ALLIANZ GROUP 16 Allocations to the budget available for increases of agreed pension benefits are primarily dependent on the economic per- formance of the company. When a member of Board of Man- agement retires from the Board at the end of his mandate, old- age pension is paid no earlier than upon completion of the 60th year of age, except for cases of professional disability or general disability for medical reasons, or payments to a beneficiary in the case of death. If the mandate is terminated for other reasons before the retirement age has been reached, a non-expiring pen- sion claim is maintained. But this claim does not include a right to the immediate payment of benefits. The amount of the total compensation for a given year depends on the relative success of the Group as a whole and on the Board member’s respective area of responsibility, as well as on the development of the share price. If one establishes a ranking of the average remuneration paid to the Board of Management at comparable German and European companies in recent years, the compensation of the Board of Allianz AG would fall approx- imately into the second third. If this listing takes into account criteria such as market capitalization, number of employees or complexity of the company, the average compensation of the Board of Allianz AG falls into the mid range.  The remuneration of the Supervisory Board was decided by the Annual General Meeting and is defined in article 9 of the Arti- cles of Association. The remuneration of the Supervisory Board is based on the size of the company, the functions and responsibilities of the members of the Supervisory Board and the economic situation of the company. For the most part, it is related to the dividend paid. The chairman and the deputy chairman of the Supervisory Board as well as the chairmen and members of its committees receive an additional remuneration. The remuneration of the members of the Supervisory Board includes two components: a fixed amount of 4,000 euros and a variable amount dependent on the dividend. This amount is calculated as follows: for each cent by which the dividend per share exceeds the amount of 15 cents, an additional remune- ration of 500 euros is paid. The amount of the dividend is de- termined by the appropriation of profit decided by the Annual General Meeting. The chairman of the Supervisory Board re- ceives double, and his deputy one and a half times the amount of this remuneration. The remuneration of the members of the Personnel Committee and of the Standing Committee is in- creased by 25 percent, that of the chairmen of these commit- tees by 50 percent. To prevent a conflict of interest on the part of the members of the Audit Committee with respect to the div- idend proposal of the Supervisory Board, these members merely receive a fixed annual remuneration of 30,000 euros for their work in this committee, while the chairman receives a fixed amount of 45,000 euros.  The additional remuneration of the committee members is capped by an upper limit. This limits takes effect when the re- muneration of the chairman of the Supervisory Board has reached triple and that of the other members of the Supervisory Board double the basic remuneration. Since the dividend policy of the Allianz Group is oriented toward the long-term, the re- muneration of the Supervisory Board contains no additional component that is based on the long-term performance of the company. Amount of compensation Remuneration of the Supervisory Board