ANNUAL VARIABLE COMPENSATION
- The Chief Executive Officer’s annual variable compensation is intended to encourage the achievement of the annual performance targets determined by the Board of Directors in line with Sodexo’s strategy.
- If all of the applicable targets are achieved, the annual variable compensation amounts to 100% of his annual fixed compensation (900,000 euro) and may reach up to 150% (1,350,000 euro) if the targets are exceeded.
|
|
Weight | Fiscal 2020 Results | Achievement level |
|---|---|---|---|
| FINANCIAL PERFORMANCE | FINANCIAL PERFORMANCE Weight
|
FINANCIAL PERFORMANCE Fiscal 2020 Results
|
FINANCIAL PERFORMANCE Achievement level
|
| Organic growth | Organic growth Weight 20% |
Organic growth Fiscal 2020 Results - 12% |
Organic growth Achievement level 0% |
| Underlying operating profit margin excl. currency effect | Underlying operating profit margin excl. currency effect Weight 20% |
Underlying operating profit margin excl. currency effect Fiscal 2020 Results 2.9% |
Underlying operating profit margin excl. currency effect Achievement level 0% |
| Net income growth (in millions of euro) | Net income growth (in millions of euro) Weight 10% |
Net income growth (in millions of euro) Fiscal 2020 Results (315) |
Net income growth (in millions of euro) Achievement level 0% |
| Free cash flow (in millions of euro) | Free cash flow (in millions of euro) Weight 20% |
Free cash flow (in millions of euro) Fiscal 2020 Results 72 |
Free cash flow (in millions of euro) Achievement level 0% |
| NON-FINANCIAL PERFORMANCE | NON-FINANCIAL PERFORMANCE Weight
|
NON-FINANCIAL PERFORMANCE Fiscal 2020 Results
|
NON-FINANCIAL PERFORMANCE Achievement level
|
| Health and Safety (lost time injury rate) | Health and Safety (lost time injury rate) Weight 10% |
Health and Safety (lost time injury rate) Fiscal 2020 Results 0.77 |
Health and Safety (lost time injury rate) Achievement level 100% |
| Talent management | Talent management Weight 10% |
Talent management Fiscal 2020 Results - |
Talent management Achievement level 75% |
| DJSI | DJSI Weight 10% |
DJSI Fiscal 2020 Results #1 |
DJSI Achievement level 100% |
| Total | Total
Weight 100% |
Total
Fiscal 2020 Results |
Total
Achievement level 27.5% |
Given the impact of the sanitary crisis on the Fiscal 2020 performance, the level of attainment of the objectives was 27.5%, or implicitly, variable compensation amounting to 247,500 euro.
However, given the decision made by the Board of Directors, the variable compensation for Fiscal 2020 has been suppressed.
Exceptionally and given the sanitary crisis caused by the Covid-19 pandemic, the budget for Fiscal 2021 is established for each of the first and second halves of the year, in line with the financial objectives communicated to the market. Thus, the financial performance targets were set in October 2020 for the first semester and will be set in April 2021 for the second semester.
For Fiscal 2021, the achievement rate for the Chief Executive Officer’s variable compensation will be measured at two points in time: following publication of the half-year interim results and following publication of the annual results. This structure will apply to all employees eligible for variable compensation.
LONG-TERM COMPENSATION
The long-term compensation program is intended to increase the Chief Executive Officer’s motivation and loyalty while aligning his interests with those of the Company’s stakeholders.
Long-term compensation currently consists solely of performance share grants.
Pursuant to the decision of the Board of Directors of November 6, 2019 to reduce the vesting-period from four to three years, and in order to maintain a regular annual delivery of performance shares, no performance shares were granted to the Chief Executive Officer in Fiscal 2020.
Long-term compensation awarded in Fiscal 2021 will be subject to performance criteria and to a presence condition.
Summary of the compensation of the Chief Executive Officer
Long-term compensation
Annual variable compensation
Fixed compensation
Fiscal 2019
Compensation paid :
€1,836,000
€893,000
€900,000
Fiscal 2020
Compensation paid :
€675,000
Fiscal 2020
Compensation policy :
€900,000 *
€900,000
Fiscal 2021
Compensation policy :
€1 800 000
€900,000 *
€900,000 *
* Amount of up to 1,350,000 euro if targets are exceeded.
For more information, see chapter 5 of the Universal Registration Document .