2014 Registration Document and Annual Financial Report - page 134

Corporate GOVERNANCE
Interests and compensation
3
The performance criteria applicable to the termination benefit are
as follows:
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consolidated return on capital employed for the previous three
years must have exceeded the Group’s cost of capital as published
in the Registration Documents for those years;
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operating free cash flow must have been positive in at least two
of the previous three years;
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like-for-like EBITDAR margin must have exceeded 27.5% in at
least two of the previous three years;
The amount of the termination benefit would be as follows:
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if all three criteria are met, the benefit would be payable in full;
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if at least two of the three criteria are met, half of the benefit
would be payable;
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if none or only one of the three criteria is met, no benefit would
be due.
Supplementary pension benefits
The Chairman and Chief Executive Officer, Deputy Chief Executive
Officer and several dozen other senior executives are members of
a
supplementary pension plan
set up within the Company. This
plan complies with the recommendations contained in the AFEP/
MEDEF Code, as described below.
The overall plan comprises an ”Article 83“
defined contribution
plan
and an ”Article 39“
defined benefit plan
.
Under the
defined contribution plan,
members are entitled to
a pension annuity (with survivor benefits), which is determined
based on the contributions paid by the Company for each year of
their membership of the plan. The annual contribution paid by the
Company for each plan member corresponds to 5%of the member’s
gross compensation received for the year concerned, capped at five
times the annual ceiling used for calculating French social security
contributions (the «PASS»).The maximum contribution paid by Accor
for 2014 therefore amounted to €9,387
(1)
. Eligible members of this
plan are executives who have served with the Group for at least one
year and whose gross compensation is higher than four times the
PASS,
i.e.
€150,192 for 2014. In accordance with the French Social
Security Code, if a plan member leaves the Group before the date
of retirement, he or she retains the rights accrued under the plan.
Under the
defined benefit plan,
members are entitled to a
pension annuity (with survivor benefits) provided they remain with
the Group until they retire. Each member progressively acquires
their entitlement, calculated each year for which they are a plan
member based on their annual reference compensation
(2)
. Each
year of plan membership represents between 1% and 3% of the
reference compensation, depending on the compensation brackets
concerned,
i.e.
:
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portion of reference compensation representing between 4 and
8 times the PASS: 1%;
ƒƒ
portion of reference compensation representing between 8 and
12 times the PASS: 2%;
ƒƒ
portion of reference compensation representing between 12 and
24 times the PASS: 3%;
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portion of reference compensation representing between 24 and
60 times the PASS: 2%.
The entitlement for any given year of plan membership therefore
corresponds to the aggregate of the amounts accrued for each of
the above compensation brackets.The amount of the final pension
annuity equals the sum of the entitlements calculated for each year.
Two ceilings are applied to the final amount of the pension annuity:
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the amount of the gross annuity may not exceed 30% of the
member’s last reference compensation;
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for members whose last reference compensation was more than
12 times the PASS, the overall replacement rate represented by
pension benefits payable under government-sponsored plans
and Accor supplementary pension plans is capped at 35% of
the average of their best three years’ reference compensation
in the ten years prior to retirement.
Approximately 80 executives were eligible for this plan in 2014.
To be eligible for a pension under the defined benefit plan, when
they retire, members must have participated in the plan for at least
five years or have served with the Accor Group for at least fifteen
years. If they do not meet this requirement they are not entitled to
any payments under the plan.The pension annuity payable under the
defined benefit plan will be reduced by the amount of the annuity
payable under the above-described defined contribution plan.
For example, for a reference compensation of €1,000,000 in
2014, provided that all of the plan’s eligibility criteria are met, the
entitlement is calculated as follows:
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1% for compensation representing between 4 times the PASS
(€150,192) and 8 times the PASS (€300,384), corresponding to
1% of €150,192,
i.e.
€1,502 (a);
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2% for compensation representing between 8 times and
12 times the PASS (€450,576), corresponding to 2% of €150,192,
i.e.
€3,004 (b);
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3% for compensation representing between 12 times and
24 times the PASS (€901,152), corresponding to 3% of €450,576,
i.e.
€13,517 (c);
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2% for compensation representing between 24 times the PASS
and €1,000,000 (the reference compensation), corresponding to
2% of €98,848,
i.e.
€1,977 (d).
The sum of these components –
i.e.
(a)+(b)+(c)+(d) – represents a
total potential annuity entitlement of €20,000 for 2014.
This calculation is performed for each year of plan membership
based on the member’s reference compensation and the applicable
PASS for that year. The final annuity corresponds to the aggregate
of the annual amounts thus calculated.
This total final annuity under the defined benefit plan corresponds
to an overall amount that includes any annuity to which the
member would be entitled under the Company’s defined contribution
plan,
i.e.
the defined contribution plan annuity is not added to the
defined benefit plan annuity.
(1) For the defined contribution plan, the employer’s contribution recognized by Accor in its financial statements for 2014 for each of the Company’s
two executive officers corresponded to a gross amount of €9,387.
(2) The reference compensation corresponds to total gross fixed and variable compensation plus any exceptional bonus paid during the reference year.
Registration Document 2014
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