APC 2011 Annual Report Download - page 127

1252011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
CORPORATE GOVERNANCE
3
MANAGEMENT INTERESTS ANDCOMPENSATION
Pension benefits**
(1) The maximum amount is defi ned as follows: 50% if the number of years of service is less than or equal to fi ve years, plus 1% per year from the
sixth year of service for Senior Manager status.
French members of the Management Board are covered by the
Group’s top-hat defi ned-benefi t pension plan (article39) and, with the
exception of Jean-Pascal Tricoire, supplementary defi ned- contribution
pension plans (article 83) for employees and/or Group Managers.
The benefi ts from defi ned-contribution plans are deducted from the
pension supplement from the defi ned-benefi t plan.
The defi ned-benefi t plan provides for a pension supplement of a
maximum amount equal to 60%(1) of the difference between the
average reference salary (i.e. the average of the base salary and of
the remuneration during three calendar years prior to retirement)
plus the total benefi t amounts granted under external plans
(compulsory and other plans, where applicable). The pension plus
the additional pensions from defi ned-contribution plans, may not
exceed 25% of the average reference salary. The defi ned-benefi t
plan includes, subject to conditions, a right to 60% for the surviving
spouse. Under the contingency section, an annuity for the spouse
is paid if the executive dies before the retirement age. In the event
of disability occurring in the course of business, the executive has a
right to a pension supplement as of his/her sixtieth birthday.
This defi ned-benefi t plan (see pages 260, 261 and 265 ) will be
modifi ed as of July1, 2012 in particular to provide for a progressive
acquisition of the rights of these benefi ciaries according to how long
they have been in the Group and on the Executive Committee.
Non-French Members of the Board of Directors are covered by
pension plans in line with local practices in their respective countries.
Compensation of the Supervisory Board Members
Chairman of the Supervisory Board
Based on the recommendation of the Remunerations, Appointments
and Human Resources Committee, at its meeting on April22, 2010,
the Supervisory Board decided to set the annual compensation of
its Chairman at EUR500,000 not including the attendance fees paid
to Supervisory Board Members.
The Chairman of the Supervisory Board does not receive any stock
options or stock grants and will not be entitled to any payment on
leaving the Board.
In 2011, MrHenri Lachmann was paid:
•in his capacity as Chairman of the Supervisory Board:
EUR500,000;
•in attendance fees for 2010: EUR60,000;
•under the Company’s pension plan for senior executives:
EUR558,276.
Mr Lachmann has a Company car and may also use the
chauffeur- driven Company cars made available to Group Senior
Management. This benefi t in kind can be estimated for the entire
fi nancial year at EUR2,279 .
Members of the Supervisory Board
The Annual Shareholders’ Meeting set total attendance fees at
EUR1million. TheSupervisory Board has decided to allocate these
fees as follows:
•Board members and non-voting Members resident in France
receive a basic fee of EUR15,000 and members resident outside
France receive double this amount;
•Board members receive a fee of EUR5,000 for each meeting they
attend;
•members who sit on the committees of the Board receive a fi xed
fee of EUR15,000, with the Audit Committee Chairman receiving
double this amount.