B _ Corporate Governance − Non-financial targets (incl. sustainability targets): Customer Determining the individual contribution factor (ICF) satisfaction (for example, Net Promoter Score (NPS)) and The Supervisory Board determines the ICF for each member of the employee satisfaction (for example, Allianz Engagement Survey) Board of Management based on the fulfillment of the individual are taken into account in the non-financial targets. The performance indicators. Most of the performance indicators are management qualities, including strategic properties, are also provided with quantitative criteria, and therefore offer a sufficiently assessed. The review of the individual management qualities concrete basis for the combined assessment. assesses behavioral aspects, such as customer orientation, The individual indicators are not weighted on a percentage basis, personnel management, corporate behavior, and credibility (for so that the ICF is not determined on the basis of a formulaic example, social responsibility, integrity, diversity). The following calculation. This allows the Supervisory Board to take appropriate elements were taken into account in 2021 with regard to consideration of the individual criteria and to react appropriately to sustainability/climate protection: changes in priorities during the year. Since the performance is determined without a specified weighting, the ICF covers a narrow − Decarbonizing the Allianz Group’s business operations and range of 0.8 to 1.2. increasing the share of renewable energy in order to reduce carbon emissions by 30 % by 2025, against a 2019 baseline. Long-term incentive (LTI) design − Decarbonizing the investment portfolio in line with the Asset The long-term, share-based compensation component makes up the Owner Alliance (AOA) with the interim target of reducing largest portion of variable compensation. It promotes alignment with emissions in listed equities and corporate bonds asset classes shareholders and reflects the sustainable implementation of the by 25 % by year-end 2024 (baseline year 2019). company’s long-term strategy. The LTI is based on the performance in − Securing the strong sustainability position in three leading absolute and relative terms (i.e., versus competitors) of the Allianz sustainability indices. share. Furthermore, the long-term development of KPIs is reflected in the deferred sustainability assessment following the four-year Additional information can be found in the Non-Financial Statement contractual vesting period. for the Allianz Group and Allianz SE. − Grant and contractual vesting period: The LTI is granted annually − The RSU allocation value is based on the ten-day-average in the form of virtual Allianz shares, so-called restricted stock units Xetra closing price of the Allianz stock following the annual (RSUs). The number of RSUs to be granted corresponds to the LTI financial media conference1. As RSUs are virtual stock without allocation amount, divided by the allocation value of an RSU at dividend payments, the relevant share price is reduced by the grant: net present value of the expected future dividend payments during the four-year contractual vesting period. − The LTI allocation amount is derived by multiplying the LTI target amount by the annual bonus achievement factor, and capped at maximum 150 % of the target level. 1_For accounting purposes, the determination of the fair value of RSUs is based on an option pricing model the volatility of the peer index, their correlation, and the expected dividends. The value of the RSUs used taking into account additional input parameters, including the term structure of interest rates and the for the board members’ compensation may deviate from this IFRS value, as a simplified calculation expected relative performance of the Allianz share price compared to the peer index. For the latter, method was applied to increase transparency and traceability. simulation techniques are applied at the valuation date to determine the volatility of the Allianz stock, Annual Report 2021 − Allianz Group 33