The Lafarge Remunerations Committee proposes management compensation corresponding to developments in the market. The Group systematically informs shareholders of the criteria used to set the compensation of corporate officers.
Breakdown of compensation |
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The Remunerations Committee makes proposals to the Board of Directors concerning senior management's remuneration. This remuneration is comprised of a fixed portion and a variable portion.
The variable portion is set according to the Group's financial results and individual performance criteria. It corresponds to a percentage of the fixed portion which can reach a maximum of:
The Board of Directors may increase the performance related pay up to 20% if the targets are exceeded by 50% to acknowledge siginificant achievements. |
Senior managementWhat is the senior management? At Lafarge, the senior management is composed of Bruno Lafont (C.E.O. then Chairman and C.E.O. from May 3, 2007), Michel Rose (Chief Operating Officer) and Bertrand Collomb (Chairman until May 3, 2007). |
Performance and payments |
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The performance of the senior management was judged to be excellent for 2007: performance even exceeded by far all the objectives that were set at the begining of the year.
The Board of Directors, with Bruno Lafont not attending the discussion, has attributed:
Senior management compensation (P.D.F - 136 Kb)
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Severance Arrangement of the Chairman and Chief Executive Officer |
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In accordance with articles L225-42-1 and L225-38 of the Code of commerce, the Board of Directors authorised on December 16, 2005 the benefit of a severance pay in the Chairman and Chief Executive Officer’s employment contract (suspended since January 1, 2006) in the event of termination of his employment or cancellation of his current position and introduced a performance condition linked to this severance pay on March 26, 2008.
Detailled information on this benefit and the corresponding authorisations from the Board of Directors can be found on page 89 of the 2007 Annual report (Document de référence), available on this website and on the A.M.F.’s website. |
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Last update on 05/21/2008
