Remuneration

(1) The remuneration systems for managers, employees, and supervisory board members of insurance undertakings must be appropriate, transparent, and geared to the sustainable development of the undertaking.
(2) Insurance undertakings may grant remuneration to managers and supervisory board members for other activities they perform for the undertaking concerned only insofar as this is compatible with their duties as members of a governing body.
(3) The parent undertaking of a group must ensure that the remuneration systems for managers, employees, and supervisory board members throughout the group are appropriate, transparent, and geared to sustainable development. The parent undertaking of a group within the meaning of this subsection is the undertaking at the head of the group that is itself either an insurance undertaking or an insurance holding company.
(4) Under the conditions of section 134(1), the supervisory authority should order that the insurance undertaking restrict, to a specified proportion of the annual result, or eliminate entirely, the total annual amount that it provides for the variable remuneration of all managers and employees (total amount of variable remuneration). Under the conditions of section 134(1), the supervisory authority should further prohibit the payment of variable remuneration components, or restrict it to a specified proportion of the annual result. Insurance undertakings must give effect to the power to order, prohibit, and restrict under the first and second sentences in corresponding contractual arrangements with their managers, employees, and supervisory board members. Insofar as contractual arrangements on the granting of variable remuneration conflict with an order, prohibition, or restriction under the first or second sentence, no rights may be derived from them.
(5) Subsections (1), (3), and (4) do not apply insofar as the remuneration is agreed by collective bargaining agreement or, within its scope, by agreement of the parties to the employment contract on the application of the collective bargaining provisions, or in a works or service agreement based on a collective bargaining agreement.
(6) For the conclusion or brokering of residential consumer credit agreements, the structure of intermediaries' remuneration must not impair their ability to act in the best interest of the consumer; in particular, it must not be linked to sales targets.