Groupe Renault - 2020 Universal Registration Document

205 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 02 OUR SOCIAL COMMITMENT GROUPE RENAULT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY CORPORATE GOVERNANCE FINANCIAL STATEMENTS RENAULT AND ITS SHAREHOLDERS ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021 ADDITIONAL INFORMATION The variable part of the compensation of managers and executives is calculated according to the following principles: the higher the level of responsibility, the higher the percentage of P variable compensation; a single model for the variable portion of compensation P recognizing the performance of the employee and the Group in a spirit of solidarity. The compensation of senior executives is discussed in section 3.2. Group profit-sharing d) Renault has an incentive scheme for employees in France that includes the redistribution of Groupe Renault profits as well as bonus payments for contributions to site performance. On the Group side, Renault has for the first time introduced a non-financial criterion, namely compliance by 2020 with the European CAFE (Corporate Average Fuel Economy) regulation for reducing CO 2 emissions. 2020 FINANCIAL YEAR The agreement of July 3, 2020, signed for 2020 and which was paid to employees in March 2021, includes, as for previous agreements, two components: profit-sharing linked to the Group’s operating margin; P local incentive schemes based on site performance. P Over the past three years, profit-sharing and performance-related bonuses at Renault s.a.s totaled the following amounts: Year (€ million) Aggregate amount: financial incentive + performance-related bonuses 2018 170.7 2019 176.4 2020 121.5 Employee stock ownership and savings e) SRI portfolios are selected on the basis of the issuer’s employment policies, working conditions, corporate governance, and compliance with environmental standards. Employees can make top-up payments into these seven savings funds and the Action Renault Fund throughout the year. In France, Renault operates a voluntary company savings plan open to all subsidiaries that are more than 50% owned. The plan consists of seven employee mutual funds (FCPE) invested in accordance with socially responsible investment (SRI) standards and endorsed by the Labor Union Employee Savings Committee (Comité Intersyndical de l’Épargne Salariale), and two FCPE funds invested in company stock (Renault share, ISIN code FR0000131906). The securities held in the In 2020, the total amount of incentives invested in the schemes was €63.48 million, a decrease of 24.66% since 2019. In addition, the total payments in 2020 amounted to €74.39 million. On July 1, 2020, Renault transformed its collective retirement savings scheme (Perco) into a company collective retirement savings scheme (Pereco), enabling employees to build up savings that will be available in the form of annuities or a lump sum when they retire. With this system, employees can pay their profit-sharing bonuses, voluntary payments (whether tax deductible or not, and with an additional contribution from Renault) or part of their individual time savings leave (CTI, up to 10 days per year) into the plan. In addition, Renault contributes the equivalent of 30% of the CTI days paid into the plan. Employees can choose between free management of their savings, the funds proposed as part of the selected Group savings plan (with the exception of the Company share ownership funds) or management through the generational funds in the BNP PARIBAS PERSPECTIVES range. In 2020, total payments into Renault’s Group retirement savings scheme amounted to €14.80 million, of which 28.38% came from the cash-out of paid leave. The total value of Renault’s company savings plans at December 31, 2020 was €888.41 million (see Appendix 2.6.2). Since December 2015, BNP PARIBAS E&RE has managed the Company savings plan and Pereco for Renault. Control of labor costs f) The Group’s labor costs stood at €6,157 million in 2020, of which €5,453 million was for the Automotive division. They were down compared to 2019, thanks to the Group’s actions to adapt to the crisis in the automotive markets as well as productivity and streamlining efforts. The “11 major countries” (Argentina, Brazil, Slovenia, South Korea, Spain, France, India, Morocco, Romania, Russia and Turkey) represent 90.2% of the Group’s payroll costs. Labor costs by Region 2018 2019 2020 Average cost 2020 GROUP 6,702.6 6,705.7 6,157.0 35.2 Europe* 4,718.2 4,686.2 4,438.9 62.3 o/w France 3,548.5 3,473.64 3,099.0 65.8 Eurasia 1,051.8 1,103.2 933.7 12.8 o/w AVTOVAZ 460.5 466.1 403.9 8.9 Americas 399.8 374.8 273.5 24.3 China 0.4 0.4 20.8 41.1 Africa – Middle-East – India – Pacific 532.4 541.1 490.1 25.8 Europe including Renault-Nissan Global Management. *