EssilorLuxottica: Executive corporate officers

0

Compensation of executive corporate officers

Charenton-le-Pont, France (December 21, 2020 – 8:00 a.m.) – As announced on December 17, 2020, the Board of Directors of EssilorLuxottica has decided to adapt the governance of EssilorLuxottica in full compliance with the principle of equal powers of the business combination agreement, in order to respond the desire for retirement of its Deputy Chief Executive Officer.

Mr. Sagnières has left all his executive responsibilities at EssilorLuxottica and its subsidiaries and remains non-executive Vice-Chairman of the Company.

In order to preserve the principle of equal powers of the business combination agreement currently in force, Leonardo Del Vecchio has decided to voluntarily step down from his executive responsibilities at EssilorLuxottica and to remain non-executive Chairman of the Company.

The Board conferred executive powers on Francesco Milleri and Paul du Saillant, who were appointed respectively Managing Director (CEO) and Deputy Managing Director (Deputy Managing Director) of EssilorLuxottica, until the appointment of the new Board of Directors of EssilorLuxottica. ‘by 2021. Annual General Meeting of Shareholders. Mr. du Saillant becomes Chairman of Essilor International.

Financial conditions for the termination of the executive functions of Hubert Sagnières and Leonardo Del Vecchio within EssilorLuxottica

On the recommendation of the Appointments and Compensation Committee, the Board of Directors approved the financial conditions for the termination of the executive functions of Hubert Sagnières and Leonardo Del Vecchio within EssilorLuxottica. These financial conditions are strictly in accordance with the remuneration policy approved by the shareholders.

Concerning Hubert Sagnières:

  • Fixed compensation: Hubert Sagnières’ fixed compensation for 2020, covering the period from January 1 to December 17, 2020, the date of the end of his term of office as Deputy CEO, will be € 962,366.
  • Compensation for his mandate as director: the compensation for his mandate as director for the first half of 2020 was 32,500 euros, which was paid in July 2020. The compensation for his mandate as director for the second half of 2020 will be set. and paid in January 2021, as is the case for all other directors.
  • Variable compensation 2020: The variable compensation of Hubert Sagnières for the period from January 1 to December 17, 2020 (inclusive) will be set by the Board of Directors on a pro rata temporis base in the first quarter of 2021, when the information necessary to assess its performance will be available. Payment of the variable portion is subject to the approval of the Annual General Meeting called to approve the accounts for the year ended December 31, 2020.
  • Performance share plans in progress: in application of the plan regulations and given the retirement of Hubert Sagnières, the presence condition provided for by the performance share plans in progress is deemed to be satisfied. The shares allocated under the current action plans are as follows:
    • 28,530 shares, after assessment of the performance conditions, out of the 50,000 performance shares granted by decision of the Board of Directors on October 3, 2017;
    • 50,000 performance shares, granted by decision of the Board of Directors of November 29, 2018;
    • 40,000 performance shares, allocated by decision of the Board of Directors on October 3, 2019; and
    • 20,000 performance shares, granted by decision of the Board of Directors on October 1, 2020.

Note that all the other rules of the plan, including the collective and individual performance conditions, continue to apply.1. In accordance with the plan regulations, the individual performance condition will be assessed over the financial years now closed during which Hubert Sagnières served as Deputy Chief Executive Officer.

  • Supplementary defined benefit retirement plan (article 39): Hubert Sagnières will benefit from the supplementary defined benefit retirement plan under the same conditions as those applicable to the other beneficiaries of the plan. In 2009, Hubert Sagnières reached the maximum years of service defined in the plan. His additional pension will therefore be equal to 25% of his average compensation over the period from December 17, 2017 to December 17, 2020. The gross annual amount of his additional pension is estimated at 447,000 euros. A provision has been made to cover the scheme, which is funded by an insurance company.
  • Severance indemnity and non-compete indemnity: Hubert Sagnières will not receive any severance indemnity or non-compete indemnity upon termination of his duties as Deputy Chief Executive Officer.
  • Unemployment insurance: the contribution paid in February 2020 to the GSC unemployment fund for corporate officers amounted to € 8,004 (annual lump sum payment).
  • Employer contributions to group plans (health insurance, death / disability insurance, defined contribution pension plan): the Company contributed to these group plans for Hubert Sagnières for the period from January 1 to December 17, 2020.
  • Employment contract: Hubert Sagnières’ employment contract ended due to his retirement. He will not be required to work during his notice and will receive an end-of-career indemnity, as defined in the collective agreement applicable within Essilor International SAS. The amount of the retirement indemnity will be equal to 4 months of his contractual remuneration and is estimated at 400,000 euros.

Regarding Leonardo Del Vecchio:

  • Fixed compensation: Leonardo del Vecchio’s fixed compensation for 2020, covering the period from January 1 to December 17, 2020, the end date of his term of office as CEO, will be € 837,365. Note that in the context of the COVID-19 crisis, Leonardo Del Vecchio requested a 50% reduction in his fixed compensation for the period from April to June 2020 inclusive.
  • Compensation for his mandate as director: the compensation for his mandate as director for the first half of 2020 was 25,000 euros, which was paid in July 2020. The compensation for his mandate as director for the second half of 2020 will be set. and paid in January 2021, as is the case for all other directors.
  • Variable compensation 2020: The variable compensation of Leonardo Del Vecchio for the period from January 1 to December 17, 2020 (inclusive) will be set by the Board of Directors on a pro rata temporis base in the first quarter of 2021, when the information necessary to assess its performance will be available. Payment of the variable portion is subject to the approval of the Annual General Meeting called to approve the accounts for the year ended December 31, 2020.
  • Current performance share plans: the shares allocated under the current action plans are as follows:
    • 50,000 performance shares, granted by decision of the Board of Directors of November 29, 2018;
    • 40,000 performance shares, allocated by decision of the Board of Directors on October 3, 2019; and
    • 20,000 performance shares, granted by decision of the Board of Directors on October 1, 2020.

Note that all the other rules of the plan, including the collective and individual performance conditions, continue to apply.1. In accordance with the plan regulations, the individual performance condition will be assessed over the financial years now closed during which Leonardo Del Vecchio served as Chief Executive Officer.

Leonardo Del Vecchio, who will continue to exercise his functions as director and Chairman of the Board of Directors of the Company and as Executive Chairman of Luxottica, will continue to fulfill the condition of presence provided for by the performance share plans in progress. .

  • Supplementary defined benefit pension plan (article 39): Leonardo Del Vecchio is not eligible for the Company’s defined benefit pension plan.
  • Severance indemnity and non-compete indemnity: Leonardo Del Vecchio will not receive any severance indemnity or non-compete indemnity in the event of termination of his functions as Chief Executive Officer.
  • Employer contributions to group plans (health insurance, death / disability insurance, defined contribution pension plan): the Company contributed to these group plans for Leonardo Del Vecchio for the period from January 1 to December 17, 2020.

Remuneration from December 18, 2020

The Board of Directors also decided, on the recommendation of the Appointments and Compensation Committee, that:

  • For the period from December 18 to December 31, 2020, Leonardo Del Vecchio, Hubert Sagnières, Francesco Milleri and Paul du Saillant will not receive any compensation for the performance of their duties as Chairman of the Board of Directors, Vice-Chairman of the Board directors, chief executive officer and deputy chief executive respectively.
  • The remuneration of Leonardo Del Vecchio, Hubert Sagnières, Francesco Milleri and Paul du Saillant for the performance of such services as of January 1, 2021 will be set at the start of the next financial year as part of the 2021 remuneration policy, currently in progress. elaboration. prepare.

EssilorLuxottica is a world leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its mission is to help people around the world see more, be more, and live their lives to the fullest by meeting their evolving vision needs and personal style aspirations. The company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in iconic eyewear manufacturing, to set new industry standards for skin care. view and experience of the consumer around them. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and transitions®, and world-class distribution brands, including Sunglass Hut and LensCrafters, are part of the EssilorLuxottica family.
In 2019, EssilorLuxottica had more than 150,000 employees and a consolidated turnover of 17.4 billion euros.
EssilorLuxottica shares are listed on the Euronext Paris market and are part of the Euro Stoxx 50 and CAC 40 indices.
Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL: FP.

CONTACTS

EssilorLuxottica Investor Relations
(Charenton-le-Pont) Tel: + 33 1 49 77 42 16
(Milan) Tel: + 39 (02) 8633 4870
Email: [email protected]
EssilorLuxottica corporate communication
(Charenton-le-Pont) Tel: + 33 1 49 77 45 02
(Milan) Tel: + 39 (02) 8633 4470
E-mail: [email protected]

1 A description of the performance share plans and the related conditions can be found in chapters 2.3 and 5.4 of the 2019 Universal Registration Document.

  • DOWNLOAD THE PDF VERSION OF THE PRESS RELEASE

Share.

Comments are closed.