2018 Registration document and annual fi nancial report - BNP PARIBAS242
4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
4
Notes to the fi nancial statements
7.d TERMINATION BENEFITS BNP Paribas has implemented a number of voluntary redundancy plans and headcount adaptation plans for employees who meet certain eligibility criteria. The obligations to eligible active employees under such
plans are provided for as soon as a bilateral agreement or a bilateral agreement proposal for a particular plan is made.
In 2016, in France, CIB activities in BNP Paribas SA and BNP Paribas Arbitrage have set up in their respective scope a 3-year voluntary redundancy plan (from October 2016 to December 2018).
7.c OTHER LONG-TERM BENEFITS BNP Paribas offers its employees various long-term benefi ts, mainly long- service awards, the ability to save up paid annual leave in time savings accounts, and certain guarantees protecting them in the event they become incapacitated. The net provision amounted to EUR 462 million at 31 December 2018 (unchanged from 31 December 2017).
As part of the Group s variable compensation policy, annual deferred compensation plans are set up for certain high-performing employees or pursuant to special regulatory frameworks. Under these plans, payment is deferred over time and is subject to the performance achieved by the business lines, divisions and Group.
Since 2013, BNP Paribas has introduced a Group loyalty scheme with a cash payment, at the end of a three-year vesting period, which fl uctuates according to the Group s intrinsic performance. The aim of this loyalty scheme is to make different categories of managerial staff partners in the Group s development and profi tability objectives. These personnel are representative of the Group s talent and the breadth of its managerial
framework i.e. senior managers, managers in key positions, line managers and experts, high-potential managers, high-performing young executives with good career development prospects and key contributors to the Group s results.
The amounts allocated under this plan are linked to changes in the Group s operational performance over three years (for 80%) and to the achievement of the Group s corporate social responsibility (CSR) targets (for 20%). These nine targets are in line with the four pillars on which the Group s CSR policy is based. In addition, the fi nal payment is subject to continuous service within the Group between the grant date and the payment date, provided that the Group s operating income and pre-tax income for the year prior to payment are strictly positive. For employees subject to special regulatory frameworks, this loyalty scheme is adjusted in accordance with the CRD 4 European Directive.
The net obligation related to deferred compensation plans and loyalty schemes amounts to EUR 579 million at 31 December 2018 (EUR 619 million at 31 December 2017).
In millions of euros 31 December 2018 31 December 2017
Net provisions for other long-term benefi ts 1,040 1,081
Asset recognised in the balance sheet under the other long-term benefi ts (80) (89)
Obligation recognised in the balance sheet under the other long-term benefi ts 1,120 1,170
In millions of euros 31 December 2018 31 December 2017
Provision for voluntary departure, early retirement plans, and headcount adaptation plans 380 389
