Employees

Both figures include the expenditure for pensioners and surviving dependants (basis: Austrian Commercial Code valuation). The indicated expenses were charged to the Group companies based on defined company processes.

For the period, expenses for remuneration of Management Board members of UNIQA Insurance Group AG amounted to € 4,923 thousand (2012: € 7,149 thousand). In the reporting year, former members of the Management Board and their surviving dependents received pensions of € 2,699 thousand (2012: €2,644 thousand).

The remuneration paid to the members of the Supervisory Board for their work in the 2012 financial year was € 380 thousand. Provisions of € 380 thousand have been recognised for the remuneration of their work in the 2013 financial year. In the financial year, a total of € 31 thousand (2012: € 36 thousand) was paid out in attendance fees and cash expenditures.

There are no advances or loans or liabilities assumed for members of the Management Board or the Supervisory Board.

Agreement on cash-settled share-based payment

In the financial year 2013, the UNIQA Group introduced a share-based remuneration program for the members of the Management Board of UNIQA Insurance Group AG and selected Management Board members of UNIQA Österreich Versicherungen AG, Raiffeisen Versicherung AG and UNIQA International AG. In line with the programme, as of 1 January of the respective financial year entitled employees are granted virtual shares on a contingent basis, which grant entitlement to a cash payment at the end of the performance period. The first contingent grant took place retroactively to 1 January 2013. The duration of the performance period of each tranche is to 31 December 2016.

The condition for the payment of the virtual shares is achieving performance targets, buying and holding real UNIQA ordinary shares and an employment agreement with UNIQA as member of the Management Board to the end of the respective performance period. The level of the cash payment at the end of the fourth year is tied to achieving the two performance targets. Each of the performance targets has a weighting of 50%.

• Performance Target 1 – Total Shareholder Return (TSR): The final number of virtual shares depends on the ranking of the TSR of the UNIQA ordinary share among the companies included in the DJ EuroStoxx TMI Insurance Index.
• Performance Target 2 – Return on Equity (ROE): The final number of virtual shares depends on the ranking of the ROE of UNIQA among the companies included in the DJ EuroStoxx TMI Insurance Index.

Determination of the fair values

The allocation volume of the first component (Performance Target 1) depends entirely on market-based criteria (TSR). Fair value is determined using a Monte-Carlo simulation. Performance targets which are independent of employment and market (Performance Target 2), but which relate to transactions are not included in determining the fair value.

As at the end of the year, the provisions recorded break down among the two components of the share-based commitment as follows.

The following parameters are used in determining the fair values on the day of grant and on the date the virtual shares are measured:

The expected volatility is based on an assessment of the historical volatility of the company’s share price, particularly in the period equivalent to the expected duration.

The final allocation volume of the second component (Performance Target 2) does not depend on market-based criteria (TSR). The expected performance achievement is based on the historical performance of the last four years.

Transition of the outstanding virtual shares

The number and weighted average of the exercise price of the virtual shares in the share-based programme develops as follows:

For the TSR tranche, expected adjustments in the allocation level are reflected in the fair value of the options. On the other hand, there is an adjustment in the number of options allocated for the ROE tranche.

In the current financial year, no options expired or were exercised.

Obligations from share-based payments are reported under Other provisions (Notes 27) and are included in the context of transactions with related parties.