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plan defined by the Managing Board. As every year, the Compensation Committee
finalized the recommended compensation for the Managing Board and submitted
it to the Supervisory Board for approval.
The Supervisory Board examined the Managing Board’s report and has no matters
to bring to your attention concerning it. As regards the resolutions submitted for
your approval, the Board has the following comments:
The proposed dividend amounts to €1.35 per share, an increase of 17.4% from
the previous year. It reflects the 9.8% growth in operating margin. Payout amounts
to 20.7% of consolidated net income, versus 17.6% last year.
Thierry Peugeot was appointed to the Supervisory Board to replace Pierre Peugeot
for the remainder of his term, which runs until the Annual Stockholders’ Meeting
to be called in 2004 to approve the accounts for the year ended December 31,
2003. You are invited to ratify this appointment.
The financial resolutions concern the renewal of authorizations that have expired
and that have been updated with only minor changes. The authorizations to buy
back shares and to reduce issued capital through the cancellation of shares renew
the same authorizations as previously. Their use will depend on market opportunities
and the net financial position of the manufacturing and sales companies.
Concerning the future, the Board shares the Managing Board’s confidence in the Group’s
ability to drive further growth in sales of the two marques and in the Group’s earnings.
In the very short term, the events in the Middle East could have an impact on demand
but no one can measure how much or for how long. The Supervisory Board nevertheless
believes that PSA Peugeot Citroën has the products and resources to weather a
temporary downturn in the economy.
PSA PEUGEOT CITROËN - SUPERVISORY BOARD REPORT 7