ALLIANZ GROUP Our Employees 94 Performance orientation and remuneration Our performance and result-based remuneration is based on management by agreed-upon individual objectives. In the report- ing year, this tool was more closely integrated with our value- oriented management control and planning strategy. Remuner- ation of upper- and mid-level management is tied to meeting ob- jectives and to the success with which our strategy for increas- ing the value of the company is implemented. Total wages and salaries paid by the Group to its employees worldwide amounted to 8.8 (9.7) billion euros in 2003. Social security contributions, pensions and other employee benefits amounted to 2.2 (2.3) billion euros. In 2003, we once again launched an employee stock pur- chase plan, which offered Allianz shares at preferential condi- tions to over 140,000 employees in 22 (24) countries. Our top-level management participates in the new Group Equity Incentive Plan, which replaced the previous Long-term Incentive Plan. The new program is based on stock appreciation rights (SAR) and restricted stock units (RSU), which provide for a balanced incentive structure. The potential yield depends on the development of the Allianz AG share price. The calculation of grants takes into account the Economic Value Added (EVA ® ) of the Allianz Group, the EVA ® of the respective Group compa- nies. Objectives reached are measured the cost of capital. The Group Equity Incentive Plan meets all requirements and rec- ommendations of the German Corporate Government Code.  More detailed information on stock-based remuneration is provided on pages 14 and 16 of this Annual Report. We would like to thank the employees and representatives of our Group companies for their dedication and effort in the dif- ficult year 2003. We also thank the members of the works coun- cil, the elected speakers of our management team and the rep- resentative bodies of our independent sales force for their con- structive and successful cooperation. Thank you! EVA$^{® }$is a registered Trademark of Stern Steward & Co.