SCAN THE ECO – As with every starting big boss, the question of severance and retirement hat arises. Focus on the future ex-CEO of the largest insurance company in France, who has spent 27 years at Axa, including 17 at its head.
A page turns at Axa Monday. At 61, Henri de Castries, who signed its 27th year of service with the French insurance giant, including 17 years as CEO, announced his departure on Monday morning, when his term ran until 2018 . time is the balance sheet of this “formidale captain of industry”, as described this morning Pierre Gattaz, head of Medef
“PORTRAIT -. Henri de Castries, the technocrat became captain of industry
• A crude million supplementary retirement, a year
According to the latest annual report by the group Axa (this is the one of 2014), from page 113 to page 140, chapter “Transparency of remuneration and participation in the capital of directors” provides some information. Regarding the Retirement hat (or the extra pension) Henri de Castries, one learns that it would amount to a little more “ 1 million euros gross before taxes and social charges ‘, given his seniority in the group over 25 years. An estimate calculated as follows: 32% of annual compensation “target” of the CEO or, as in 2014 -and since 2010- 3.3 million. In the coming days, Axa will publish its annual report for 2015, in which new data will adjust the calculation. Note Axa says in its annual report that since 2010, the amount of the retirement hat was limited by Henri de Castries himself.
Henri de Castries affect his supplementary pension when actually take retirement: 61 years, he has accumulated the necessary quarters, but it seems that the person is not ready to leave the world of work, given the rumors already suggest a possible taking office management to HSBC. “This will be to monitor whether Henri de Castries does not reproduce the scenario Henri Proglio had produced when he left for Veolia EDF, touching one hand a hat pension and other remuneration .. . What had rightly, is controversial, “says Loic Dessaint, associate director at Proxinvest.
• A retreat “normal” in
The question of remuneration of the major outgoing bosses in France -subject very sensitive in France (case Philippe Varin, PSA or Michel Combes at Alcatel-Lucent are revealing recent examples) – is the subject of a “code of conduct” on corporate governance: these are the recommendations of the AFEP -MEDEF. Thus, according to these attitudes big bosses deemed suitable, Henri de Castries gave up (again in 2010) to his employment contract. A waiver which however did not result in jeopardizing his rights in terms of social protection (health insurance, provident, retirement, etc.)
“THE ECO SCAN. – What does the code good behavior patterns on their earnings
to get an idea of what to hit Henri de Castries recent years: he received a fixed total remuneration of up to 800,000 euros per year on average since 2007 and an average variable compensation of € 2.3 million over the same period, according to calculations by Proxinvest.
In 2014, Henri de Castries affected approximately total compensation of 5.4 million euros. What made him the seventh boss of the CAC 40 best paid this year, according to Proxinvest ranking of the highest paid CEO in France.
“In the insurance sector, the big bosses have always been very well paid. Henri de Castries is within the average compensation for the top managers of insurance in Europe. Admittedly, Switzerland and Great Britain, the salaries are much higher, but in contrast, they are much less so in the Scandinavian countries and Japan for example, “says Loic Dessaint, Proxinvest.
• A priori, no severance payments
According to Axa documents, compensation in case of termination of a function direction is due, “unless gross negligence or misconduct, only to the revocation or non-renewal of term or resignation within 12 months of a change of control or strategy unsolicited by the recipient society ( that is not the case at Axa, Ed). ” But Henri de Castries announced Monday it had “decided to leave his post on 1 September”. So there seems to be a resignation. Severance pay should therefore not be due.
While waiting to learn more about the contractual terms of his departure, whether it was due, the severance pay would be paid according to the terms of performance (see page 140 of the annual report). “The initial amount of compensation (is) 19 months of average fixed and variable compensation received during the 24 months preceding the termination of his duties,” the report said. We do not yet know the compensation of Henri de Castries 2015, but in 2013 and 2014, he won, in fixed and variable (excluding shares and stock options), a little over 3.5 million. If 2015 was stable, the initial payment would be approximately 5.5 million euros . To which is added 24 months (by seniority bound ceiling) additional compensation or 6.9 million euros . Totalling: almost € 12.5 million
• No non-competition payments
According to the 2014 annual report. the Axa group Henri de Castries will not receive compensation on a non-compete clause. In other words, it may take a new position at a competitor without obstacles. Table extracted from the annual report of Axa released in 2015 on the results of 2014
• 29.7 million euros of “heritage” in action
throughout his career, Henri de Castries was awarded shares and stock options. On 31 December 2014, and it held nearly 1.5 million shares for an amount of € 29.7 million (over to date of 19.21 euros) and 3.1 million options, “for which it is difficult to make a recovery, says Loic Dessaint,
• What about the performance of Henri de Castries at Axa?
Henri de Castries joined Axa in 1989. in 2000, the owner of the insurance company Claude Bébéar aside for him, calling him a “good manager”. Today, AXA is 161,000 employees (just under 100,000 full-time equivalent), 103 million customers in 59 countries worldwide. The French insurer is French number 1 and number 2 in Europe, behind Allianz.
In 2015, the net group profit reached 5.61 billion euros (up 12%). Historic levels. As for turnover, it is almost 100 billion euros (98.5 billion exactly). This year 2015 marks the end of the plan “Ambition AXA” Henri de Castries door for 5 years. “You could say, in the light of these figures and the proper evolution of market prices of the share Axa, Henri de Castries has accompanied the creation of a global insurance giant. He did a good job during the great crises of 2000 and 2008: the group has not been affected too. He was a good student, “tench Loic Dessaint.
No comments:
Post a Comment