NOTE 28.5 EMPLOYEE PROFIT SHARING AND INCENTIVE PLANS
Proﬁt-Sharing Plan An amendment to the October 1984 employee proﬁt-sharing plan (participation), applicable solely to parent company employees, was signed in October 2000. Under this plan, a portion of the special employee proﬁt-sharing reserve set aside annually may be invested in equity securities, in a corporate savings plan. Consequently, beneﬁciaries may choose between ﬁve types of funds, one consisting exclusively of Lectra shares, at their discretion. There will be no proﬁt-sharing payment in 2015 in respect of ﬁscal year 2014, due to non-fulﬁllment of the threshold for payment. Likewise, there was no proﬁt-sharing payment in 2014 in respect of 2013. Incentive Plan – Proﬁt Sharing Bonus A collective employee incentive plan (intéressement), applicable solely to parent company employees, was signed for the ﬁrst time in September 1984 and renewed every year since that date. The most recent incentive plan signed in June 2014 covers the period 2014-2016. The cumulative incentive and proﬁt sharing bonus (prime de partage des proﬁts) amount in respect of ﬁscal 2014 equals to €1,633,000 (€1,340,000 in respect of 2013). For ﬁscal 2014, an interim payment of €541,000 was made in November 2014, the balance outstanding to be paid in the ﬁrst half of 2015.
NOTE 28.6 COMPENSATION OF GROUP MANAGEMENT
The Group management team consists of two executive directors: the Chairman of the Board of Directors and the Chief Executive Ofﬁcer; the Chief Financial Ofﬁcer, the Chief Human Capital and Information Ofﬁcer and, since January 1, 2014, the Executive Vice President, Sales. The executive directors (dirigeants mandataires sociaux) are not granted any special arrangement or speciﬁc beneﬁts concerning deferred compensation, severance compensation, or pension liabilities committing the company to pay any form of indemnity or beneﬁt in the event of termination of their functions, or at the time of their retirement (they are not under any employment contract to the company), or more generally subsequent to the termination of their functions. The company does not award them bonuses in any form. Compensation of members of the management team, executive directors or other, comprises a ﬁxed portion and a variable portion. In 2014, as in 2013, variable compensation for the Chairman of the Board of Directors, the Chief Executive Ofﬁcer, the Chief Financial Ofﬁcer and the Chief Human Capital and Information Ofﬁcer is set in accordance with four clear and complementary quantitative criteria (to the exclusion of any qualitative criteria) expressed in terms of annual targets, reﬂecting the company’s strategy of proﬁtable sales activity and earnings growth and determined according to clear criteria: – a criterion measuring the contributive value of growth in sales activity; – consolidated income before tax, excluding net ﬁnancial expenses and non-recurring items; – a criterion measuring the contributive value of recurring contracts; – consolidated free cash ﬂow excluding net ﬁnancial expenses, non-recurring items, income tax and after certain restatements of certain items. Variable compensation for the Executive Vice President, Sales is set in accordance with the ﬁrst three criteria only, to the exclusion of that on the consolidated free cash ﬂow.
160 – 2014 Financial Report
Consolidated ﬁnancial statements