Financial Review - Bouygues

At end-2004, Group corporate savingsfunds were Bouygues' secondlargest shareholder with 12% of thecapital and 16% of the voting rights.25,000 employees (excluding Saur)belong to the funds. Martin Bouyguescreated a corporate savings plan forinvesting in Bouygues shares in 1990200320041,2791,36884Personnel costs: +5% (excl. Saur, in €m)821,9041,997with the aim of giving employees astake in the Group's growth. The plan,to which the company made matchingcontributions, was a great success.The original formula has been steadilyimproved over the years, giving particularencouragement to small payinsin order to increase the number ofinvestors. Capital increases reservedfor Group employees have furtherstrengthened the position of employeeshareholders.With the aim of giving employees aneven greater interest in the corporatesavings plan, Martin Bouygues decidedto substantially increase theceilings for matching contributionsfrom 1 January 2005. The companynow makes a matching contributionequal to 100% of employees'voluntary payments up to €1,920 ayear and 50% after that amount up to€3,840 a year, compared with the previousceilings of €1,560 and €3,120.3643793854064,092Bouygues Bouygues Colas TF1 Bouygues GroupConstruction Immobilier Telecom4,305The Bouygues group runs severalprofit-sharing schemes.Direct profit-sharingMany profit-sharing agreements existin the construction companies(Bouygues Construction, Colas andBouygues Immobilier) and at TF1. Theresults vary according to the companyand the profits. It is not unusual forprofit-sharing to represent 1.5 months'salary for the lowest paid.Profit-based incentivesProfit-based incentive schemes havebeen introduced at Bouygues SA andBouygues Telecom, since direct profitsharingis not possible for legal reasons.Methods of remuneration aredesigned to favour the lowest paid.Bouygues Immobilier has an incentivescheme as well as a profit-sharingscheme, which gives 65% of itsemployees one month's salary (upto a ceiling of €3,000) in addition toone month's salary under the profitsharingscheme.Performance-related payThis element of an employee's salaryvaries according to the company'sresults and is thus a way of redistributingprofits. Several thousandemployees, mostly managerial andtechnical/administrative staff, benefitfrom such arrangements. However,site workers in the construction businessesare not excluded, since theyoften receive a project completionbonus, and sometimes an annualbonus.3913%Average age (France): 4041 41Bouygues Bouygues Colas TF1 Bouygues GroupConstruction ImmobilierTelecomAverage length of service (France): 11 years11 11Bouygues Bouygues Colas TF1 Bouygues GroupConstruction ImmobilierTelecom50%12Proportion of women (France): 18%8%37948%32553%401118%Bouygues Bouygues Colas TF1 Bouygues GroupConstruction ImmobilierTelecom44