AFD - Universal Registration Document 2020
CORPORATE GOVERNANCE Remuneration policy and practices
3.2.2.4 Early termination of the employment contract Remuneration payments for early termination of an employment contract are defined in Heading Ǿ V of the Staff Regulations. In addition to the particular cases referred to in Articles Ǿ 25, 28 and 30-3, an employee may be dismissed: 1° for economic reasons; 2° on the grounds of professional incompetence; 3° as disciplinary action; 4° on the grounds of medical unfitness. In the event of dismissal for the following reasons, remuneration is calculated on the basis of an average monthly salary, which is defined as a twelfth of the remuneration over the previous 12 Ǿ months: 1° Dismissal for economic reasons: Remuneration 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, remuneration 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 remuneration 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 remuneration 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 remuneration 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 remuneration. 2° Dismissal on the grounds of professional incompetence: Remuneration for dismissal paid to an employee at the end of the notice period is set by the Chief Executive Officer. However, this remuneration 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 remuneration 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 remuneration for dismissal.
4° Dismissal on the grounds of medical un fi tness: Remuneration 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 remuneration payable in the event of dismissal for economic reasons and, as a minimum, equal to the legal remuneration provided by the French Labour Code in this event. 3.2.3 Information about remuneration 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 remuneration 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 including: 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 remuneration of any kind paid during the 2020 financial year to all people falling within these categories (69 positions and 78 Ǿ employees) amounted to €7,967,558. Furthermore, the total remuneration paid to executive officers (Chief Executive Officer, Chief Operating Officer and Deputy Chief Executive Officer), the Risks Executive Officer, the Head of Compliance and the Head of Permanent Control amounted to €911,155 in respect of 2020 (for the incumbent individuals as at 31 Ǿ December). These amounts are the total remuneration amounts of any kind paid during the 2020 financial year to all persons within these categories.
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2020 UNIVERSAL REGISTRATION DOCUMENT
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