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CAPGEMINI: PEOPLE, CORPORATE SOCIAL RESPONSIBILITY (CSR) AND BUSINESS ETHICS
3.2 People and Talent Management
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Registration Document 2016 — Capgemini
Rewarding and incentivizing our People
3.2.4
conditions and regulations. This policy aims to:
applied in a decentralized way and tailored to local job market
The Group’s remuneration policy is based on shared principles,
attract and retain talent;
reward individual and collective performance with a
◗
remuneration model that is motivating yet flexible;
targets.
be fair and consistent with the Group’s financial and operational
◗
situations in the best possible way.
flexibility, enabling them to reconcile their financial and personal
of their remuneration package from a predefined package and in
Where local rules permit, employees can select the components
employee contributions. This provides employees with additional
some countries can elect to enhance benefits through additional
respect legal requirements in all jurisdictions in which we operate.
Employee benefits are provided that are market competitive and
96% of the population is covered by Medical Insurance and 97%
bundled with an Accidental Death and Dismemberment insurance.
of the population has a life insurance cover, which is often
progressively better align schemes to favor mobility and ensure
managed, are subject to Group approval with the intent to
consistency and fairness.
reviewed and authorized at the Group level for both fixed salaries
Vice-President and senior executive compensation schemes are
schemes for other employees, which are locally designed and
and variable components. The principles of compensation
always exceed or are equal to the legal minimum wage in force in
The minimum salaries applied by the Group in each country
significant proportion. Salary increases guidelines are also
the country concerned, and are sometimes higher by a very
reviewed and approved at Group level.
Profit-sharing is available to employees pursuant to the local
regulations applicable in the country.
Document) is subject to regular analysis as compensation costs
to the consolidated financial statements of the Registration
The evolution of compensation (which can be found in the Note 6
evaluate the impact of staff movements (recruits, leavers,
of the average compensation cost across SBUs/countries to
promotions, transfers, etc.) on the evolution of this key indicator.
represent 61% of the Group revenue. A quarterly analysis is made
The Compensation Committee of the Cap Gemini S.A. Board of
Company’s executive corporate officers and to review
Directors is in charge of supervising compensation of the
particular equity based incentives subject to Board approval.
compensation policies related to the Group senior managers, in
Employee access to stock holding
Capgemini launched its first international employee stock
very successful, with more than 14,000 employees applying for
ownership plan, covering 19 countries, in 2009. This plan was
2014 and was again a success with close to 17,000 subscribers
December 2014, a new international plan has been launched in
joining this new plan. As a result of these two active plans our
international plan was launched in 2012 covering all employees of
shares. After authorization was granted by shareholders, a new
12,000 employees subscribing. As the 2009 plan was ending in
the 19 countries, which was again very successful, with
shareholders with close to 5.3% of the share capital.
employees, as a whole, are amongst the Group’s main
product (the BSAAR) in 2009. This product was made available to
Lastly, Capgemini launched a share price performance-related
long-term investment in the Company (from 4 to 7 years) while
represented an opportunity for managers who wanted to make a
accordance with a valuation carried out by an external expert) and
Group managers at the price of €3.22 (at fair value and in
the French Financial Markets Authority (AMF). BSAARs
was accompanied by an information memorandum approved by
expired in July 2016.
being fully exposed to fluctuations in the share price. This product
Allocation of share-based incentive schemes
reward those who have been acknowledged for specific initiatives
allocations are made selectively with the aim of rewarding
a regular basis in line with its corporate governance rules. These
contributions to company sales, production, innovation or to
employee loyalty, namely for those who have made exceptional
reward and do not form part of the general remuneration policy.
Group may be selected to receive them. They are an exceptional
or who are seen as transformation agents. Any employee in the
(previously stock options and performance shares since 2009) on
Cap Gemini S.A. has allocated share-based instruments
The Board of Directors allocated a certain number of stock
3,918 beneficiaries under the performance shares plans. The
options to 2,298 beneficiaries under the sixth plan and to
Shareholders’ Meeting, provides a detailed yearly breakdown of
management report, presented at each Cap Gemini S.A.
the performance share allocations.
Concurrently, stock options granted to executive corporate
Regarding performance shares, resolutions set a limit of 5% or
and no options are exercisable as all plans are now closed.
allocated represented 3% of the total grants of all performance
10% to be allocated to Directors and the volume effectively
officers form a very low percentage of the total options distributed.
options allocated was awarded to executive corporate officers,
Under the fifth and sixth plans, 1.1% of the total number of
not allocated on an automatic and/or annual basis.
share plans since 2009. Moreover, share-based instruments are
Detailed information regarding performance shares allocated by
(non-directors), the options exercised by the latter, and details of
Cap Gemini S.A. to directors and to the ten main beneficiaries
Document.
these plans are provided on section 2.4.5 of this Registration
representatives, the Board decided to pay an incentive through
In addition, following a negotiation with French employee
compulsory holding period of another two years in two occasions
shares subject to a presence condition of two years and with a
sharing bonus” implemented in 2011. As a result, more than
(2012 and 2014), instead of paying a bonus in cash for the “profit
16,000 employees became shareholders in July 2014 and again
became shareholders in October 2016.
more than 15,200 employees out of the initial 20,000 beneficiaries