Universal Registration Document 2019

111 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Corporate Social Responsibility 4 make voluntary contributions. Benefits granted to employees are recognized on the income statement and measured according to IFRS 2. As of December 31, 2019, the PEG consisted entirely of LISI shares, for a total of 770,000 shares, and had 2,644 members. The percentage of share capital thus held by the Group’s employees stood at 1.4%. ■ A Group collective pension fund (PERCO) was established in 2019 to allow employees who wished to do so to prepare their retirement. A matching contribution is available for the contribution of unused leave days. ■ The Supplementary Defined Contribution Pension Scheme (dubbed “Art. 83”) consists in the employer paying amonthly contribution to a mutual fund open on behalf of employees to enable them to build up retirement savings. Employees may make voluntary payments or allocate days off to increase the amount of these savings. Upon retirement, the resulting savings are converted into an annuity. Employees then receive additional income throughout their retirement. Internationally, executives or holders of key positions in the organization receive an international share award program conditional on the medium-term performance of the Company. Thismethod of variable remuneration enables them to partner closely with the Company’s performance results over several years. a) Free share plan To reward certain employees who have spent the majority of their careers with the LISI Group and who have actively participated in its development, the Board of Directors, acting with the authorization of the Shareholders’ General Meeting, decided to award, without any conditions, free LISI shares. 2018 plan: The Board of Directors, in its December 12, 2018, meeting, acting under the authorization of the Extraordinary Shareholders’ General Meeting of December 1, 2015, decided to award, without any conditions, 4,000 free LISI S.A. shares distributed between two salaried Group employees. 2019 plan: The Board of Directors, in its meeting of December 11, 2019, acting under the authorization of the Extraordinary Shareholders’ General Meeting of December 26, 2019, decided to award, without any conditions, 400 free LISI S.A. shares distributed between two salaried Group employees. b) Performance shares plan The plans described below refer to the NAV criterion to measure the Group’s performance. RNA designates the Revalued Net Assets of the LISI Group as defined in paragraph 3.2 “Accounting principles and policies – Indicators” of Chapter 2 – “Consolidated financial statements.” 2017 plan: On December 13, 2017, on the proposal of the Compensation Committee, and under the authorization of the Extraordinary General Meeting of December 1, 2015, LISI’s Board decided to award performance shares to the members of the Executive Committee and to the members of the main Management Committees of the LISI Group’s three divisions, subject to the achievement of all or part of the following performance criteria: Net Asset Value (NAV) of at least €1,701 million at December 31, 2019. If the RNA is between €1,701 million and €1,969 million, the shares would be partially allocated according to a percentage defined by the Board of Directors. If the RNA is between €1,969 million and €2,307 million, the shares would be partially allocated according to a progressive percentage defined in the rules of the allocation plan. If the Net Asset Value is higher than €2,307million, the shares would be allocated in full. The maximum allocated number of shares is 154,660 shares and concerns 230 employees in France and abroad. With regard to the corporate officers, the Board of Directors decided that they should retain in registered form 20% of the free shares that may have been allocated to themuntil the end of their employment. In its meeting of February 19, 2020, the Board of Directors, following deliberations and having noted the stabilization in the RNA (Revalued Net Assets) value between 2016 and 2019, unanimously validated the recommendations of the Compensation Committee and decided to allocate a fixed number of 100 shares to each beneficiary. 2018 plan: On December 12, 2018, on the proposal of the Compensation Committee, and under the authorization of the Extraordinary General Meeting of December 1, 2015, LISI’s Board decided to award performance shares to the members of the Executive Committee and to the members of the main Management Committees of the LISI Group’s three divisions, subject to the achievement of all or part of the following performance criteria: Revalued Net Assets (RNA) of at least €1,767 million at December 31, 2020. If the RNA is between €1,767 million and €1,850 million, the shares would be partially allocated according to a percentage defined by the Board of Directors. If the RNA is between €1,850 million and €2,000 million, the shares would be partially allocated according to a gradual percentage defined in the rules of the allocation plan. If the Net Asset Value is higher than €2,000million, the shares would be allocated in full. The maximum allocated number of shares is 156,590 shares and concerns 240 employees in France and abroad. With regard to the corporate officers, the Board of Directors decided that they should retain in registered form 20% of the free shares that may have been allocated to themuntil the end of their employment.