The variable remuneration for 2021 will be calculated based on four criteria as shown below, similar to the criteria used for 2020.
Variable remuneration criteria (all at Group level)
Net Sales, in value
Normalized Income fromOperations, in value
(Adjusted EBIT) (1) Working Capital (2)
30% 30% In 2021, Gonzalve Bich’s objectives are set around several elements of equal importance, such as implementation of Horizon strategy, growth initiatives, ESG criteria (including Diversity & Inclusion and environmental targets), and OPEX reduction. Each objective is based on quantitative (cost optimization, gender diversity…) and / or qualitative (Horizon action plan, succession planning…) achievements.
TOTAL 100% 100% Starting 2021, the Normalized Income from Operations is renamed Adjusted EBIT. (1) Working capital expressed in number of days of the Cash Conversion Cycle starting 2021: Days Sales Outstanding + Days Inventory Outstanding – Days Payable Outstanding. (2)
The financial objectives are based on the operating plan recommended by the Audit Committee and approved by the Board of Directors, at budgeted FX rates. Each of the financial criteria is assessed separately. Targets are equivalent to the guidance communicated externally, when relevant.
Payments are strongly aligned with business results. For each financial objective: a minimum threshold is established to trigger the payment of the ● part of the variable compensation relating to the KPI. For example, the minimum level can be set at the level reached during the previous fiscal year; a target level is established, on the basis of the budget ● validated by the Board of Directors, triggering a payment of 100%; the payment linked to each criterion is capped at 150% of the ● target value, corresponding to an expected level of over-performance; between each milestone, the payout is calculated by linear ● interpolation.
CALCULATION RULES OF THE PAYOUT OF THE VARIABLE REMUNERATION
At minimum threshold
At maximum expected level
Above maximum expected level
The assessment of individual objectives is performed globally by the Board of Directors, on the recommendation of the Nominations, Governance, and CSR Committee. The assessment considers the overall achievements of the year and results in a payout aligned to a stringent step-by-step scale (0%; 30%; 60%; 100%; 135%; 150% payout), as for all other BIC teammembers.
• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •