2020 Annual Financial Report

Chapter 3 : Governance and compensation

Annual variable compensation to be paid in 2021 for financial year 2020

The variable compensation of Jean-Michel Etienne, which, if targets are met, may represent up to 100% of his fixed compensation without exceeding this percentage, would be based on:

  • two criteria linked to the Groupe’s financial performance, each counting equally, for 30% of the variable compensation:
  • organic growth based on the Commitment submitted to the Supervisory Board, and
  • operating margin compared to a peer group;
  • four individual financial and non-financial criteria (governed by precise quantitative objectives), for 60% of the variable part, each one being taken into account on an equal basis:
  • management and execution of the savings plan in accordance with the initial Sprint to the Future program, only applied to 2020,
  • cash flow management,
  • employee expenses, and
  • achievement of the objectives of the “All In One” real estate program;
  • two CSR criteria, accounting for 10% of variable compensation:
  • 40% women on Executive Committees, and
  • 6% increase in the Groupe’s consumption of renewable energy to the detriment of fossil fuels (compared with 2019 – 31.3%).

In addition, as indicated in the compensation policy for the 2020 financial year, in the 2019 Universal Registration Document (see Section 3.2.1.1 “Exceptional items related to the Covid-19 pandemic”), the valuation of the performance of Jean-Michel Etienne takes into account, for the year 2020, without modifying his overall variable portion as a percentage of the fixed amount, his ability to manage the crisis by ensuring the health and safety of employees, maintaining smooth operations, protecting revenue and the client portfolios, rigorously managing costs, taking appropriate measures for the strict management of resources and the protection of the Groupe’s assets.

In accordance with the compensation policy adopted for the 2020 financial year, the Supervisory Board, after consulting the Compensation Committee, decided to take into account, in its assessment of the performance of Jean-Michel Etienne, the way in which the Covid-19 crisis was managed for the fundamental aspects set out in Section 3.2.2.3 of this document.