Airbus 2015 Annual Report Download - page 169

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 137 l
Corporate Governance
Registration Document 2015
4.
4.2 Interests of Directors and Principal ExecutiveOfficers
proposed by Towers Watson, and comprised 31companies(1)
having comparable economic indicators such as revenue,
number of employees and market capitalisation. Financial
institutions were excluded from the peer group.
Based on this review the RNGC concluded again this year, that
the CEO’s Total Direct Compensation was slightly below the
median level of the peer group.
b)Base Salary
For 2015, the Base Salary was set by the Board of Directors
at € 1,400,004 (unchanged compared to the annualised salary
paid in the previous year). The CEO’s Base Salary level was
set in July2012, shortly after his appointment. Any review of
the CEO’s Base Salary will also take into consideration salary
increases of employees across the Group.
c)Annual Variable Remuneration
As stipulated in the Company’s Remuneration Policy, the CEO’s
Annual Variable Remuneration is targeted at 100% of Base
Salary and capped at 200% of Base Salary. It is subject to
the fulfilment of Collective and Individual performance targets.
For 2015, the Annual Variable Remuneration amounted to an
aggregate € 1,932,000 composed of € 987,000 for the Common
Collective Component (141%), and € 945,000 for the Individual
part (135%).
The Common Collective Component results from a composite
141% achievement of EBIT*, Free Cash Flow and RoCE
objectives.
This achievement mainly reflects a significant Free Cash Flow
before M&A over-performance against the budgeted target and
guidance given to the market; the main drivers of that success
were the solid operational performance, healthy pre-delivery
payments inflows, and on-going efforts to control working
capital during programme ramp-up phase.
EBIT*, compared to the budgeted target and guidance, was
globally good, in spite of an unplanned A400M provisions.
Finally, RoCE slightly exceeded the target, thanks to a well-
controlled capital employed.
Normalisation adjustments of EBIT* were made to exclude
currency exchange differences against the budget rate, or those
arising from phasing mismatches. Importantly, the impact of
M&A (especially the Dassault shares sale) were excluded from
EBIT* and Free Cash Flow to determine the achievement level.
The Individualpart results from a high achievement level of
135% out of 200%, assessed by the RNGC and approved by the
Board on the basis of the CEO’s performance and behaviour,
mostly with respect to the eight Group priorities agreed at
the start of the year. For each of these outcomes, leadership,
personal performance and contributions were examined.
The factors determining the high assessment were among
other achievements: a solid financial and operational performance
with a record order book supporting the commercial aircraft
ramp-up plans and driving operational efficiency (e.g.: break
even on the A380 programme, delivery of 14A350XWBs in the
first year of industrialisation, acceleration of the A350XWB and
A400M ramp-ups and A320neo transition, signature of Ariane6,
launch of the X6); an initiated digital strategy (e.g.: selection of
OneWeb to build 900 small satellites to enable global internet
access, creation of a new corporate venture capital and business
innovation center in Silicon Valley, and the implementation of a
cyber security improvement plan); reinforcement of corporate
social responsibility (e.g.: opening of new algae cultivation facility
to produce bio-kerosene and chemical products, launching
of a programme to help airlines reduce their environmental
footprint with tailored services and expertise), reinforced anti-
corruption policy and programme (e.g.: updating Group policies
with overarching standards of business conduct, integrity and
transparency, including for suppliers and business partners);
a reinforced worldwide footprint with local industrial presence
(e.g.: inauguration of Airbus Final Assembly Line in Alabama,
launching of “Make-in-India” initiative).
Conversely, certain areas were considered as work-in-
progress, and contributed to lowering the achievement
assessment, such as the operational disappointments leading
to sudden charges on the A400M programme; besides, certain
on-going objectives are repeated into 2015 priorities, such as
those relating to continuing to set a commanding tone from the
top regarding the updating of processes supporting Ethics and
Compliance; the completion of a group vision on responsibility
and eco-efficiency, and the introduction of an updated group-
wide environmental policy; the implementation of the “one-roof”
management of our activities in key countries. The RNGC and
the Board noted that the CEO’s performance assessment is also
consistent with the average outcome of the Group Executive
Committee Members’ assessments.
(1) France: Air Liquide, Danone, Michelin, Renault, Sanofi, Schneider Electric, GDF Suez, Vinci.
Germany: BASF, Bayer, BMW, Daimler, Lufthansa, Deutsche Post World Net, Deutsche Telekom, E.ON, Henkel, RWE, SAP, Siemens, ThyssenKrupp.
UK: Anglo American, BP, GlaxoSmithKline, Glencore, Imperial Tobacco, Rio Tinto, Rolls-Royce, Royal Dutch Shell, Unilever.
US: AT&T, Boeing, Caterpillar, Cisco Systems, Coca-Cola, General Electric, IBM, Intel, Johnson & Johnson, Microsoft, Pfizer, Procter and Gamble, United Technologies, Verizon.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
Q