B _ Corporate Governance and selected international companies (including, for example, the top The Board of Management’s remuneration is decided upon by the positions in the STOXX Europe 600 Insurance), taking into account the entire Supervisory Board, based on proposals prepared by the company’s position, as well as the Allianz Group’s long-term Supervisory Board’s Personnel Committee. If required, the Supervisory performance, relative size, complexity, and internationality. Board may seek outside advice from independent external The benchmarking against the DAX companies in December consultants. The Personnel Committee and the Supervisory Board already took into account the extension of the peer group from 30 to consult with the Chairperson of the Board of Management in 40 companies. The outcome of the horizontal comparison is that assessing the performance and remuneration of Board of Allianz SE is well above 75th percentile relative to size (revenue, Management members. The Chairperson of the Board of number of employees, and market capitalization) compared to the Management is generally not involved in the discussion about their DAX companies. Accordingly, the total remuneration of the members own remuneration. The Supervisory Board designs the remuneration of the Board of Management is orientated on the upper quartile of the system for the members of the Board of Management in accordance remuneration of the peer companies. with the requirements of the German Stock Corporation Act (AktG) in its currently valid version as well as with regulatory requirements and Vertical appropriateness the recommendations of the German Corporate Governance Code, This comparison is based on the total direct compensation of a while ensuring clarity and comprehensibility. Feedback from investors member of the Board of Management and the average direct is also considered. compensation of an employee of the German Allianz companies. The Supervisory Board’s decision in December is based on the factor resulting from this comparison for the previous financial year. For the financial year 2020, the factor for the Chairperson of Board of Based on the remuneration system, the Supervisory Board determines Management to employee was “66”, and the factor for a regular board the target total compensation, and regularly reviews the member to employee was “36”. For the financial year 2021, the appropriateness of the remuneration. This is based on both a respective factor for the Chairperson of Board of Management to horizontal comparison (i.e., with peer companies) and a vertical employee is “70” and the factor regular board member to employee is comparison (in relation to Allianz employees). Again, the Supervisory “41”. Board’s Personnel Committee develops respective recommendations, if necessary with the assistance of external consultants. The structure, weighting, and level of each remuneration The following diagram provides an overview of the structure and component should be adequate and appropriate. amount of the target remuneration of the members of the Board of Management in the financial year 2021. Horizontal appropriateness The Supervisory Board regularly benchmarks the remuneration of the Board of Management of Allianz SE against other DAX companies 28 Annual Report 2021 − Allianz Group