Remuneration

Zurich’s employees are helping to shape the organization for the future, one that delivers a positive customer experience, values and develops its people, and acts responsibly towards society and the planet. Our remuneration philosophy is an integral part of our overall offer to employees, supporting them contribute to the company and achieve our goals. Guided by established remuneration principles, we strive to operate a balanced and effectively managed remuneration system that offers competitive total remuneration opportunities to attract, retain, motivate, and reward employees. Our remuneration system and practices are embedded in the Group’s Enterprise Risk Management framework and includes key safeguards:

• Long-Term, Deferred Remuneration: Emphasized for the most senior positions and key risk-takers.
• Risk-Based Performance Assessment: Applied to the Executive Committee (ExCo) members, Group leadership team, and Group key risk-takers.
• Conflict-Free Variable Remuneration: Structured for control and assurance functions to link to Group metrics rather than the metrics of the businesses they oversee.
• Risk Adjustments and Malus/Clawback Provisions: Ability to apply risk adjustments and enforce malus (all participants) and clawback (ExCo members and some additional participants) for variable remuneration.
• Minimum Share Ownership Requirements: Applied to the Board, Group CEO, and other ExCo members.

Our incentive plans link awards to appropriate performance criteria selected to support the execution of the Group’s strategy. The total amount of variable remuneration awarded or allocated is considered in connection with the Group’s long-term economic performance and sustainability framework.

The awards under the Group’s short-term incentive plan (STIP) are based on :

• Business Profitability and Customer Experience: Measured by the transactional net promoter score (TNPS), a global best-practice standard for measuring customer experience.
• Employee Performance and Development: A structured approach guides employees throughout the year in goal setting, career progression, and year-end reviews, to achieve individuals goals and exhibit behaviors in line with the Group’s code of conduct, purpose and values.
• Executive Committee (ExCo) Performance: Assessed against a balanced mix of financial, customer, people, and strategic measures to support long-term business strategy and sustainable performance. This includes evaluating execution against strategic priorities, sustainability factors, and a risk-based review.

Long-Term Incentive Plan (LTIP)

The LTIP is designed to promote risk awareness and sustainable business operations among senior positions, particularly those influencing the Group's risk profile. The Board annually reviews performance criteria to ensure alignment with the Group’s strategic and financial targets, and agreed upon before the performance period begins.

The performance metrics under the LTIP include an operational CO2e emissions metric with a weighting of 10 percent for the 2023-2025 and 2024-2026 performance periods. For the performance period 2025-2027, we raised the weight of sustainability related performance from 10 to 20 percent by introducing financed emissions intensity (10 percent weight) as an additional sustainability performance metric to the existing operational CO2e emissions metric of the Group (remaining at 10 percent weight). Financed emissions intensity is defined as metric tons of CO2 equivalent emissions per USD million invested of Zurich Insurance Group’s listed equity and corporate bond holdings. Further information can be found in the remuneration report of the Annual Report 2024.