AFD - 2018 Registration document

CORPORATE GOVERNANCE Compensation policy and practices

3.2.3 Information about compensation for executive officers and individuals whose professional activities have a significant impact on the company’s risk profile As previously stated, the compensation principles and changes described above are applicable to all AFD employees, including the Executive Committee and “individuals whose activities have a significant impact on the company’s risk profile”. In AFD, executive officers and individuals whose professional activities have a significant impact on the company’s risk profile belong to the following categories: P the Executive Committee (including Proparco’s Chief Executive Officer); P the Communications Department and French Global Environment Facility (FFEM) managers and the Director of the Office to the Chief Executive Officer (who are also members of the Management Committee (CODIR); P managers of the Board and Second Opinion secretariats; P the Deputy Heads of the DCO (Compliance), ROC (Permanent Control) and IGE (General Inspection) Departments; P managers of the CLI (Climate), CCC (Crises and Conflicts) Divisions, and the manager of the (Social Ties) unit;f P and employee representatives on the Board of Directors. The total amount of compensation of any kind paid during the 2018 financial year to all people falling within these categories (58 posts and 69 employees) amounted to €6,826,676. Furthermore, the total compensation of executive officers (Chief Executive Officer, Deputy Chief Executive Officer, Associate Chief Executive Officer), the Risks Executive Officer, the Head of Compliance and the Head of Permanent Control amounted to €751,000 for 2018 (for the incumbent individuals as at 31 December). This compensation corresponds to the gross fixed compensation paid by AFD which does not, morefover, pay any variable compensation other than the profit-sharing bonus which is calculated in an identical way for all employees. P Deputies to the Executive Directors; P Departmental Directors;

average monthly salary per year of service up to the sixth year inclusively, and to one and three-quarter months of this salary for every year of service beyond the sixth year. For employees whose services were performed partly in French Overseas Departments and Collectivities and/or abroad and partly in mainland France, or vice versa, compensation is calculated on a pro rata basis in relation to the time spent in each of these postings, according to the following terms and conditions: P the portion of the compensation related to their services in mainland France is calculated on the basis of one twelfth of their annual reference salary in mainland France; P the portion of the compensation related to their services performed in French Overseas Departments and Collectivities and/or abroad, is calculated on the basis of one twelfth of the annual salary allocated to an employee ranked on the same salary point in the last posting in French Overseas Departments and Collectivities and/or abroad. The amount of the dismissal compensation may not be less than three times the average monthly salary nor more than 18 times this salary. Only full months of service are taken into account to determine the dismissal compensation. 2° Dismissal on the grounds of professional incompetence: Compensation for dismissal paid to an employee at the end of the notice period is set by the Chief Executive Officer. However, this compensation may not be less than half of that provided in the event of dismissal for economic reasons. 3° Dismissal by way of disciplinary action: The amount of compensation potentially awarded to an employee is the result of a decision by the Chief Executive Officer when he gives notice of the penalty in accordance with legal provisions. Only serious or gross misconduct results in no compensation for dismissal. 4° Dismissal on the grounds of medical unfitness: Compensation for dismissal paid to an employee in the context of the procedure established in Article 25 of the Staff Regulations is equal to half of that provided in the event of dismissal for economic reasons and, as a minimum, equal to the legal compensation provided by the French Labour Code in this event.

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REGISTRATION DOCUMENT 2018