The Pro Forma Financial Information for the year ended December 31, 2015 reflects the merger of Holcim and Lafarge as if the Merger had occurred on January 1, 2015.
It reflects a hypothetical situation and is presented exclusively for illustrative purposes, as such it does not provide an indication of the results of operating activities that would have been obtained for the period ended on December 31, 2015.
Employment contracts for the Executive Committee
The contracts of employment of the Executive Committee are concluded for an indefinite period of time and may be terminated with one year’s notice. Contracts of employment do not include severance compensation.
Due to the merger, various members of the Lafarge S.A. Senior Management have been employed under similar contractual arrangements as the existing Holcim Ltd Members of Senior Management. However, in the event that LafargeHolcim Ltd terminates the employment of a former Lafarge Senior Management member within two years, the commitments from the former Lafarge French employment contract will be paid to such Senior Management member.
As mentioned in the 2014 remuneration report, the Holcim Nomination & Compensation Committee has put in place appropriate measures to retain certain members of the Executive Committee and Senior Management. Special compensation arrangements were implemented to incentivize individuals critical to the preparation of the merger. This concerns some senior managers who were likely to have roles post-merger as well as some who were likely not to have roles in the post-merger situation. In total, CHF 8.2 million was paid in respect of these arrangements in 2015 (2014: 2.9). No further payments are due under this merger-related scheme.