Annual Report 2012 - Swiss Life

199 Consolidated Financial Statements
Principal actuarial assumptions (weighted averages)
2012 2011
Discount rate 2.1% 2.7%
Expected rate of return on plan assets 3.6% 3.6%
Future salary increases 1.6% 1.6%
Future pension increases 0.2% 0.8%
Defined contribution plans
Certain subsidiaries sponsor various defined contribution plans. Participation in the various plans is
based either on completion of a specific period of continuous service or on the date of hire. The plans
stipulate contributions by both employers and employees. The expenses under these plans amounted
to CHF 1 million in 2012 (2011: CHF 1 million).
Equity compensation plans
For 2009 and 2010, a share-based payment programme was established which gives the members of
the Corporate Executive Board and other senior management members of the Swiss Life Group the
right to receive a certain number of Swiss Life Holding shares (performance share units, PSUs) after
three years of service if certain conditions are fulfilled. The number of the shares allocated depends
on two criteria. One criterion is the performance of the share price of the Swiss Life Holding share
during the vesting period of three years. The other criterion is the performance of the share price of
the Swiss Life Holding share during the vesting period of three years compared to the performance of
the Dow Jones STOXX 600 Insurance Index. For the PSUs issued in 2010, a maximum possible factor
of 2.0 applies. For the PSUs issued in 2009, the maximum possible factor is 1.5. No minimum possible
factor is applied in 2009 and 2010 so that the number of PSUs could drop to zero after three years.
For 2012 and 2011, participants in the share-based payment programme are allocated restricted share
units (RSUs) instead of PSUs. As with PSUs, RSUs grant the holder future subscription rights, entitling
him to receive Swiss Life Holding shares free of charge after a three-year period has elapsed and if
certain conditions are fulfilled, but without additional performance leverage. The attribution of
shares after the expiry of the three-year deferral period will be effected on a 1:1 basis (1 RSU = 1 share).
The value of the RSUs during the three-year term develops linearly with the Swiss Life Holding share
price and systematically corresponds with shareholder interests. The plan also provides for adjustment
and reclaiming mechanisms (clawback).
In 2009, the number of PSUs granted under this programme amounted to 53 216. The fair value at
the mea surement date amounted to CHF 51.22. The date of grant was 1 April 2009.
In 2010, the number of PSUs granted under this programme amounted to 68 510. The fair value at
the mea surement date amounted to CHF 149.98. The date of grant was 1 April 2010.
In 2011, the number of RSUs granted under this programme amounted to 68 730. The fair value at
the mea surement date amounted to CHF 140.05. The date of grant was 1 April 2011.
In 2012, the number of RSUs granted under this programme amounted to 94 040. The fair value at
the mea surement date amounted to CHF 93.77. The date of grant was 1 April 2012.
Swiss Life – Annual Report 2012