To incentivize and compensate the effort, commitment, and performance of its employees, Grupo Peña Verde has 3 remuneration policies (bonuses) adapted to the operations of each subsidiary.
Servicios Administrativos Peña Verde
Performance Bonus
The Human Resources area, under the oversight of the Evaluation and Compensation Committee, is responsible for implementing this policy. In order for employees to be eligible for this bonus, they must have a minimum of 6 months seniority and a permanent contract.
The bonus is calculated in February of the year following the period under evaluation and is paid no later than April of that year. In this regard, the performance bonus is tied to the following:
- Hierarchical level of the employee
- Result obtained in the performance evaluation
- Salary paid in December of the period evaluated
It is important to note that: i) the maximum amount is aligned with industry practice, according to information provided by an external firm specialized in competitive compensation studies; and ii) in the event that the Ethics Committee or the Legal Department has filed an administrative report against the employee being evaluated, the bonus will be subject to penalties.
Hierarchy
Performance Evaluation Components
Extra Bonus
Only 5% of the total workforce who, based on their Performance and Affinity Results, are in quadrants 6 and 9 of the following Talent Matrix will be eligible for this bonus:
Performance is evaluated based on the following factors:
- Achievement of strategic and area management indicators in line with key results
- Performance evaluation by adherence to culture pillars and/or skills
- Scoring of Area Strategic Initiatives
Affinity is determined by considering adherence to the job profile and cultural pillars.
REASEGURADORA PATRIA
Underwriting Bonus
The Actuarial and Finance Director of the Reinsurance Division is responsible for preparing the primary evaluation report with the Company’s technical results, which must be sent to the Corporate Deputy Director of Compensation and Talent Attraction.
Subsequently, the Corporate Deputy Director of Compensation and Talent Attraction has the task of notifying the Payroll Department and the Underwriting areas of the amount that each employee would be receiving.
The calculation of the signing bonus must be reviewed by the Chief Executive Officer, who, with the support of the Evaluation and Compensation Committee, will approve it.
It is worth mentioning that only employees with a minimum seniority of 12 months and who belong to the Underwriting Department with positions of Development Supervisor, Deputy Manager, Manager, Deputy Director, and Director, are entitled to the underwriting bonus.
The Underwriting Deputy Managers are responsible for informing employees of the authorized amount of the bonus and for providing the corresponding feedback to improve their performance. The Payroll Department is responsible for paying the bonus during the second half of July.
The maximum amount of the bonus must be equal to the employees’ statutory profit sharing plus the bonus (equal to or less than the number of months used as the basis for calculating the bonus) multiplied by 1.5. This incentive must be adjusted proportionally when the profit-sharing plan exceeds the amount determined according to the number of applicable months, but under no circumstances will it affect the payment of the profit-sharing plan.
In this sense, the months of salary to be received are defined in accordance with the direct impact that each hierarchical level has on the Group’s strategic objectives.
GENERAL DE SEGUROS
The Sales Department must report the progress on commercial goals in order for the Human Resource Department to adequately handle the payment of the commercial incentive.
For Branch Managers, Regional Directors and Area Managers, the calculation is made on the basis of their last monthly salary during the full year to be evaluated. The incentive allocation process is carried out on a monthly basis.
In the case of Office Managers and Commercial Executives, the calculation is based on the number of monthly insurance contracts and the incentive is paid semi-annually.
The Human Resource Management and the Sales Management of the Insurance Division are in charge of authorizing the amount of the bonus to be given
to each employee, which will be paid in the second half of the month following the evaluated period.
Each year, the Sales Department establishes the monthly sales budget, which is submitted for approval to the General Management of the Insurance Division. The following metrics are applied to this budget for each of the employee segments shown below:
Office Managers and Sales Executives
Regardless of the balance between Active Agents and Recruits, the incentive is paid starting at 100 insurance contracts per month per employee (no growth limit) and is subject to the fulfillment of the assigned sales budget. Payment is made per insurance contract (Ps. 50 for Active Agents and Ps. 100 for Recruits).
Branch Manager
The target amount is 50% of the monthly salary and is calculated each month upon meeting the sales budget of the assigned offices, as well as developing the distribution channel by attracting productive intermediaries. The criteria for payment are shown below:
Meet the monthly budget (original goal) with the following weighting:
Meet the distribution channel development budget for the corresponding region:
Regional Directors and Zone Managers
In order for the Regional Director and the Zone Manager to be eligible for the commercial incentive, 75% of the managers in their zone must have earned their quarterly incentive on at least once with 60% of the target amount.
Likewise, the following budgets must be exceeded:
- Semi-annual sales allocated per industry in their region
- Failure to meet the requirements per industry will result in a penalty of 15% of the incentive for each one; for example, failure to meet the requirements for 2 industries will result in a penalty of 30% of the incentive even if there is an overall surplus.
- Distribution Channel Development in the Region
- Sales through recruited agents, measured based on net premiums collected.
