ALLIANZ GROUP 14 The remuneration of the Board of Management of Allianz AG supports sustainable value-oriented management. In the last several years, the remuneration  instruments were increasingly differentiated, in parallel to the continued development of the control  instruments. The objective of this differentiation is to arrive at a remuneration system that is balanced in its structure, and appropriate and competitive in terms of its amount. The remuneration of the Board of Management is determined by the Personnel Committee of the Supervisory Board. The re- muneration structure is regularly discussed and examined in the plenary meetings of the Supervisory Board. The remuneration paid to members of the Board of Management from mandates at Group companies is turned over to the company. Of the remu- neration received from mandates in companies outside the Group, 50 percent is turned over to the company. Indications on the amount of remuneration are provided in the appendix to this Annual Report on pages 171 and 172. In order to meet the above objectives for the remuneration for the Board of Management, this remuneration is made up of sev- eral components, which are explained in the following table: Structure of remuneration for the Board of Manage- ment Remuneration component Related to Mode of payment Variability Share if objective  is met 100% Fixed remuneration Basic salary, compensation in  kind and ancillary compensation Function, Responsibility Monthly Fixed 23 % Variable remuneration Annual bonus Success of Group/company and individual performance Annually in the following year 0 – 165 % 27 % 3-year-bonus Achievement of a  In the 4th year after the grant 0 – 120 % 12 %  3-year-objective (annual share) Stock-based remuneration 33 % Stock-appreciation rights (SAR) Participation in  After a two-year vesting period 0 – 150 % (calculated value  share price gains at time of grant) Restricted stock units (RSU) Creation of a long-term  After a five-year vesting period 1:1 Share price (calculated value  equity position at time of grant) Provision Corporate retirement plan,  Length of service, Disability or Fixed 5 % pension retirement provision,  retirement age (actual expense) benefits