| Type of performance indicator | Indicator | Relevance of indicators and how they are used | |
|---|---|---|---|
ALL-ROUND PERFORMANCE |
ALL-ROUND PERFORMANCEType of performance indicator Economic and financial performance indicators |
ALL-ROUND PERFORMANCEIndicator Earnings per share Recurring operating income Operating cash flow |
ALL-ROUND PERFORMANCERelevance of indicators and how they are used These three indicators offer insight into the quality of the Group’s economic and financial management from different complementary angles. The Group’s economic and financial performance is evaluated using the indicators shown opposite, measured at 31 December each year. The method consists in determining and recording the movement in each of these indicators between 31 December in the prior year and 31 December in the year just ended. A bonus is associated with each performance indicator, the amount of which depends on the percentage change recorded in the corresponding indicator. The bonus amount has a lower limit of €0 (for a negative change of 10% or more) and an upper limit of one-third of the amount corresponding to the upper limit for the overall bonus tied to the economic and financial performance indicators (for a positive change of 10% or more), in accordance with a remuneration schedule set by the Board. In the event that a performance improvement in excess of 10% is noted for one or more indicators, an outperformance bonus limited to 20% for each indicator will be awarded, with the understanding that the total of the three bonuses may not be greater than €1,248,000. That amount represents 60% of the upper limit for the short-term variable component. |
Managerial performance indicators |
Type of performance indicator Proportion of the Group’s business conducted outside France |
Indicator This indicator aims to track the level of geographical diversification of the Group’s business activities.
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Management and dialogue with stakeholders |
Type of performance indicator This indicator aims to allow the Board to set diverse ESG priorities, depending on the issues it feels merit particular attention. |
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ESG performance indicators |
Type of performance indicator Workforce, society and safety |
Indicator The Board considers the following indicators as falling within this category:
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Environment |
Type of performance indicator With regard to environmental issues, the Board has selected the following indicators:
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Governance and compliance |
Type of performance indicator This indicator aims to track the quality of interactions with the Appointments and Corporate Governance Committee and with the Lead Director in the preparation and implementation of succession plans. |
At the start of a given year, the Board sets goals, applying a weighting coefficient to those considered as priorities. The Board reserves the option to adjust these indicators when such a move is, in its view, justified by the circumstances, provided that the reasons for these changes are outlined at the Shareholders’ General Meeting in which shareholders are asked to vote on resolutions relating to the short- and long-term variable components of remuneration for the individual concerned. The Board reaches its decisions in conjunction with its examination of the financial statements for the prior year, after reviewing the recommendations of the Remuneration Committee and after having given Board members the opportunity to pursue discussions without any executive company officers being present.
The remuneration of executive company officers includes a long-term portion intended to align the interests of the beneficiaries with those of shareholders and investors, taking a multi-year perspective.
To this end, the Board carries out an analysis each year to determine the appropriate structure of the award for this component. It may be comprised of physical or synthetic VINCI shares and may be granted either under a plan set up in accordance with ordinary law or under any other plan permitted by law. Since 2014, all awards to VINCI SA’s executive company officers have been granted in accordance with ordinary law and satisfied using existing VINCI shares (and are therefore not pursuant to Article L.225-197-1 of the French Commercial Code).
The fair value measurement for these awards (under IFRS 2) is capped, at the time they are decided by the Board, at 100% of the upper limit of short-term fixed and variable remuneration. Vesting of these awards is subject to:
For plans introduced from 2022, the performance conditions will be as follows:
| Type of criteria involved | Description | Weighting |
|---|---|---|
| Economic criterion | Economic criterion Description Value creation Measurement of value creation on the basis of changes in the ROCE/WACC ratio (“R”), as described in paragraph 5.2.2, page 153 |
Economic criterion Weighting 50% |
| Financial criteria | Financial criteria Description Debt management Measurement of the Group’s ability to generate cash flows in line with its level of debt, with reference to the FFO (funds from operations)/net debt ratio (“R”) |
Financial criteria Weighting 12.5% |
Description Stock market performance Comparison of VINCI’s total shareholder return (TSR) with that of a composite industry index comprised of companies representing the full range of VINCI’s business activities |
Weighting 12.5% |
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| ESG criteria | ESG criteria Description Environment Determined on the basis of the Climate Change score received by VINCI from CDP for each of the three years of the vesting period |
ESG criteria Weighting 15% |
Description Safety Tracking of the Group’s safety performance, based on the frequency rate of workplace accidents with at least 24 hours of lost time per million hours worked (“F”) for VINCI employees worldwide |
Weighting 5% |
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Description Increasing the presence of women at senior management levels Tracking of the increase in the percentage of women hired or promoted to management positions across the Group, as recorded in Y+3 (“P”) |
Weighting 5% |
