SFIL Annual financial report 2018

Management report I 1 37 Annual Financial Report 2018 SFIL Management report Report on corporate governance Consolidated financial statements in accordance with IFRS Annual financial statements in accordance with French GAAP Shareholders’ Meeting of May 29, 2019 General information 1. Social information 1.1 – JOB-RELATED INFORMATION 1.1.1. Total headcount and breakdown of employees by gender, age and site SFIL had a total of 388 employees as of December 31, 2018. In 2018, SFIL hired a total of 72 people, including 29 under permanent contracts, 14 under temporary contracts and 25 under work-study contracts. It also took on four interns on work placement schemes. 1.1.1.1. Employee breakdown by gender Headcount 2017 2018 Men 227 219 Women 178 169 TOTAL 405 388 Social, environmental and societal information In the second half of 2018, SFIL strengthened its commitment to social and environmental responsibility by joining the United Nations Global Compact. As part of this pledge, SFIL has undertaken to integrate into its corporate strategy and daily activities the Compact’s ten universal principles, which revolve around four main themes: human rights, international labor standards, the environment and the fight against corruption. 1.1.1.2. Employee breakdown by age and grade Year 2018 <25 years 25 to 29 years From 30 to 34 years From 35 to 39 years From 40 to 44 years From 45 to 49 years From 50 to 54 years From 55 to 59 years 60 years and older Total Managers 3 21 54 53 68 57 44 29 8 337 Non-managers 31 5 1 5 3 0 3 3 0 51 TOTAL 34 26 55 58 71 57 47 32 8 388 1.1.1.3. Employee breakdown by site 2017 2018 Issy les Moulineaux 384 370 Lyon 21 18 TOTAL 405 388 1.1.2. Changes in staff under permanent and temporary contracts 2017 2018 Hired under permanent contracts 13 20 Net switched to permanent contracts 4 9 Layoffs/terminations from permanent contracts 6 8 Resigned from permanent contracts 15 18 Switched from temporary to permanent contracts 5 9 Hired under temporary contracts (incl. work-study) 50 39 Layoffs/resignations from temporary contracts 6 4 Retired from permanent contracts 1 2 End of permanent/temporary contract probationary period (incl. work-study) 3 3 Expired temporary contracts 29 29 1.1.3. Compensation 1.1.3.1. Compensation policy SFIL’s Compensation Committee reviews all items related to the compensation policy. Its proposals are submitted to SFIL’s Board of Directors, which decides on the appropriate meas‑ ures and approves the compensation policy. SFIL defines its compensation policy in accordance with five key principles. The compensation policy must: •  be in line with market practices; •  be transparent; •  comply with regulations; •  ensure equal opportunities; •  ensure a balance between fixed and variable compensa‑ tion and motivate employees. This approach relates to both fixed compensation (not performance-related) and variable compensation (perfor‑ mance-related) and its general principles apply to all employ‑ ees. One such principle is ensuring a balance between fixed and variable compensation, which is aimed at discouraging excessive risk-taking and encouraging a sufficiently flexible and coherent variable compensation policy at SFIL. 1.1.3.2. Cap on variable compensation By virtue of the transposition into French law of the meas‑ ure to cap the variable compensation of bank staff, adopted at the European level on April 16, 2013 (CRD IV approved in 2013 for application in 2015 in respect of 2014), variable compensation for a given year cannot exceed 100% of fixed compensation. 1.1.3.3. Compensation of the Chief Executive Officer Pursuant to the provisions of decree 1953, amended by decree No. 2012-915 of July 26, 2012 relating to government control of executive pay in public companies, which apply to SFIL, a chief executive officer’s annual gross compensation may not exceed EUR 450,000. On this basis, the compensation of SFIL’s Chief Executive Officer is proposed by the Compensation Committee for the approval of the Board of Directors, subject to the authoriza‑ tion of the Minister for the Economy. 1.1.3.4. Compensation paid to members of the Executive Committee, the General Auditor and individuals whose professional activities have a material impact on the Company’s risk profile SFIL’s compensation policy contains special provisions applicable to a clearly identified group of people whose duties may impact SFIL’s risk profile. These people are the members of the Executive Commit‑ tee, the General Auditor, financial market professionals, sen‑ ior managers or staff with managerial responsibilities within