2010Annual Report - Schneider Electric CZ, s.r.o.
2010Annual Report - Schneider Electric CZ, s.r.o.
2010Annual Report - Schneider Electric CZ, s.r.o.
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3 CORPORATE GOVERNANCE<br />
MANAGEMENT INTERESTS AND COMPENSATION<br />
122<br />
Pension benefits**<br />
French members of the Management Board and Supervisory<br />
Board are covered by the Group’s top-hat pension plan for senior<br />
executives, (Article 39 defi ned benefi ts) and, with the exception<br />
of Jean-Pascal Tricoire of the top hat pension plan for Senior<br />
Management (defi ned contributions) . The benefi ts from article 83<br />
(defi ned contributions) are deducted from the article 39 benefi ts<br />
(defi ned benefi ts).<br />
Article 39 defi ned benefi ts plan foresee a pension of a maximum<br />
amount equal to 60%; that is, 50% plus 1% per year as of the<br />
sixth year of the acquisition of the senior manager status, of the<br />
difference between the average reference salary (i.e. the average of<br />
the base salary and of the variable portion of the three calendar years<br />
prior to departure) and the total sum for pensions granted under<br />
Compensation of the Supervisory Board members<br />
Chairman of the Supervisory Board<br />
Based on the recommendation of the Remunerations, Appointments<br />
and Human Resources Committee, at its meeting on April 22, 2010,<br />
the Supervisory Board decided to set the annual compensation of<br />
its Chairman at EUR500,000 not including the attendance fees paid<br />
to Supervisory Board members.<br />
The Chairman of the Supervisory Board does not receive any stock<br />
options or stock grants and will not be entitled to any payment on<br />
leaving the Board.<br />
In 2010, Henri Lachmann was paid:<br />
• in his capacity as Chairman of the Supervisory Board:<br />
EUR500,000;<br />
• in attendance fees: EUR65,000;<br />
• under the Company’s pension plan for senior executives:<br />
EUR553,296.<br />
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />
external plans (CNAV, ARRCO, AGIRC and other pensions, where<br />
necessary). The annuity thus defi ned, plus the annuity that results,<br />
where necessary, from the article 83 defi ned contribution plan,<br />
cannot exceed 25% of the average reference salary. The defi ned<br />
benefi ts plan includes, subject to conditions, a right to 60% for the<br />
surviving spouse. Under the contingency section, an annuity for the<br />
spouse is paid if the executive passes away before the retirement<br />
age. In the event of disability occurring in the course of business,<br />
the executive has a right to a pension supplement as of his or her<br />
sixtieth birthday.<br />
Non-French members are covered by funded pension plans in line<br />
with local practice in their respective countries.<br />
Mr Lachmann has a Company car and may also use the chauffeurdriven<br />
Company cars made available to Group Senior Management.<br />
This benefi t in kind can be estimated for the 2010 fi nancial year at<br />
EUR5,090.<br />
Supervisory Board members<br />
The Annual Shareholders’ Meeting set total attendance fees at<br />
EUR800,000. The Supervisory Board has decided to allocate these<br />
fees as follows:<br />
• Board members and non-voting members resident in France<br />
receive a basic fee of EUR15,000 and members resident outside<br />
France receive double this amount;<br />
• Board members receive a fee of EUR5,000 for each meeting they<br />
attend;<br />
• members who sit on the Committees of the Board receive a fi xed<br />
fee of EUR15,000, with the Audit Committee Chairman receiving<br />
double this amount.