Management compensation < Corporate governance < Shareholders & Investors: Lafarge

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Corporate governance

Management compensation

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The Lafarge Remunerations Committee proposes management and directors 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

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 19, 2013, based on the Remunerations Committee's recommendations, the Board of Directors reviewed and decided on the following compensation:

The 2013 fixed annual compensation is set at €975,000.
The percentage of the 2012 performance-related pay due to Bruno Lafont in 2013 is set at €1,168,000.
Taking into account the Group's exceptional performance and achievements in 2012, the Board decided to grant an exceptional bonus of €800,000.

Management compensation – Implementation of the Afep-Medef recommendations
	Decision to maintain Mr Bruno Lafont's employment contract (07/27/2011) (P.D.F - 50 Kb) Decisions relating to the recommendations - as of February 19, 2009 (P.D.F - 26 Kb)

Severance arrangement of the Chairman and CEO

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.

Detailed information on this benefit and the corresponding authorisations from the Board of Directors can be found on pages 93-98 of the 2012 Annual report (Document de référence), available on this website and on the A.M.F.’s website.