CA Indosuez (Switzerland) SA - 2018 Annual Report

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CA Indosuez (Switzerland) SA

2.4.2. Compensation and profit sharing programmes for members of

To implement its compensation policy, every year CA Indosuez (Switzerland) SA relies on compensation surveys conducted by two specialised companies, in which major financial market employers participate. These surveys make it possible to have insight into changes in the market for nearly all of the bank's functions and into various compensation factors. In keeping with the Group's general principles, the compensation policy for members of the CA Indosuez (Switzerland) SA. Executive Committee is tightly regulated, with rules imposed on the structure of their compensation. It is made up of the basic salary and a discretionary variable component. It is aimed at promoting individual and group performance. Remuneration is structured to ensure that the fixed and variable components are fairly balanced. Variable remuneration is an integral part of the annual pay of Executive Committee members. It is inspired by principles arising from the FINMA 2010/1 "Remuneration Systems" Circular and the Capital Requirements Directive IV (CRD IV) and Alternative Investment Fund Managers (AIFM) directives. Thus, above a certain threshold, the variable pay of Executive Committee members is broken down between an immediately payable portion and a portion deferred in thirds over a 3-year period. The deferred variable pay is awarded in the form of Crédit Agricole SA shares or instruments backed by such shares. The deferred portion changes based on the total variable pay allocated for the fiscal year. The higher the variable pay, the greater the deferred share of the total variable pay. Payment of the deferred portion is subject to Performance and Eligibility Conditions. The system put in place makes it possible to give members of the Executive Committee a stake in the Bank's medium-term performance and risk management. Every year, the Remuneration Committee approves the total fixed and variable pay package of the pool that the Executive Committee members collectively form.

the Board of Directors and the Executive Committee

a) Introduction

CA Indosuez (Switzerland) SA is not subject to the statute barring excessive pay in publicly traded limited companies. It does not pay the members of its Board of Directors in the form of profit sharing.

b) Members of the Board of Directors

Members of the Board of Directors who are employees of a company in the Crédit Agricole Group are not paid for their Board duties (including the Chair and the Board's Committees). Members of the Board of Directors who are not employees of the Crédit Agricole Group receive annual fees in an amount determined by the Bank's Annual Shareholders’ Meeting, payable net of payroll deductions, unless otherwise agreed to at the end of the fiscal year and on a pro rata basis for the period during which they held office. Annual compensation for Directors for the year 2018 was set at CHF 30 000. The Chairman of the Audit and Risk Committee collected CHF 10 000 of additional pay, and the members of that Committee collected CHF 5 000 of additional pay.

c) Members of the Executive Committee

The compensation policy of CA Indosuez (Switzerland) SA approved by the Board of Directors is fully in line with the 2018 compensation policy of CA Indosuez Wealth (Group), which itself reflects the compensation policy of the Crédit Agricole Group, while also taking into account local features.