APC 2015 Annual Report Download - page 92

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC90
SUSTAINABLE DEVELOPMENT
2COMMITTED TO AND ON BEHALF OFEMPLOYEES
Employee Health and Welfare policy principles
One of Schneider Electric’s underlying benefi t objectives is to
protect the basic health and welfare of all of its employees and to
provide adequate security to their dependents in the event of their
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 dependents in the
event of their death by any cause.
Sustainable development criteria in
performance incentives
Since 2011, sustainable development components have been
added to the personal performance incentives of all members of
the Executive Committee. When possible, 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 targets for the members of the Executive
Committee in charge of Businesses ).
Sustainable development criteria also apply to the main zone
and C ountry Presidents (20 in 2015) and to the heads of central
functions (Finance, HR and Business Development) in Global
Operations. For all the other Country Presidents, it is not a personal
objective in their bonus, but it is part of their key objectives for their
annual performance.
The sustainable development criteria are then cascaded into the
teams if relevant and decided. For example, since2010, the CO2
reduction targets have been taken into account for the performance
incentives of all Global Supply Chain personnel who receive a
bonus and are involved in these projects; all Purchasing personnel
who receive a bonus have the sustainable purchasing 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 account for the performance
incentives of all managers at industrial sites and logistics centers
who receive a bonus.
Since December 2011, a portion of the award under the annual
long- term incentive plan that will be defi nitely granted at the time of
vesting is subject to the achievement of a sustainable development
target. This target is defi ned as the Planet & Society barometer
score at the end of the year following the annual grant (score at
the end of 2015 for 2014 annual grant). As a reminder, the Planet &
Society barometer is published externally and its components are
audited.
Since 2012, the profi t-sharing incentive plan for the French entities
Schneider Electric Industries and Schneider Electric France 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 profi t-sharing incentive plans of 12 other
French entities.
Employee shareholding
Schneider Electric believes that employee share ownership is
instrumental in strengthening companies’ capital (both fi nancial and
human), and that employee shareholders are long-term partners.
The Group has been building an international employee shareholder
base since 1995 that is representative of the Group’s diversity.
Employees held around 4% of the capital in 2015. Employees in
60 countries have already benefi ted from a share ownership plan
over the years.
Employee share ownership plan 2015
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.
In recognition of its communication efforts, Schneider Electric
was awarded the 2013 prize for the quality of information and
training for employee shareholders and employee shareholder
representatives and the 2014 prize for the best governance by FAS
(Fédération Française des Associations d’Actionnaires Salariés et
Anciens Salariés). In view of the dynamism of the employee share
ownership program, the « 2015  Plan » was again enlarged and
proposed in 33countries with a unique Classic Offer. More than
43 ,000employees subscribed shares for a total of EUR135 million .
The employee shareholding as of December 31, 2015, represented
3.84% of Schneider Electric SE’s capital and 6% of the voting
rights. 66% of the Group employees shareholders were located
outside of France.
In2016 , the Group expects to launch a new global Plan which will
cover 120,000employees .
Socially responsible investment fund
In November 2009, Schneider Electric created the « Fonds
Schneider Énergie Solidaire» (a dedicated mutual fund). Information
sessions on this social wellfare fund have been held on a regular
basis, providing the opportunity for employees in France to learn
about and contribute to the ideas and actions of Schneider Electric
outlined in its Access to Energy program (see pages93-97 ).
Investment in this fund has reached EUR11million, thereby enabling
5,000employees to take part in social welfare projects in France
and abroad which have been developed as part of the Access to
Energy program.