2020 Universal registration document and annual financial report - BNP PARIBAS 77
2CorPorate GovernanCe and internal Control
2
Report on Corporate governance
performance of their respective areas of responsibility based on the following equally weighted criteria:
■ ratio of net earnings per share for the year to net earnings per share for the previous year (18.75% of target variable remuneration);
■ achievement of the Group s budgeted gross operating income (18.75% of the target variable remuneration);
■ change in pre-tax net income for the year compared to the previous year for their respective areas of responsibility (18.75% of the target variable compensation);
■ achievement of the budgeted gross operating income of their respective areas of responsibility (18.75% of the target variable compensation).
Criteria linked to the Group s CSR performance A portion of 10% of the target variable remuneration is linked to the Group s CSR performance.
The allocation of this portion of the annual variable remuneration is based on multi-criteria measurement based on a holistic approach of actions undertaken by the BNP Paribas Group outside the Company with respect to social, societal and environmental issues.
With this in mind, this remuneration structure includes three weighted criteria, each at 3.33%:
(i) the Board of directors assessment of the year s highlights, primarily with regard to climatic and social challenges;
(ii) publications of extra-financial rating agencies measuring the quality of the BNP Paribas CSR positioning relative to its peers;
(iii) an alignment with the CSR objectives included in the remuneration due to retention plans granted to the Group s key employees.
75% Group Financial Performance
10% Group s CSR Performance
(i) By the Board
Positioning of BNP Paribas in the top quartile of the Banks sector in the
extra-nancial performance rankings of FTSE, SAM and Vigeo Eiris
Annual measurement by the Board of directors if achievements and key developments around a line of action
focused on climate and social challenges
Achievement of the three-year CSR objectives set for key Group
employees in the retention plan that expired during the year (basket of 9 indicators)
(ii) By the market (iii) Alignment with key employees of the Group
15% Qualitative criteria
Holistic assessment of CSR policy
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Qualitative criteria The portion of the variable remuneration linked to the Board of directors qualitative assessment is 15% of the target variable remuneration.
The Board of directors considers it essential to carry out this qualitative assessment, particularly given its enhanced responsibilities in terms of supervision and control pursuant to the French Monetary and Financial Code. In addition to the Bank s strategy, which it must approve by taking into account social and environmental issues, the Board of directors must
also assess the performance of Executive Management based on their capacities for anticipation, decision-making, leadership and exemplary behaviour.
To do this, the Board of directors assesses the qualitative portion of the annual variable remuneration in view of a persistently low interest rate environment, the implementation of the Bank s strategic guidelines, in particular the adaptation of the business model to the pandemic context and the resulting major organisational and human challenges.
