APC 2012 Annual Report Download - page 82

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC80
SUSTAINABLE DEVELOPMENT
2COMMITTED TO AND ON BEHALF OFEMPLOYEES
4.7 Employee share ownership
Schneider Electric is convinced that employee share ownership is
instrumental in strengthening companies’ capital (both fi nancial and
human), and that employee shareholders are long-term partners.
Approach
The Group has been building an international employee shareholder
base since 1995 that is representative of the Group’s diversity.
Employees should hold around 5% of the capital in2015.
Action plans
Employee share ownership plan 2012
Schneider Electric has ramped up its in-house communication to
employees to ensure that they have a clear understanding of the
challenges facing the Company, its policy and its fi nancial results.
The “2012 Plan” was enlarged and proposed in 26 countries.
More than 28,000 employees subscribed shares for a total of
EUR123million.
The employee shareholding at December31, 2012 represented:
•4.44% of Schneider ElectricSA’s capital and 6.77% of the voting
rights;
•over 35% of the employees worldwide.
In2013, the Group is already expected to launch a new global Plan.
This 2013 Plan will cover 120,000employees in 34countries.
Socially responsible investment fund
In November2009, Schneider Electric created the Fund Schneider
énergie Solidaire (a dedicated mutual fund). A number of information
sessions are held regularly on this special purpose fund providing
the opportunity for employees in France to share in the ideas
and actions of Schneider Electric outlined in its access to energy
program called BipBop (see pages83-87 ).
Investment in this fund totaled in excess of EUR4.65million as of
December31, 2012, thus enabling 2,666 of the employees to take
part in social welfare projects in France and abroad developed as
part of the BipBop program.
4.8 Compensation and Benefits
Approach
Schneider Electric is committed to providing a comprehensive
compensation and benefi ts offering that is competitive and cost
effective in each market and country in which the Group operates in
order to attract, motivate and retain talent.
Schneider Electric ensures that all compensation and benefi ts
decisions and policies are based on the principles of fairness, equity
and non discrimination.
Action plans
Compensation
Schneider Electric rewards employees’ contributions based on a
pay-for-performance principle, competitive market positioning and
scarcity of skills. Industry market data is gathered on a country
basis via third-party surveys to support compensation decisions.
Schneider Electric has built and implemented a global job
architecture to support and align Rewards and Human Resources
programs so that Schneider Electric can develop and move talent
across different businesses and geographies.
In line with our pay-for-performance philosophy, our compensation
structure can include fi xed and variable elements. The short-term
variable element is made up of individual and collective performance
criteria and is designed to foster a sense of belonging and
collaboration. The long-term variable component is discretionary
and is designed to motivate and retain specifi c groups of targeted
employees who demonstrate potential and possess critical skills.
Benefits
Benefi ts are an essential component of our reward offering and
refl ect the diverse needs of our employees.
Since employee benefi t plans can vary signifi cantly between
countries due to different levels of social benefi ts provisions and
diverse tax and legal regulations, Schneider Electric’s benefi ts
approach is primarily country-driven.
Schneider Electric has a Benefi ts and Pension Funds Corporate
Committee whose responsibilities are to review Benefi ts Policy
Principles compliance and evolution and to monitor asset return
and validate investments long term strategy both at a corporate and
country level. This Committee meets twice a year.
All compensation and benefi ts policies follow local statutory and
collective agreements.
Sustainable development criteria in performance
incentives
Sustainable development components were added to the personal
performance incentives of all members of the Executive Committee
in2011. These components are directly linked to the Planet&Society
Barometer targets. They are personalized according to the areas
of involvement for each (e.g., Green Premium: production of
Environmental Product Profi les for the members of the Executive
Committee in charge of the activities).