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## OTHER INFORMATION 

## 43 Other information 

## General information about the parent company 

The parent company of the Group is Allianz AG, Munich. The com- pany is an “Aktiengesellschaft” (public stock corporation) incorpo- rated in Germany. It is recorded in the German Commercial Register under its registered address at Koeniginstrasse 28, 80802 Munich. Besides serving as holding company for the Group, Allianz AG also acts as reinsurance carrier for the Group. 

## Number of employees 

At the end of 2003, the Group employed a total of 173,750 (2002: 181,651) people. 82,245 (2002: 86,768) were employed in Germany and 91,505 (2002: 94,883) abroad. The number of employees un- dergoing training decreased by 1,525 (2002: 657) to 6,063 (2002: 7,588). 

## Personnel expenses 

<img src='content_image/39901.jpg'>

## Stock related remuneration 

The Group applies the fair value recognition provisions of FAS 123 in accounting for its stock related remuneration plans. Refer to Note 4 for further discussion of the Group’s accounting and valuation policies. 

## Stock purchase plans for employees 

Shares in Allianz AG are offered to qualified employees in Germany and abroad within pre-defined timeframes at favorable conditions. In order to be qualified, employees must have been employed in con- tinuous service, or had a position as an apprentice, for a period of 6 months prior to share offer and notice of termination of employment must not have been served. Share purchase plans also include re- strictions relating to the amount that the employee can invest in pur- chasing shares. All participating enterprises in Germany and abroad impose restrictions on the disposal of shares, though the length of time varies from a minimum of 1 year to a maximum of 5 years, depending on the country involved. The shares are freely disposable 

after the expiration of the minimum holding period. The number of shares sold to employees under these plans was 944,625 in 2003 (2002: 136,222; 2001: 361,235). The difference between the exercise price and the market price of Allianz shares of ¤ 16 mn in 2003 (2002: ¤ 5 mn; 2001: ¤ 27 mn) was reported as part of compensation ex- pense. 

## Stock-based compensation plans in the Group 

## Group equity incentive plans 

Group Equity Incentives support the orientation of senior manage- ment, and in particular the Board of Management, toward the long- term increase of the value of the company. 

In 1999, Allianz AG introduced Stock Appreciation Rights (SAR) through which part of total remuneration is directly tied to the de- velopment of the Allianz share price. In 2003, Restricted Stock Units (RSU) with a 5-year vesting period were issued for the first time. The relative volume of SAR issued in 2003 was reduced accordingly. 

Allianz senior management worldwide is entitled to participate in these Group equity incentives. In fiscal 2003, more than 550 sen- ior managers in 28 countries and 74 companies received a corre- sponding offer. 

Awards were granted by the respective companies in accordance with uniform group-wide conditions. The grant price for SAR and RSU applicable for the award is calculated on the basis of the average daily closing price of the Allianz share in Xetra trading on the 10 trading days following the Annual General Meeting of Allianz AG. The grant price for fiscal 2003 was ¤ 65.91. 

The number of SAR and RSU offered is set individually for each participant and is determined on the basis of the grant price, the eco- nomic development of the value of Allianz AG and the respective re- sponsible company in accordance with the Economic Value Added (EVA ® ) concept, a capital-cost-based target performance of the Allianz share and individual elements such as fixed remuneration and performance. 

The volume of the rights granted, and thus the potential gain for the participant depends essentially on the economic performance. 

Of the Group equity incentives, half of the value determined at the grant date is allocated to SAR and RSU, respectively. Depending on the different values calculated per SAR and RSU at the grant date, participants in the plan receive a different number of SAR and RSU. 

In fiscal 2003, the following number of SAR and RSU was granted to senior managers of the Allianz Group worldwide: 

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