CSR Criteria incorporated into Senior Executives’ Variable Compensation
Vivendi has fully integrated its CSR policy into its strategy and governance, as demonstrated by the specifi c criteria taken into account in the variable compensation of its senior executives. In accordance with its internal rules, the Supervisory Board examines the group’s corporate social responsibility policy on an annual basis. The Management Board informs the Supervisory Board of CSR policy results in a quarterly activity report (see more on “Cross-mobilization“, 2014 Annual report).
At the Shareholders’ Meeting held on April 30, 2009, the Chairman of Vivendi’s Supervisory Board announced that, starting in 2010, CSR objectives would be incorporated into the variable compensation of the Group’s senior executives. Vivendi was one of the first CAC 40 companies to adopt this policy.
For Vivendi’s senior executives, this means measuring their contribution to performance objectives linked to the strategic CSR issues common to all subsidiaries and directly related to their business. These objectives are established by each subsidiary in close coordination with Vivendi’s CSR and Human Resources departments, and are included in the overall assessment of senior executive performance. The non-financial rating agency Vigeo assists the group in this process. The Corporate Governance, Nominations and Remuneration Committee of the Supervisory Board assesses the performance of senior executives in relation to each CSR criterion and calculates the corresponding bonus percentage. In 2014, most of the objectives were reached or even exceeded by the group’s companies. The amount of compensation relating to these objectives can account for up to 10% of the variable portion. The objectives in question applied to 1,102 senior executives in Vivendi’s subsidiaries and headquarters.
Below are a few examples of the objectives reached in 2014 for each strategic issue:
- promoting cultural diversity: the pre-purchase of an agreed number of European low-budget or debut fi lms by Canal+; the increase in the number of women on air; GVT’s initiative aimed at raising the profile of local artists by broadcasting their music; increased investments by Universal Music Group to empower local talent in emerging markets;
- empowering and protecting young people: GVT’s development of Internet education programs and the provision of parental control tools; and
- fostering knowledge sharing: the contribution made by Canal+ to showcasing cinema heritage by restoring and digitizing major fi lms that have become inaccessible.
Given Vivendi’s shift in focus towards media and content, these objectives have been supplemented and now also address the issue of personal data protection. For fiscal year 2015, UMG and Canal+ Group have set the following CSR criteria:
- promoting cultural diversity:
- commitment by Canal+ to promoting local talent globally and to further increasing the inclusion of women experts on air as guests,
- empowermenting by UMG of local talent in emerging and developing markets;
- empowering and protecting young people:
- commitment by UMG to establish a forum bringing together the most important five countries in terms of activity. The purpose of the forum is to develop a guide to best practice in order to classify video clips by age rating or content descriptor and then to initiate a dialog with business partners to roll out the guide,
- promotion of this guide to best practices in all the countries where UMG is active; and
- valuating and protecting personal data:
- commitment by UMG to expand employee training in the area of personal data protection beyond those who are already trained (Legal, Customer Relations or Marketing departments),
- development of the training of Canal+ customer relations agents.