APC 2014 Annual Report Download - page 90

2SUSTAINABLE DEVELOPMENT
COMMITTED TO AND ON BEHALF OF EMPLOYEES
collective performance criteria and is designed to foster a sense of The sustainable development criteria are then cascaded into the
belonging and collaboration. The long-term variable component is teams if relevant and decided. For example, since2010, the CO2
discretionary and is designed to motivate and retain specific reduction targets have been taken into account for the
groups of targeted employees who demonstrate potential and performance incentives of all Global Supply Chain personnel who
possess critical skills. receive a bonus and involved in these projects; all Purchasing
personnel who receive a bonus have the sustainable purchasing
Benefits
KPI of the Planet & Society Barometer in their performance
incentives; and the reduction in the occupational accidents
Severity Rate and in the Medical Incident Rate is taken into
Benefits are an essential component of the Group’s reward offering account for the performance incentives of all managers at industrial
and reflect the diverse needs of its employees. sites and logistics centers who receive a bonus.
Since employee benefit plans can vary significantly between Since December2011, a portion of the award under the annual
countries due to different levels of social benefits provisions and long term incentive plan that will be definitely granted at time of
diverse tax and legal regulations, Schneider Electric’s benefits vesting is subject to the achievement of a sustainable development
approach is primarily country-driven. target. This target is defined as the Planet & Society Barometer
Schneider Electric has a Benefits and Pension Funds Corporate score at the end of the year following the annual grant (% score at
Committee whose responsibilities are to review Benefits Policy the end of 2014 for 2013 annual grant). As a reminder, the Planet
Principles compliance and evolution and to monitor asset return & Society Barometer is published externally and its components
and validate investments long term strategy both at a corporate are audited.
and country level. This Committee meets twice a year. In June2012, the profit-sharing incentive plan was signed for the
All compensation and benefits policies follow local statutory and years 2012-2014 for the French entities Schneider Electric
collective agreements. Industries and Schneider Electric France. For the first time, the
allocation of profit-sharing for the employees of these entities
Employee Health and Welfare policy principles
includes achieving the annual targets of the Planet&Society
Barometer. The reduction in the occupational accidents Severity
Rate is also taken into account in the profit-sharing incentive plans
One of Schneider Electric’s underlying benefit objectives is to of 12 other French entities.
protect the basic health and welfare of all of its employees and to
provide adequate security to their dependents in the event of their
Employee share ownership
death. In practice, this means that Schneider Electric will offer a
global security standard to ensure that at least a multiple
equivalent to one year’s salary is paid to an employee’s Schneider Electric believes that employee share ownership is
dependents in the event of their death by any cause. instrumental in strengthening companies’ capital (both financial and
human), and that employee shareholders are long-term partners.
In 2014, Human Resources and the local business have continued
to actively track the agreed deployment roadmap in order to The Group has been building an international employee
ensure full compliance in the first quarter of 2015. shareholder base since1995 that is representative of the Group’s
diversity. Employees should hold around 5% of the capital in2015.
Sustainable development criteria in
Employees in 60 countries have already benefited from a share
performance incentives
ownership plan over the years.
Since 2011, sustainable development components have been
Employee share ownership plan 2014
added to the personal performance incentives of all members of
the Executive Committee. When possible, these components are Schneider Electric has ramped up its in-house communication to
directly linked to the Planet&Society Barometer targets. They are employees to ensure that they have a clear understanding of the
personalized according to the areas of involvement for each (e.g.,challenges facing the company, its policy and its financial results.
Green Premium targets for the members of the Executive In recognition of its communication efforts, Schneider Electric was
Committee in charge of the activities). awarded the 2013 prize for the quality of information and training
Sustainable development criteria also apply to the main zone and to employee shareholders and employee shareholder
country Presidents (10 in 2014) and to the Heads of central representatives by FAS (Fédération Française des Associations
functions (Finance, HR and Business Development) in the Global d’Actionnaires Salariés et Anciens Salariés). In view of the
Operations. For all the other Country Presidents, it is not a dynamism of the employee share ownership program, the «2014
personal objective in their bonus, but it is part of their key Plan» was again enlarged and proposed in 38countries. More
objectives for their annual performance. than 41,000employees subscribed shares for a total of
EUR205million with nearly 11,000 new investors.
88 2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC