 Annual Report 2021 − Allianz Group