Compensation

As part of its corporate governance approach, Arkema has decided to refer to the Corporate Governance Code for AFEP-MEDEF French listed companies.

In accordance with the provisions of the internal regulations of the Board of Directors, the Nominating, Compensation and Corporate Governance committee issues recommendations or propositions concerning the compensation of the Company’s directors.

Compensation of the Chairman and Chief Executive Officer

The structure of the Chairman and Chief Executive Officer's annual compensation consists of:

  • a fixed part,
  • a variable part of up to 150% of the annual fixed compensation based on achieving a number of specific quantitative and qualitative targets which essentially concern the implementation of the Group’s strategy, and
  • the award of performance shares entirely subject to the fulfilment of performance conditions.

Performance shares and stock options

The Arkema Group put in place stock option and free share allocation plans for its employees in order to involve them closely in the Group’s future growth as well as its stock market performance.

Performance shares

During its meeting dated 6th November 2013, the Board of Directors has decided to award 250,000 performance shares to 772 beneficiaries.

 

For further information about free share and performance share allocation plans, please refer to pages 142 to 145 of 2013 Reference document.

Stock options

In accordance with the stock-based compensation policy decided by the Board of Directors in 2013, no stock option plan has been implemented since 2012.

 

For further information about stock option plans prior to 2012, please refer to pages 146 and 147 of 2013 Reference document.