Chrysler 2015 Annual Report Download - page 121

2015 | ANNUAL REPORT 121
Summary Overview of Remuneration Elements
The Executive Directors’ remuneration is simple and transparent in design, and consists of the following key elements:
Remuneration
Element Description Strategic Role
Base Salary Fixed cash compensation Attracts and rewards high performing executives via market
competitive pay
Short-term
variable pay*
• Performance objectives are annually predetermined and
are based on achievements of specific measures
• Comprised of three equally-weighted metrics, Adjusted
EBIT, Adjusted net profit, and Net industrial debt
• Target payout is 100 percent and maximum payout is 250
percent of base salary
• Drives company-wide and individual performance
• Rewards annual performance
• Motivates executives to achieve performance objectives
that are key to our annual operating and strategic plans
• Aligns executives’ and shareholder interests
Long-term
variable pay*
• All equity awards are based on achievements of 2014-
2018 business plan financial targets
• Performance criteria are comprised of equally weighted
metrics, relative Total Shareholder Return (TSR) and
Adjusted net profit
• Awards have three vesting opportunities, one third each,
after 2016, 2017 and 2018 based on cumulative results
• Encourages executives to achieve multi-year strategic and
financial objectives
• Motivates executives to deliver sustained long-term
growth
• Aligns executives’ and shareholder interests through long-
term value creation
• Enhances retention of key talent
Post-Mandate
and Pension
• The CEO participates in a company-wide pension scheme
and a supplemental retirement benefit
• Both the CEO and Chairman have post-mandate benefits
in an amount equal to five times their last annual base
compensation
Provides security and productivity
Other benefits Executive Directors may receive typical benefits such as a
company car, medical insurance, accident and disability
insurance, tax preparation, financial counseling, tax
equalization
Facilitates strong performance, consistent with offerings of
peer group companies
* The Chairman receives fixed compensation only and is not eligible for any variable compensation.
2015 Remuneration of Executive Directors
Our executive compensation program is designed to align the interests of our Executive Directors with those of our
shareholders to ensure prudent, short-term actions that will benefit the Company’s long-term value. It is designed
to reward our executives based on the achievement of sustained financial and operating performance as well as
demonstrated leadership. We aim to attract, engage, and retain high-performing executives who help us achieve
immediate and future success and maintain our position as an industry leader. We support a shared, one-company
mindset of performance and accountability to deliver on business objectives.
In 2015, our CEO’s compensation consisted of both fixed and variable pay elements. In keeping with our philosophy
of long-term shareholder value creation, the CEO’s total pay mix for 2015 included a significant percentage of at-risk
performance based compensation. For 2015, 86 percent of the CEO’s compensation was at-risk performance based
incentive compensation. The Chairman is not eligible for variable compensation.
2015 CEO Pay Mix 2015 Chairman Pay Mix
Long-term incentives
62%
Base Pay
14%
Base Pay
100%
Annual
incentives
24%
CEO 2015
Compensation
2015 Chairman
Compensation