Chrysler 2015 Annual Report Download - page 118

118 2015 | ANNUAL REPORT
Remuneration of Directors
Remuneration of Directors
Remuneration Report for Executive Directors
The quality of our leadership and their commitment to the Company are fundamental to our success. FCA’s
remuneration principles support our business strategy and growth objectives in a diverse and evolving global market.
Our Remuneration Policy is designed to reward competitively the achievement of long-term sustainable performance
and to attract, motivate and retain highly qualified executives who are committed to performing their roles in the
long-term interest of our shareholders. Given the changing international standards regarding responsible and sound
remuneration, a variety of factors are taken into consideration, such as the complexity of functions, the scope of
responsibilities, the alignment of risks and rewards, national and international legislation and the long-term objectives
of the Company and its shareholders. Our Remuneration Policy is reviewed annually by our Compensation Committee
of the Board of Directors (the “Compensation Committee”).
Remuneration Policy Available on Our Website
The Non-Executive Directors of the Board determine the compensation for Executive Directors with reference
to the Company’s Remuneration Policy for Executive Directors (the “Policy”) based on recommendations of the
Compensation Committee. The Executive Directors’ Compensation is based on the remuneration policies adopted
in the past by the Company (and its predecessors) as aligned with Dutch law and the Dutch Corporate Governance
Code. At the 2015 Annual General Meeting of Shareholders (“AGM”), our shareholders approved the Company’s
Remuneration Policy, which we presented for the first time as a merged, Netherlands incorporated entity, Fiat Chrysler
Automobiles N.V. (“FCA”). Our Remuneration Policy is available in full on the Company’s website, www.fcagroup.com,
found in the 2014 Annual Report.
The Compensation Committee reviews the Remuneration Policy versus its implementation, and its outcome versus
actual performance. The Committee concluded that there were no reasons to recommend adjustments to the Policy at
the 2016 AGM. However, to reflect the compensation decisions made for 2015 by the Compensation Committee, we are
providing supporting information in the Remuneration Report table along with contextual discussion where necessary.
Financial Year 2015 - Select Business Highlights
A key tenet of the Policy is pay for performance. With regard to 2015 performance, the Company’s 2015 financial
results exceeded the Company’s guidance. To provide perspective of the Company’s performance during 2015, the
following table highlights some of the key achievements and initiatives throughout the year:
Financial Highlights Strategic Developments and Initiatives
Worldwide shipments of 4.6 million units; Jeep up 21 percent year-
over-year
The Ferrari spin-off which improved the Company’s Net industrial
debt
Net revenues increased by 18 percent year-over-year to €110.6
billion
Plan to remove US ring-fencing in 2016; major step with prepayment
in 2015 of the secured senior notes of FCA US due in 2019 and 2021
Adjusted EBIT of €4.8 billion, reflecting a 43 percent increase over
2014, with all segments profitable in the fourth quarter of 2015
Realignment of production portfolio to better meet market demand
€2,026 million of Adjusted net profit (i.e, Net profit excluding
unusuals)
Key products launched in the year:
• Jeep Renegade introduced in US, China and Brazil
• Jeep Cherokee local production started in China
• New Fiat Tipo compact sedan launched in EMEA
• Production of New Fiat Toro mid-size pickup truck began at the
new Pernambuco plant
Excluding Ferrari, Net industrial debt was €5.0 billion and total
available liquidity was €24.6 billion at December 31, 2015
Continued enhancement of risk management, utilizing the
Company’s Enterprise Risk Management model