Shareholders & Investors

The Remunerations Committee makes proposals to the Board of Directors concerning senior management's remuneration, i.e. Bruno Lafont, Chairman and CEO. This remuneration is comprised of a fixed portion and a variable portion.

On February 18, 2010, based on the Remunerations Committee's recommendations, the Board of Directors reviewed and decided on the following compensation:

• The fixed annual compensation is set at €950.000.
• The variable portion is set at €1.016.100, corresponding to 70,5% of Bruno Lafont's maximum performance-related pay.

For 2008, the financial criteria used to determine performance-related pay were:

• The increase in earnings per share, the free cash flow, the increase in economic value-added, which reflects the return on capital employed, the relative return on investment of Lafarge by comparison with its competitors and the cost savings program Excellence 2008.
• The portion based on individual performance is determined by reference to the personal targets set at the beginning of the year with respect to the major tasks to be undertaken.

The Board of Directors, with Bruno Lafont not attending this discussion, decided the percentage of performance-related pay due to him to 64 % of his performance-related portion.

If, until his employment agreement is terminated, Bruno Lafont were once again to receive the benefits of his employment agreement after his term of office as CEO, in the event of dismissal (for any reason other than serious misconduct or gross negligence), he would receive contractual severance compensation, the conditions of which have been reviewed by the Board in order to take into account the Afep-Medef's recommendations on the subject.

Such severance compensation would therefore be due only insofar as all terms have been fulfilled:

• The 1st condition is the event giving rise to the right to severance compensation.
• The 2nd condition is performance-based.

Detailled information on this benefit and the corresponding authorisations from the Board of Directors can be found on pages 111-113 of the 2008 Annual report (Document de référence), available on this website and on the A.M.F.’s website.