Airbus 2015 Annual Report Download - page 165

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 133 l
Corporate Governance
Registration Document 2015
4.
4.2 Interests of Directors and Principal ExecutiveOfficers
Common Collective Component
The Common Collective component is based on EBIT* (45%),
Free Cash Flow (45%) and RoCE (10%) objectives. Each year,
the AirbusGroup Board of Directors sets the goals for these
key value drivers at Group and Division levels. The Common
Collective financial targets relate closely to internal planning and
to guidance given to the capital market (although there may be
variations therefrom).
To calculate the Common Collective annual achievement
levels, actual EBIT*, Free Cash Flow and RoCE performance
are compared against the targets that were set for the year. This
comparison forms the basis to compute achievement levels,
noting that the actual EBIT*, Free Cash Flow, and RoCE levels are
occasionally adjusted for a limited number of factors which are
outside management control (such as certain foreign exchange
impacts or unplanned Merger and Acquisition activities). The
RNGC’s intention is to ensure ambitious financial targets and
to incentivise the CEO’s commitment to meeting these targets.
Airbus Group
Executives
Common
Collective
Financial
Targets
FCF (Free Cash Flow)
Annual, M€ (45%)
Measures cash generation
Driven by cash provided / used for operating,
financing, and investment activities
EBIT (Earnings before Interest & Tax)
Annual, M€ (45%)
Measures profitability
Driven by revenues and operating
expenses
Measures how much profit is generated by
the capital invested in the business
Driven by operational and capital efficiency
RoCE
Annual, % (10%)
Individual
The Individual element focuses on Outcomes and Behaviour.
Individual Performance is assessed in these two important
dimensions:
 Outcomes encompass various aspects of what the CEO
can do to contribute to the success of the business: specific
business results he helps achieve, projects he drives and
processes he helps improve. The individual targets of the
CEO are comprehensive and shared with all employees via
the Company Top Priorities;
 Behaviour refers to the way results have been achieved,
which is also critical for long-term success: how the CEO and
the Board of Directors work as a team, how the CEO leads
the Group Executive Committee, quality of communication,
encouragement of innovation, etc. A specific part of the
Behaviour assessment relates to ethics, compliance and
quality issues.
e)Long-Term Incentive Plan
For the CEO, the Company’s current LTIP is comprised
only of Performance Units. One Unit is equal in value to one
AirbusGroup share.
Performance Units
Performance Units are the long-term equity-related incentive
awards that are currently granted to the CEO. LTIP awards
are granted each year. Each grant is subject to a three-year
cumulative performance objective. At the end of the three-year
period, the grant is subjected to a performance calculation to
determine whether and to what extent it should vest. Depending
on continued employment, grants attributed until 2013 will vest in
four tranches, the payment of which takes place approximately
6, 12, 18 and 24months following the end of the performance
period. Depending on continuous employment, grants attributed
from 2014 would vest in two tranches, the payment of which
would take place approximately 6 and 18months following the
end of the performance period.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
Q