B _ Corporate Governance attributable to shareholders, each at 50 %. The resulting target achievement is adjusted by an individual contribution factor (ICF) in Target achievement factor to determine the the range of 0.8 to 1.2, which reflects both the results of the business variable remuneration division and the performance of the individual board member. If In line with the overarching strategic objective “simplicity wins”, the targets are not met, the variable compensation can be reduced to calculation of variable remuneration follows a simple system. The zero. If targets are significantly exceeded, the target achievement is annual bonus and LTI allocation are based on only two Group financial limited to 150 %. targets for the relevant financial year: operating profit and net income Group financial targets The minimum, target, and maximum values for the Group The Group financial targets are based on equally weighted targets for financial targets are set annually by the Supervisory Board. These are Group operating profit and Group net income attributable to documented for the respective next financial year and published ex- shareholders. Adjustments are only applied to acquisitions and post in the remuneration report. disposals that account for more than 10 % of the Group’s operating profit or net income attributable to shareholders, or that have a value- Individual performance indicators adding effect from a risk management perspective (e.g., portfolio The Group financial target achievement is multiplied by the ICF for transfers) and were not yet known at the time the plan was prepared. each board member. The ICF is based on an assessment by the This regulation is intended to prevent meaningful transactions from Allianz SE Supervisory Board, resting upon KPIs reflecting the having a negative impact on the remuneration of the Management respective board member’s area of responsibility and their personal Board. contribution. Operating profit highlights the underlying performance of ongoing core operations. − Business division targets: For board members with business- Net income attributable to shareholders is the profit after tax and related division responsibilities, the contribution to the financial non-controlling interests (minorities). Furthermore, the net income performance considers various indicators of profitability (e.g., forms the basis for the dividend payout and for the return on equity operating profit and net income) and productivity (e.g., expense calculation. Both key performance indicators (KPIs) are important ratio) for the respective business division. For board members with steering parameters for the Allianz Group and therefore reflect the a functional focus, division-specific performance targets are level of implementation of the Group’s strategy. determined based on their key responsibilities, and qualitatively The Group’s financial target achievement is limited to a maximum assessed. of 150 % and can drop to zero. 32 Annual Report 2021 − Allianz Group