Policy for the compensation of company officers
Once again in 2016, the Chairman and the Chief Executive Officer, as well as the Deputy Chief Executive Officers and the Group’s key operational managers on the Executive Committee, were still covered by the same compensation system.
For several years, this compensation system has consisted of a fixed component, supplemented by a variable component which may equal up to:
- 40% of annual fixed compensation when the Group’s profitability target as well as individual targets are met;
- 60% of fixed annual compensation for very strong performance.
The Group profitability target, determined on the basis of “operating profit on business activity”, is the same for executive company officers, Executive Committee members and managers whose variable compensation depends in part on it. Defined precisely, the values for the indicator’s lower and upper limits as well as the target are not made public for confidentiality reasons. The Company wishes to avoid any interference in financial communications and the forecasting of its results by the market.
The qualitative individual targets are not used to release a variable compensation component, but rather to make upward or downward adjustments to the amount paid on the basis of the main profitability target. As regards executive company officers, in extreme cases, this adjustment may result in the variable compensation portion being removed entirely or the amount paid being increased by up to a maximum of 30% of the upper limit on variable compensation. Personal qualitative objectives relate to specific assignments and/or the executives’ personal areas in need of improvement. In either case, as the dissemination of information pertaining to these objectives, whether within or outside the Company, often seems inappropriate, the latter are also not usually made public.