Fnac Darty: 2021 compensation paid to executive corporate officers

0






Compensation of executive corporate officers

At its meeting of February 23, 2022, on the recommendation of the Appointments and Compensation Committee, the Fnac Darty Board of Directors reviewed and approved the following compensation for Mr. Enrique Martinez, Chief Executive Officer.

Variable compensation of Mr. Enrique Martinez for 2021

For 2021, the annual variable compensation of the Chief Executive Officer may range from 0% if no objective is achieved, to 100% of the annual fixed compensation if objectives are achieved. This variable compensation can reach a maximum of 150% of the annual fixed compensation if the objectives are exceeded.

Commercial and financial criteria are the overriding considerations in structuring the annual variable compensation. It breaks down as follows: 60% on commercial and financial objectives, 10% on an objective linked to the customer experience, 10% on objectives linked to social, societal and environmental responsibility and 20% on qualitative objectives.

The commercial and financial objectives for 2021 set for the variable portion are as follows:

  • Group current operating profit (ROC) up to 20% of the maximum for an achievement rate of 100% of the objective, with a maximum of 166.67% in the event of outperformance;
  • Free group cash flow (FCF) up to 20% of the maximum for an achievement rate of 100% of the objective, with a maximum of 166.67% in the event of outperformance;
  • Group turnover up to 20% of the maximum for an achievement rate of 100% of the objective, with a maximum of 166.67% in the event of outperformance.

The 2021 objective relating to the customer experience is as follows:

  • Net Promoter Score (NPS) for 10% of the maximum for an achievement rate of 100% of the objective, with a maximum of 150% in the event of overperformance.

The company’s 2021 social, societal and environmental responsibility objectives set for the

variable part are as follows:

  • Groups extra-financial rating up to 5% of the maximum for an achievement rate of 100% of the objective, with a maximum of 150% in the event of outperformance;
  • Commitment of employees for 5% of the maximum for an achievement rate of 100% of the objective, with a maximum of 150% in the event of overperformance.

The level of achievement of the above criteria has been precisely established for each. Each commercial, financial, customer experience and social, societal and environmental responsibility objective is subject to:

  • A trigger threshold below which no compensation is due for the objective concerned, and
  • A level of achievement beyond which compensation is capped at 166.67% for commercial and financial objectives, and at 150% for customer experience and social, societal and environmental responsibility objectives.

1

The 2021 qualitative objectives set for the variable portion are as follows:

  • Quality of management, Social climate, Quality of financial communication, Quality of shareholder reporting, Relations with directors for 10% of the maximum for a rate of achievement of 100% of the objective;
  • Launch and deployment of the Everyday strategic plan with the achievement of the objectives set in the first year for 10% of the maximum for a rate of achievement of 100% of the target.
    The performance on this second criterion must be assessed with regard to the results to be delivered on the 3 ambitions that the group has set for itself by 2025:
    1. Embody new standards for successful digital and human omnichannel retail;
    2. Help consumers adopt sustainable behaviors;
    3. Reference deployment home assistance service by subscription.

The potential variable amount of qualitative objectives is capped at 100% of the potential of the objective achieved on these criteria, with no possibility of compensation for outperformance.

The Board of Directors measured each of the commercial, financial, customer experience and societal, social and environmental responsibility criteria based on performance throughout 2021. The qualitative criteria were assessed during the same meeting based on the assessment of the Appointments and Remuneration Committee, partly quantified.

The overall achievement rate of the 2021 variable portion is 93.94% of the maximum and the gross amount due for 2021 is €1,056,782.

In accordance with Article L.22-10-34 II of the French Commercial Code, the payment of this annual variable compensation is subject to the approval of the components of compensation and benefits of any kind paid or awarded to Mr. Enrique Martinez in respect of of 2021 by the General Meeting of May 18, 2022.

Fixed and variable compensation of Mr. Enrique Martinez for 2022

On February 23, 2022, the Board of Directors, on the recommendation of the Appointments and Compensation Committee, in accordance with its decision of February 20, 2019, decided to maintain the fixed compensation of its Chief Executive Officer at €750,000 for 2022 with a possible amount also unchanged within the limit of 150% of the fixed compensation to compensate for outperformance.

Regarding the variable compensation for 2022, no change has been made to its structure. Commercial and financial criteria remain paramount. The variable compensation breaks down as follows: 60% on commercial and financial objectives, 10% on an objective linked to the customer experience, 10% on objectives linked to social, societal and environmental responsibility and 20% on qualitative objectives .

The commercial and financial objectives for 2022 set for the variable portion are as follows:

  • Group current operating profit (ROC) up to 20% of the maximum for an achievement rate of 100% of the objective, with a maximum of 166.67% in the event of outperformance;
  • Free group cash flow (FCF) up to 20% of the maximum for an achievement rate of 100% of the objective, with a maximum of 166.67% in the event of outperformance;
  • Group turnover up to 20% of the maximum for an achievement rate of 100% of the objective, with a maximum of 166.67% in the event of outperformance.

2

The 2022 objective relating to the customer experience is as follows:

  • Net Promoter Score (NPS) for 10% of the maximum for an achievement rate of 100% of the objective, with a maximum of 150% in the event of overperformance.

The company’s 2022 social, societal and environmental responsibility objectives set for the variable portion are as follows:

  • Groups extra-financial rating up to 5% of the maximum for an achievement rate of 100% of the objective, with a maximum of 150% in the event of outperformance;
  • Commitment of employees for 5% of the maximum for an achievement rate of 100% of the objective, with a maximum of 150% in the event of overperformance.

The 2022 qualitative objectives set for the variable portion are as follows:

  • Execution of the Daily Plan: Development of the service policy; Achievement of digital ambition; Achievement of sustainability goals; Realization of the performance plan; Design and implementation of a new structure strengthening risk management and cybersecurity corresponding to 15% of the maximum for a rate of achievement of 100% of the objective;
  • Quality of management and social climate corresponding to 5% of the maximum for a rate of achievement of 100% of the objective.

The potential variable amount of qualitative objectives is capped at 100% of the potential of the objective achieved on these criteria, with no possibility of compensation for outperformance.

All these targets, objectives and goals are predetermined according to a specific methodology.

In accordance with Article L.22-10-8 of the French Commercial Code, the compensation policy for corporate officers for 2022 will be submitted to the approval of the General Meeting of May 18, 2022.

3

Warning

Fnac Darty SA published this content on February 25, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on February 25, 2022 8:49:28 PM UTC.

Public now 2022

All the news from FNAC DARTY

Analyst recommendations on FNAC DARTY

Sales 2021 7,811 million
8,800M
8,800M
Net income 2021 148M
167M
167M
Net debt 2021 795 million
895 million
895 million
PER 2021 ratio 9.44x
2021 performance 3.01%
Capitalization 1,325 million
1,493 million
1,493 million
EV / Sales 2021 0.27x
EV / Sales 2022 0.21x
# of employees 25,000
Floating 62.6%


Duration :

Period :




Fnac Darty Technical Analysis Chart |  MarketScreener

Technical analysis trends FNAC DARTY

Short term Middle term Long term
Tendencies Bearish Bearish Bearish



Evolution of the income statement

To sell

To buy

Medium consensus TO BUY
Number of analysts 8
Last closing price

€49.68

Average target price

€66.25

Average Spread / Target 33.4%


Share.

Comments are closed.