Information relating to the components of the Chairman and Chief Executive Officer's compensation as determined by the Board of Directors on February 21, 2019
Further to the recommendation of the Compensation Committee, the Board of Directors, at the meeting held on February 21, 2019, (i) determined Jacques Aschenbroich's variable compensation for his duties as Chairman and Chief Executive Officer for the financial year ended December 31, 2018
and (ii) acknowledged the degree of achievement of his pension plan's performance condition for the financial year ended December 31, 2018.
I.
Jacques Aschenbroich's
December 31, 2018
variable
compensation
for
the
financial
year
ended
Further to the recommendation of the Compensation Committee, the Board of Directors assessed the degree of achievement of the quantifiable and qualitative criteria for Jacques Aschenbroich's variable compensation in respect of the financial year ended December 31, 2018. The components of this compensation were determined by the Board of Directors on February 22, 2018, acting on the recommendation of the Compensation Committee and approved at the General Shareholders' Meeting on May 23, 2018 as part of the vote on the 2018 compensation policy (tenth resolution) (the "2018
Compensation Policy").
Based on this assessment, none of the quantifiable criteria were satisfied (0% out of a maximum of
115%) and the degree of achievement of qualitative criteria is 53% (out of a maximum of 55%) of the annual fixed compensation owed to Jacques Aschenbroich for the financial year ended December 31, 2018. The Board of Directors therefore decided that Jacques Aschenbroich's variable compensation for 2018 is equal to 53% of his annual fixed compensation owed for that financial year, i.e. EUR 530,000 (versus EUR 1,279,000 in 2017, representing a 59% drop) out of a maximum percentage of 170% of fixed compensation that variable compensation can represent for that financial year.
The failure to satisfy the quantifiable criteria described in the table below comes in the context of a complex operating environment for the Group in 2018, a year during which the automotive industry was affected by a number of disturbances (notably, WLTP standards in Europe, the market slowdown in China, raw material price hike). It should also be noted that for these same reasons, no performance shares allotted to Jacques Aschenbroich under the 2016 Performance Share Plan will vest.
The following table summarizes the applicable quantifiable and qualitative criteria, the degree of achievement of each quantifiable criterion, the entitlement relating to each of these criteria in terms of percentage of annual fixed compensation, and the maximum variable compensation for the financial year ended December 31, 2018:
