Annual report 2006 - Dexia.com

HUMAN RESOURCES
INITIATING AND CASCADING
THE LEADERSHIP CULTURE
EMPLOYEE SHAREHOLDING PLAN:
A VERSATILE UNIFYING TOOL
MANAGEMENT REPORT
COMPTES CONSOLIDÉS
COMPTES SOCIAUX
In 2005, leadership development was placed high on the
management agenda. A leadership vision was drafted and
the divergence from current reality assessed.
In 2006, Dexia started to close the gap between vision and
reality by developing a leadership model and implementing it
through a “360° feedback“ process at top management level.
Additionally, Dexia has initiated work around the values and
the mission of the Group.
LEADERSHIP MODEL AND COMPETENCES
A leadership model determines which competences are expected
from leaders by describing those competences through specific
forms of behavior. The leadership model is the anchor point for
all management development initiatives and Human Resource
tools such as the “performance management“ process, the
“talent review“, the “360° feedback“ (see below), the “assessment
& development centers“ and training programs.
Five principal axes of corporate culture have been defined:
client, vision, team management, innovation and cross-entity
approach.
360° FEEDBACK PROCESS
The first step in the implementation of a leadership culture
consists in setting an example and applying a 360° feedback
assessment at Management Board and Executive Committee
level. The 360° feedback is aimed at providing an employee
with the opportunity to receive feedback on his/her leadership
behavior within the organization.
GROUP CULTURE
Dexia triggered a four-phase plan in order to create a real
Group culture.
The first level is top management. Indeed, it is essential that
the 360° feedback be applied to all members of the Management
Board and the Executive Committee.
The second level relates to all the real initiatives which illustrate
the change of direction such as for instance the setting
up of cross-entity competence centers.
The third level involves the development of the competences
necessary for the implementation of this new culture, within
the entire management population. This stage includes
putting the appropriate training programs in place.
To conclude, at a fourth and final level, the objective is to
suit these changes to the long term whether in recruitment,
assessment or differentiated compensation.
At the same time, in order to consolidate the unique and integrated
identity of the Group, considerable work was done on
giving a precise and assertive definition of the Group’s mission
and values, these elements being the visible bond of the
Group culture.
Since its creation, the percentage of capital held by members
of staff of Dexia has been one of the major unifying elements
throughout the Group. In fact, in 2000 when the first shareholding
plan was launched, the target set by the chairman of
the Board of Directors was that within five years 5% of the
capital should be held by members of staff.
That target was achieved in June 2005 with the proportion of
capital held by members of staff evolving between 4% and
5% depending upon previous plans reaching maturity.
With these results, Dexia is positioned in the Top 30 of the
“European Employee Shareholding“.
UNWINDING THE 2001 PLAN
In 2006 Dexia members of staff were able to unwind the 2001
shareholding plan. The plan had several innovative features:
• that year, for the first time, a classic offer and a leveraged
offer were put to all members of staff in every country in
which the Group had a presence;
• subscriptions to the different offers were for almost
EUR 170 million;
• 6 members of staff out of 10 took advantage of the plan.
When exit transactions were completed for the 2001 plan,
Dexia members of staff could see how attractive those plans
had been. Indeed the classic offer posted a return of more
than 70%, out-performing the classic BEL20, CAC 40 and
EuroStoxx 50 indices. Similarly, the leveraged offer gave a
return of more than 160% to those members of staff who
had chosen it.
NEW 2006 PLAN
As in previous years, there are two offers: classic and leveraged.
The latter takes three forms in 2006: the standard option, the
averaged option and the click option. The shares subscribed
under each of these offers are locked up for five years.
The classic offer
In the classic offer, the member of staff finances all of the
Dexia shares he or she wishes to acquire, with a maximum
discount of 20%.
The leveraged offer
In the leveraged offer, by virtue of a specific financial mechanism,
a member of staff who acquires a share (discounted by
20%) becomes the holder of 10 Dexia shares. At the end of the
five years, if the stock market price has increased, the member
of staff receives shares or cash to the amount of his or her
initial investment increased by a percentage of that increase
calculated on 10 shares. If on maturity the share price is lower
than the reference price (before the discount is applied), the
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Dexia / Annual Report 2006