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Group¡¯s business units have receivedvariable compensation consisting of abonus based on achieving annual targetsplus stock options that can be exercisedover the long term. Under the newplan, Group Performance Units (GPUs)will ´úдӢ¹úÁôѧÂÛÎÄreplace a portion of the stock options,providing medium-term compensationlinked to achieving the multi-year Grouptargets for sales growth, operating marginand net earnings per share announcedto financial markets.
Executive compensation at Groupe
DANONE includes a fixed portion and a
variable portion. Based on business and
individual targets, the variable portion
represents between 40% and 60% of
total compensation.
For Executive Committee members, variable
compensation is based on quantitative
business targets as well as a qualitative
assessment of strategy during the year.
For the Chairman/CEO and for the Vice-
Chairman/Chief Operating Officer, the
quantitative component is based on
Group targets for sales, operating margin,
free cashflow and net earnings per share
as communicated to financial markets. For
Executive Committee members in charge
of a business line, the quantitative component
is based on targets for sales,
operating income, free cashflow, and
operating margin as defined in the
budget for the business line. For the
remaining members of the Executive
Committee, the quantitative component
is based on targets for operating
income, net earnings per share and
operating costs as defined in the
Group¡¯s budget.
In fiscal 2005, direct and indirect compensation
paid to the members of the
Board of Directors and Executive Committee¡ª
20 people in all¡ªtotaled €11.2
million. Of that, €10.9 million went to
the members of the Executive Committee
for performance of their duties,
including €5.4 million for the variable
portion. Supplemental retirement and
other benefits paid by the Group to
the same individuals in 2005 totaled
€0.6 million.
In 2005, the following amounts were paid
to the four members of the Executive
Committee who also sit on the Board of
Directors:
Franck Riboud, Chairman and CEO,
€2,485,540;
Jacques Vincent, Vice-Chairman and
Chief Operating Officer, €1,544,620;
Emmanuel Faber, Executive Vice-President
Asia-Pacific, €966,058;
Bernard Hours, Executive Vice-President,
Fresh Dairy Products, €941,408.
RETIREMENT LIABILITY All Group executives
who were enrolled in a retirement
plan under French law at
December 31, 2003 are covered by a
defined-benefit retirement program. Participants
who are still with the Group at
retirement will receive a pension based
on seniority and final salary levels. At
December 31, 2005, total retirement
liability for Group management was
€39 million.
The Board of Directors met six
times in 2005. Meetings averaged
three hours in length, with
attendance at 92%, up from
85% in 2004. Ongoing business regularly
handled by the Board included market
trends, the Group¡¯s finances, cash position,
share buybacks and cancellations,
and financial statements. In 2005, the
Board also analyzed and debated significant
acquisitions and divestments as
negotiations progressed, focusing in
particular on the resales of the Group¡¯s
Sauces business¡ªHP Foods in the United
Kingdom, Lea & Perrins in the United
States, and Amoy in Asia¡ªand on com±¾ÂÛÎÄÓÉÓ¢ÓïÂÛÎÄÍøÌṩÕûÀí£¬ÌṩÂÛÎÄ´úд£¬Ó¢ÓïÂÛÎÄ´úд£¬´úдÂÛÎÄ£¬´úдӢÓïÂÛÎÄ£¬´úдÁôѧÉúÂÛÎÄ£¬´úдӢÎÄÂÛÎÄ£¬ÁôѧÉúÂÛÎÄ´úдÏà¹ØºËÐĹؼü´ÊËÑË÷¡£