Fiscal 2020 Integrated Report

A responsible compensation policy

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 .