Compensation for financial year 2015

2015 Compensation

 

 

 

Annual incentive2

Performance shares7

Share options8

 

 

Total 2015

Total 2014

Name

Position

Base Salary
(in CHF)6

H1 2015 (in CHF)

H2 2015 (in CHF)

Number

Fair value (in CHF)

Number

Fair value (in CHF)

Pension contributions1

Other

1

The contributions to pension plans also include the employer’s contributions to Swiss social security (AHV/IV).

2

including retention award.

3

Senior-management in 2014: Members of the Executive Committee and Area-Managers and Corporate Functional Managers.

4

Highest paid Individual.

5

Total Executive Committee Compensation without leavers in 2015 would amount to CHF 30.4 million.

6

Base salary including housing and relocation allowances.

7

Value per share CHF 49.12 at 14 December, date of grant.

8

Stock option value of CHF 10.1042 determined using a Black-Scholes valuation model at 14 December 2015, date of grant.

Eric Olsen

CEO (from July 10, 2015)

847,469

N/A

837,000

55,227

2,712,750

122,727

1,240,058

132,000

12,278

5,781,555

N/A

Bernard Fontana4

Former CEO (until July 10, 2015)

1,750,000

4,969,574

N/A

N/A

N/A

N/A

N/A

781,000

476,141

7,976,715

5,239,905

Other Executive Committee members

 

9,688,450

7,948,598

2,555,000

148,839

7,310,972

334,509

3,379,946

4,725,000

227,035

35,835,001

N/A

Total Executive Committee

 

12,285,919

12,918,172

3,392,000

204,066

10,023,722

457,236

4,620,004

5,638,000

715,454

49,593,2715

32,295,0313

The table above reflects the pre-merger compensation paid to Bernard Fontana and the Holcim Ltd Executive Management team, followed by the post-merger compensation paid to Eric Olsen and the LafargeHolcim Executive Committee.

The total annual compensation for the members of the Executive Committee (including CEOs) amounted to CHF 49.6 million (2014: 32.3). This amount comprises base salaries and variable cash compensation of CHF 24.7 million (2014: 19.6), share-based compensation of CHF 18.6 million (2014: 5.0), employer contributions to pension plans of CHF 5.6 million (2014: 7.2) and “other” compensation of CHF 0.7 million (2014: 0.5).

The CEO (Eric Olsen) received a combined base salary plus variable compensation in cash of CHF 1.7 million (compared with Bernard Fontana in 2014: 3.8), share-based compensation of CHF 4.0 million (2014: 1.0), and employer contributions to pension benefits of CHF 0.1 million (2014: 0.5). As a result, the CEO total compensation amounted to CHF 5.8 million (2014: 5.2).

Long-term variable compensation

The following table presents the Performance Shares and Market Value options that have been granted in 2015 to the Chief Executive Officer and the Members of the Executive Committee, as well as the total fair value based on a valuation model at the date of grant determined by an external consultant (PricewaterhouseCoopers).

Beneficiaries

Normal Award (Performance Shares)

Integration Award (Options)

Fair value
(in CHF 1,000)

Eric Olsen (CEO)

55,227

122,727

3,953

Total Executive Committee

204,066

457,236

14,644

Compensation of former members of governing bodies

In the year under review, compensation in the amount of CHF 0.2 million (2014: 3.5) was paid to six (2014: six) former members of the Senior Management.

Non-Executive Director Compensation

Director compensation policy

Non-executive directors’ fees have been set at a level that allows for the attraction and retention of the appropriate caliber of individuals with global experience. The members of the Board of Directors receive a fixed fee, paid in cash and LafargeHolcim shares, subject to a five-year sale and pledge restriction period. The Chairman and Vice-Chairman of the Board of Directors and Chairmen and members of the Committees receive additional compensation. Non-executive directors do not receive any performance-based compensation.

Position

Cash compensation (in CHF)

Share-based compensation (in CHF)

Expense allowance (in CHF)

Secretarial allowance (in CHF)

 

 

 

 

 

Annual base compensation

Chairman of the Board of Directors

1,250,000

500,000

10,000

60,000

Vice-Chairman of the Board of Directors

350,000

100,000

10,000

 

Co-chairman of the Board of Directors

100,000

100,000

10,000

 

Member of the Board of Directors

100,000

100,000

10,000

 

 

 

 

 

 

Committee membership and chairmanship fees

Finance and Audit Committee Chairman

125,000

 

 

 

Finance and Audit Committee member

40,000

 

 

 

Nomination, Compensation and Governance Committee Chairman

90,000

 

 

 

Nomination, Compensation and Governance Committee member

40,000

 

 

 

Strategy and Sustainable Development Committee Chairman

50,000

 

 

 

Strategy and Sustainable Development Committee member

30,000

 

 

 

Compensation for financial year 2015

In 2015, sixteen non-executive members of the Board of Directors received in total a remuneration of CHF 5.5 million (2014: 3.7) of which CHF 3.8 million (2014: 2.3) was paid in cash, CHF 0.1 million (2014: 0.1) was granted in the form of post-employment benefits, and CHF 1.4 million (2014: 1.0) was paid in shares. Other compensation paid totaled CHF 0.2 million (2014: 0.2).

Compensation for financial year 2015

 

 

Positions

 

 

Shares

 

 

 

 

Name

Date of Board nomination (if in 2015)

Board

FAC

NCGC

SSDC

Date of stepping down from the Board

Cash (in CHF)

Number

Value4

Pension contributions

Other (in CHF)

Total 2015

Total 2014

FAC: Finance & Audit Committee, NCGC: Nomination, Compensation and Governance Committee, SSDC: Strategy & Sustainable Development Committee

C: Chairman, CC: Co-Chairman, VC: Vice-Chairman, : Member

 

1

Was Chairman of the Nomination and Compensation Committee until July 10.

2

Was a Nomination and Compensation Committee member until July 10.

3

Was member until July 10, 2015

4

Was Chairman and member until July 28, 2015.

5

Since July 28, was a Committee member before.

6

Was member until July 28, 2015.

7

The shares were valued at the aver age market price in the period fr om January 1, 2016 to February 15, 2016 and ar e subject to a five-year sale and pledge restriction period.

8

, 9, 10 and 11 includes, respectively, CHF 653,333, CHF 150,000, CHF 50,000 and CHF 50,000 in fees paid in relation to the exceptional time commitment related to the merger.

Wolfgang Reitzle

 

C

 

C3

 

1,718,6117

9,687

405,000

 

60,000

2,183,611

935,637

Bruno Lafont

July 10

CC

 

 

 

 

47,222

1,129

47,222

 

5,000

99,444

Beat Hess

 

VC

 

 

570,0008

2,392

100,000

32,082

10,000

712,082

512,632

Bertrand Collomb

July 10

 

 

 

66,111

1,129

47,222

2,292

5,000

121,305

Philippe Dauman

July 10

 

 

 

 

47,222

1,129

47,222

 

5,000

99,444

Paul Desmarais, Jr.

July 10

 

C

 

89,723

1,129

47,222

 

5,000

141,945

Oscar Fanjul

July 10

 

 

 

77,917

1,129

47,222

 

5,000

130,139

Alexander Gut

 

C

 

 

 

275,0009

2,392

100,000

10,000

5,000

390,000

327,227

Gérard Lamarche

July 10

 

 

80,278

1,129

47,222

 

5,000

132,500

Adrian Loader

 

 

1

 

 

214,02810

2,392

100,000

 

10,000

324,028

264,166

Jürg Oleas

 

 

 

 

July 10

58,333

1,262

52,778

 

5,833

116,944

140,001

Nassef Sawiris

July 10

 

 

 

61,389

1,129

47,222

 

5,000

113,611

Thomas Schmidheiny

 

 

2

 

 

119,305

2,392

100,000

8,871

10,000

238,176

266,752

Hanne Sorensen

 

 

3

 

 

135,833

2,392

100,000

 

10,000

245,833

223,661

Dieter Spälti

 

 

C5

 

180,556

2,392

100,000

14,898

10,000

305,454

271,147

Anne Wade

 

 

 

6

July 10

75,833

1,262

52,778

5,000

10,000

143,611

220,328

Total

 

 

 

 

 

 

3,817,361

34,466

1,441,110

73,823

165,833

5,498,127

3,161,551