2007 Interactive Registration Document - Renault

04 INTEREST
CORPORATE GOVERNANCE
OF SENIOR EXECUTIVES
4.4 INTEREST OF SENIOR EXECUTIVES
4.4.1 REMUNERATION OF SENIOR EXECUTIVES AND CORPORATE OFFICERS
4.4.1.1 REMUNERATION OF SENIOR
EXECUTIVES ✦
PROCEDURE FOR DETERMINING REMUNERATION
Members of the Renault Management Committee receive a consideration
comprising a fi xed and a variable portion. The variable portion is based on the
company’s economic performance in the previous year. It comprises fi ve factors:
(i) the difference between budgeted and actual operating margin, (ii) maximizing
the elements between operating margin and net income excluding equity income
from Nissan and Volvo, (iii) the results achieved in terms of reducing warranty
expenses, (iv) the reduction in general, commercial and administrative expenses,
and (v) an individual criterion related to the performance of the sector for which
the member in question is responsible.
REMUNERATION PAID IN 2007
In 2007, the total consideration paid to the 22 members of the Renault
Management Committee amounted to €12,696,891 of which €8,084,853 for
the fi xed portion (compared with €12,984,932 and €8,830,626 respectively,
in 2006). For the record, there were 26 members in 2006.
Renault Management Committee members do not receive directors’ fees from
Group companies in which they hold senior offi ce.
The total remuneration of the President and CEO was as follows (in €):
4.4.1.2 REMUNERATION OF CORPORATE
OFFICERS
The criteria for calculating the variable remuneration of the President and CEO
were set by the Board of Directors on February 12, 2008, on the recommendation
of the Appointments and Remuneration Committee. They are consistent with
the criteria applied to the members of the Group Executive Committee and the
Renault Management Committee:
return on equity;
difference between budgeted and actual operating margin.
There is an additional, qualitative criterion linked to strategy and
management.
The variable rate is between 0% and 150% of the fi xed portion. For 2007
it was 116%.
VARIABLE PORTION FOR
DIRECTORS’ FEES FOR
THE YEAR, PAID OUT
THE YEAR, PAID OUT TOTAL ANNUAL TOTAL REMUNERATION
YEAR FIXED PORTION THE FOLLOWING YEAR IN-KIND BENEFITS THE FOLLOWING YEAR REMUNERATION PAID DURING THE YEAR
2007 1,200,000 1,392,000 14,429 28,000 2,634,429 2,634 429
2006 1,200,000 1,392,000 9,663 28,000 2,629,663 2,034,163
2005 800,000 (for 8 months) 800,000 4,815 24,500 1,807,172* 982,672*
* Including a relocation allowance of €177,857.
144 Registration Document Renault 2007
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