The Board may amend these performance conditions either in the event of a strategic decision that changes the scope of the Group’s business activities or under exceptional circumstances.
It should be noted that Mr Huillard has not entered into an employment contract with the Group. The condition of continued service is therefore evaluated with regard to the appointments he holds at VINCI SA, namely as Chairman, Chief Executive Officer and Director, the terms of office of which are limited by law and the Articles of Association.
The condition of continued service applicable to Mr Huillard with respect to share awards that have not vested at the time of evaluation is defined as follows:
| Event occurring before the vesting date | Impact on awards not yet vested under each plan |
|---|---|
| Resignation from positions as Chairman, Chief Executive Officer and Director | Resignation from positions as Chairman, Chief Executive Officer and Director Impact on awards not yet vested under each plan Complete forfeiture of non-vested awards |
| Event occurring before the vesting date Termination as Chief Executive Officer due to resignation connected with a succession plan, age limit or retirement |
Impact on awards not yet vested under each plan Partial eligibility maintained, on a pro rata basis, over the period from the grant date of the award to the date of termination |
| Death or disability | Death or disability Impact on awards not yet vested under each plan Eligibility maintained, application of specific plan provisions in case of death or disability |
| Event occurring before the vesting date Dismissal as Chief Executive Officer by decision of the Board |
Impact on awards not yet vested under each plan Partial eligibility maintained, on a pro rata basis, over the period from the grant date of the award to the date of termination |
| Non-renewal of term of office as Chief Executive Officer at its expiry in 2022 | Non-renewal of term of office as Chief Executive Officer at its expiry in 2022 Impact on awards not yet vested under each plan Eligibility maintained |
The remuneration policy for executive company officers includes eligibility for the pension and insurance plans set up by VINCI for its employees.
A supplementary defined benefit pension plan (known in France as an “Article 39” plan) was set up in 2010 by VINCI for senior executives of VINCI SA and its subsidiary VINCI Management, which is described in paragraph 4.2.3, page 150. This plan was closed to new members in 2019 pursuant to Order 2019-697 of 3 July 2019, but its beneficiaries are not required to forfeit any benefits obtained at the closing date.
Given that the Board has officially confirmed his senior executive status, Mr Huillard is eligible to participate in the defined contribution pension plans and insurance plans set up by VINCI for its employees.
He is also eligible to participate in the aforementioned supplementary defined benefit pension plan, as resolutions to this effect were passed at the Shareholders’ General Meetings of 6 May 2010, 15 April 2014 and 17 April 2018. Since 2019, Mr Huillard has been covered by the upper limit on benefits under this pension plan, which is eight times the annual French social security ceiling, and he cannot receive any additional benefits.
Under this plan, at the settlement of his benefits provided by the general social security plan, Mr Huillard will receive a supplementary pension, the amount of which is capped at eight times the annual French social security ceiling (i.e. €329,088 at 1 January 2022).
It should be noted that the benefits under these plans were taken into account in determining Mr Huillard’s overall remuneration.
The Board reserves the right, as necessary, to put in place a substitute plan in the event that a new executive company officer takes up his or her position without being eligible for coverage under the aforementioned plan.
In the Eleventh resolution passed at the Shareholders’ General Meeting of 17 April 2018, shareholders approved a commitment by the Company to provide Mr Huillard with severance pay in the event that the Board simultaneously terminates both of his appointments as Chairman of the Board and Chief Executive Officer prior to the normal expiry of his term of office as Director in 2022, except in the case of gross negligence or retirement. This commitment will expire at the close of the 2022 Shareholders’ General Meeting and will not be renewed.
Executive company officers have the use of a company car.
On the basis of the above structure, this remuneration policy has the following features:
| It is balanced. |
It achieves a balance between:
|
| It is capped. |
Each of its elements has an upper limit:
|
|---|---|
| It is subject, for the most part, to demanding performance conditions. | Future performance is assessed in relation to past performance, and therefore on a concrete basis. |
| It is in the interests of the Company. | Its amount is moderate, given the VINCI Group’s size and complexity. The performance conditions selected by the Board encourage Executive Management to consider not only short-term, but also long-term, and even very long-term, objectives. |
| It helps ensure the continuity of the Company and is in keeping with its business strategy. | The VINCI Group has a business model based on a complementary set of activities conducted over both short and long time frames. These businesses can only prosper over the long term if they are geographically diversified and respect stakeholders and the environment where they are pursued. The remuneration system aptly reflects these imperatives. |
