Groupe Renault - 2019 Universal Registration Document

02

INCLUSION RENAULT: A RESPONSIBLE COMPANY

the extent to which targets are achieved . P Analysis of these three components ensures that compensation is based on the individual’s contribution to the company, independent of any other factor. The variable part of the compensation of managers and executives is calculated according to the following principles: the higher the level of responsibility, the higher the percentage of P variable compensation; the higher the level of responsibility, the higher the percentage of P collective targets; payment of variable compensation is determined by achievement P of three targets at Group level. Three systems are applied: a Group system for executives in positions with the highest levels P of responsibility; a Regional system for management-level executives; P a Local system defined within each country for non-management P executives. The compensation of senior executives is discussed in section 3.2. Group profit-sharing Renault has an incentive scheme for employees in France that includes the redistribution of Group profits as well as bonus payments for contributions to site performance. 2019 FINANCIAL YEAR As with the previous agreement, the agreement signed for 2017-2019 has two parts: profit-sharing linked to the Group’s operating margin; P local incentive schemes based on site performance. P Over the past three years, profit-sharing and performance-related bonuses at Renault s.a.s. totaled the following amounts:

Performance appraisal a) The performance evaluation is based on three principles: team spirit, shared criteria and dialog, using the individual performance review. The job mastery is assessed according to specific criteria that are identical for all employees, including, technical know-how and the Renault Way principles. The assessment made by the employee’s manager is systematically supplemented with a collective evaluation, to ensure greater consistency and fairness within the Company. Furthermore, the evaluation is based on a discussion between manager and employee during the annual performance review. Since 2019, the employees are invited to make a self-evaluation in preparation to this meeting to enhance the discussion. The individual performance is an opportunity to look at the results of the past year, to set objectives for the year ahead, and to discuss the employee’s contribution to the Company’s performance. If results fall short of expectations, an improvement plan is implemented by the manager and employee to restore a dynamic to individual performance. Regular performance reviews throughout the year are highly recommended in order to ensure continuous professional development. Employee development b) People@Renault provides a way to share common policies and practices in employee development (white-collar) at Group level, such as reviewing training requests or defining criteria for selecting high-potential individuals, as well as the systematic implementation of development programs for those individuals, which include a career plan. People@Renault is also a tool which enables effective management of the succession plans for key positions in the Company. Employee compensation  EFPD1g  c) The compensation of white-collar staff is based on: the level of responsibility . Positions have been assessed P according to their level of responsibility, using to the Korn Ferry international methodology. This assessment makes it possible to draw up a complete internal mapping of positions across the various business lines and Regions, thereby ensuring greater transparency and global equality of career paths. Another advantage is that Renault can compare its pay scales with the market to better manage competitiveness and the attractiveness of the compensation policy. The fixed and variable compensation system is now determined on the basis of this job classification. This job assessment method has been introduced in 37 Group countries; job mastery , or the capacity to perform a role, defined with P precise and shared criteria to make assessment more objective and standardized within the Group; the extent to which the Renault Way program has been P followed , based on a team workshop or a defined target, to ensure that employees are on board with the Company’s main values and principles;

Aggregate amount: financial incentive + performance-related bonuses

Year (€ million)

2017 2018 2019

178.8 170.7 176.4

Employee stock ownership and savings d) In France, Renault operates a voluntary company savings plan open to all subsidiaries that are more than 50% owned. The plan consists of seven employee mutual funds (FCPE) invested in accordance with socially responsible investment (SRI) standards and endorsed by the Labor Union Employee Savings Committee (Comité Intersyndical de l’Épargne Salariale), and two FCPE funds invested in company stock (Renault share, ISIN code FR0000131906). The securities held in the SRI portfolios are selected on the basis of the issuer’s employment policies, working conditions, corporate governance, and compliance with environmental standards. Employees can make top-up payments into these seven savings funds and the Action Renault Fund throughout the year.

196 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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