AFD - 2019 Universal registration document

CORPORATE GOVERNANCE Compensation policy and practices

3.2.3 Information about compensation for executive of fi cers and individuals whose professional activities have a signi fi cant impact on the company’s risk pro fi le 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”. At 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 management committee, Notably: P deputies to the Executive Directors and to the General Secretary, P departmental Directors, 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) and CCC (Crises and Conflicts) Divisions, and the manager of the CLS (Social Ties) unit; P and employee representatives on the Board of Directors. The total amount of compensation of any kind paid during the 2019 financial year to all people falling within these categories (65 positions and 70 Ǿ employees) amounted to €7,264,175. Furthermore, the total compensation paid to executive officers (Chief Executive Officer, Deputy Chief Executive Officer and Associate Chief Executive Officer), the Risks Executive Officer, the Head of Compliance and the Head of Permanent Control amounted to €870,857 in respect of 2019 (for the incumbent individuals as at 31 Ǿ December). These amounts are the total compensation amounts of any kind paid during the 2019 financial year to all persons within these categories.

is defined as a twelfth of the compensation over the previous 12 Ǿ months: 1° Dismissal for economic reasons: Compensation for dismissal paid to an employee at the end of the notice period is equal to one and a half months of this average monthly salary per year of service up to the sixth year inclusive, 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 relating 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 relating 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, or more than 18 Ǿ 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 as disciplinary action: The amount of compensation potentially awarded to an employee is determined by the Chief Executive Officer when giving 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 un fi tness: Compensation for dismissal paid to an employee pursuant to the procedure set forth in Article Ǿ 25 of the Staff Regulations is equal to half the compensation payable 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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UNIVERSAL REGISTRATION DOCUMENT 2019