Airbus 2015 Annual Report Download - page 164

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 132 l
Corporate Governance
4.2 Interests of Directors and Principal ExecutiveOfficers
Proposal of policy from 2016
The Remuneration Committee regularly benchmarks the CEO’s
Total Direct Compensation (Base Salary, Annual Variable
Remuneration and LTIP) against an extensive peer group. The
last review took place in October2014, and was completed with
the assistance of an independent consultant: Towers Watson.
The relevant peer groups that were considered were proposed
by Towers Watson, and comprised 31 companies having
comparable economic indicators such as revenue, number of
employees, and market capitalisation. Financial institutions were
excluded from the peer group (for further details, see “—4.2.1.4
Implementation of the Remuneration Policy in 2015: CEO”).
This review showed that the CEO’s Total Direct Compensation
was slightly below the median level of the peer group. Based
on these findings and with regards to the track record of the
CEO, the RNGC recommended to increase the Total Target
Remuneration of the CEO by 7% to € 3,000,000 (€ 1,500,000
Base Salary + € 1,500,000 Target Variable Pay) in the frame of the
renewal of his mandate. This increase takes into consideration
the fact that his remuneration was not reviewed since 2012 and
is in line with the salary policy applied to employees across the
Group over that period.
SCENARIOS CEO TOTAL DIRECT COMPENSATION - 2015
Below Threshold
Target
Maximum
Base Salary Variable Remuneration (VR) Long-Term Incentive (LTIP)
0 1 2 3 4 5 6 7 8 9
Indications are inmillioneuros.
“Below Threshold” includes annual base Salary;
AnnualVariable Remuneration at 0%; LTIP not
vesting.
“Target” includes Base Salary, Annual Variable
Remuneration at target and LTIP grant face value.
“Maximum” includes Base Salary; maximum
Annual Variable Remuneration value (200%);
LTIPgrant projected at vesting date (250%).
As illustrated in the table below, the structure of the CEO’s Total Direct Compensation will remain unchanged in 2016. Indeed, the
on-target levels of Annual Variable Remuneration and LTIP will each amount to 100% of the CEO’s base salary.
SCENARIOS CEO TOTAL DIRECT COMPENSATION - 2016
Below Threshold
Target
Maximum
Base Salary Variable Remuneration (VR) Long-Term Incentive (LTIP)
0 1 2 3 4 5 6 7 8 9
Indications are inmillioneuros.
“Below Threshold” includes annual base Salary;
AnnualVariable Remuneration at 0%; LTIP not
vesting.
“Target” includes Base Salary, Annual Variable
Remuneration at target and LTIP grant face value.
“Maximum” includes Base Salary; maximum
Annual Variable Remuneration value (200%);
LTIPgrant projected at vesting date (250%).
c)Base Salary
The Base Salary of the CEO is determined by the Board of Directors, taking into account the peer group analysis mentioned above.
d)Annual Variable Remuneration
The variable remuneration is a cash payment that is paid each
year, depending on the achievement of specific and challenging
performance targets. The level of the variable remuneration for
the CEO is targeted at 100% of Base Salary; it is capped at
a maximum level of 200% of Base Salary. The entire variable
remuneration is at-risk, and therefore if performance targets
are not achieved sufficiently, no variable remuneration is paid.
The performance measures that are considered when awarding
the variable remuneration to the CEO are split equally between
Common Collective performance measures and Individual
performance measures.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015