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CORPORATE GOVERNANCE AND INTERNAL CONTROL
2.4 Compensation of executive corporate officers
2
88
Registration Document 2016 — Capgemini
Amount or
value subject
accounting
to vote
Presentation
quantitative objectives and at 100% for the qualitative ones for an overall total of 120%.
standpoint accounting for 10% overall, that covers i) the successful European transformation plan, ii) the
higher than 20%, ii) not reached and iii) exceeded. In addition, the Board considered from a qualitative
global mindset through the Power of One initiatives and set the qualitative part at 100%.
The Board
launch of a reinforced Digital organization driving high growth in this domain and iii) the drive toward a
considered that the objectives set for this category have been realized at 133% for the
For the third
category (Industrialization and account centricity-25%)
, the Board took into
Digital offerings, ii) a corresponding ambitious contribution margin trend and iii) the growth of Group &
consideration three quantitative indicators each with a 5% weight i) the revenue growth of Cloud and
achievements have been considered respectively i) exceeded with a growth of Cloud and Digital offerings
countries strategic accounts to be higher than the Group revenue growth. For these three indicators the
and iii) the deployment of a revamped leadership model.
The Board considered that the HR
boosting mobility, ii) the study made with a top notch company to evaluate a set of Group top executives
transformation objectives have been reached at 112%.
For these indicators the achievements have been respectively i) achieved for the refreshment ratio and
of the VP population including external hires and ii) an acceleration of mobility within the Group in 2016.
sectors and ii) an increase of the mobility with 26% more moves than targeted within the VP population. In
exceeded with a number of recruited VPs from Cloud & Digital domains aligned to our growth in these
implemented to accelerate cross unit mobility and succession plans looking at i) the deployment across all
addition, the Board evaluated from a qualitative standpoint accounting for 10% overall, the HR strategy
units of the Strategic Talent Reviews aimed at covering successions plans, improving gender diversity and
measures counting for 15% around i) the hiring and development of Senior Executives with a refreshment
For the fourth
category (HR transformation-25%)
, the Board considered as well two set of quantitative
The Board approved a rounded weighted performance of 118% as per the table below:
Target
Proposal
Objective type
Computed Qualitative Computed Qualitative
IGATE integration
20%
10% 30.1%
12%
New strategic development
20%
18%
Strategic agenda
15%
10%
20%
10%
HR transformation
15%
10% 18.2%
10%
Total
50% 50% 68.3% 50%
Target
100% Proposed
118%
leading to a
V2 calculation of €571,120.
Accordingly, a
variable compensation of
€1,075,855
was approved by the Board for 2016
, i.e. 74.1%
the theoretical compensation and may be summarized as follows:
compensation
. Total fixed and variable compensation for 2016 is therefore
€2,527,855
i.e.
104.5% of
of his fixed compensation for the same year and 111.1% of the theoretical variable
2016 Variable compensation calculation for Mr. Paul Hermelin
V1: quantitative part based on budgeted financial targets
Indicators
Weight achievement
% of
Weighted
Total Revenue
30% 98.4% 29.5%
Operational Margin %
30% 95.0% 28.5%
Net results before tax
20% 95.1% 19.0%
Organic Free cash Flow
20% 120.2% 24.0%
Total weighted R/B before flex
101.1%
Total weighted after 75/125 flex (4*weighted R/B-3)
104.3%
Variable V1 on target
484,000
Computed V1
504,735