PSA Peugeot Citroën to Eliminate Its Defined Benefit Supplementary Pension Plan for Executives & Expects to Save €34 Milli...
16 Dezember 2015 - 7:00PM
Business Wire
Regulatory News:
On the recommendation of the Chairman of the Managing Board, the
Supervisory Board of PSA Peugeot Citroën (Paris:UG) has
approved the principle of ending the defined benefit supplementary
pension plan for members of the Managing Board and of the Group
Executive Committee.
A new scheme based on a defined contribution model will be put
in place. This means that the Company will no longer offer
guaranteed levels of retirement income, but will pay out an annual
benefit that is directly tied to the Group's results and
performance.
This new scheme will result in a €34 million saving – less the
transition costs – in PSA Peugeot Citroën's 2015
accounts. It will also be much less costly for the Group in the
longer term. For example, the expense corresponding to the Chairman
of the Managing Board will be reduced by more than two-thirds. In
addition, the Board has decided to redistribute the savings
generated by the new executive pension plan to all employees, to
top up existing compensation and profit-sharing schemes.
Consulted prior to the implementation of the plan, the
AFEP-MEDEF high committee on corporate governance ruled that this
plan complied with the recommendations set out in the AFEP-MEDEF
corporate governance code for listed companies. Shareholders will
vote on the related measures at the next Annual Shareholders'
Meeting in April 2016.
Commenting on the announcement, the Chairman of the Supervisory
Board said: "The Chairman of the Managing Board and I strongly
believe that it is essential to make changes to the supplementary
pension plan in the current economic climate. The new scheme will
be more transparent, less costly and more directly tied to the
Company's financial performance."
Information about the new pension scheme is available on the PSA
Peugeot Citroën website.
About PSA Peugeot Citroën
With its three world-renowned brands, Peugeot, Citroën and DS,
PSA Peugeot Citroën sold 3 million vehicles worldwide in 2014. The
second largest carmaker in Europe, PSA Peugeot Citroën recorded
sales and revenue of €54 billion in 2014. The Group confirms its
position of European leader in terms of CO2 emissions, with an
average of 110.3 grams of CO2/km in 2014. PSA Peugeot Citroën
has sales operations in 160 countries. It is also involved in
financing activities (Banque PSA Finance) and automotive equipment
(Faurecia).For more information, please visit
www.psa-peugeot-citroen.com
Communications Division - 75 avenue de la
Grande-Armée - 75116 Paris, France+33 1 40 66 42 00 –
psa-peugeot-citroen.com – @PSA_news
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Media contact : +33 1 40 66 42 00
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