With each eviction or departure of a boss, a ritual question arises: how much is the amount of his golden parachute? No sooner was Emmanuel Faber disembarked by Danone’s board of directors than the publication of the 2020 annual report, Thursday, March 18, sheds light on this point. “By letter dated January 25, 2019, Mr. Emmanuel Faber terminated his employment contract (with effect from April 24, 2019) and waived the benefit of his severance pay. The non-compete indemnity ended concomitantly with his employment contract ”, specifies the reference document.
In other words, the deposed CEO of the food group is not entitled to any golden parachute. Knowing that he had also given up the benefit of his hat retirement. “Since April 24, 2019, Mr. Emmanuel Faber has only benefited from the defined contribution pension plan set up for the benefit of Danone employees”, specifies the report.
In 2020, Mr. Faber pocketed a fixed salary of 850,000 euros, down 30% from his usual salary “In a spirit of solidarity with regard to the Covid-19 health crisis”. To this was added 500,000 euros of variable compensation (against 1,025,000 euros the previous year), the manager not having achieved the objectives set by the board of directors in terms of turnover and margin. (i.e. 50% of this variable compensation).
In 2020, he was also allocated the equivalent of nearly € 2 million in Danone financial instruments as part of a long-term compensation plan but he should never touch them, not more than those allocated in 2018 and 2019 because their delivery is subject to presence. In 2020, Mr. Faber got his hands on the equivalent of 2 million euros of instruments that had been allocated to him in 2016.
If the report is very precise on these amounts, on the other hand, it is not indicated whether Mr. Faber will remain a director of Danone. Since March 14, he is no longer chairman or managing director, but his mandate as director runs until the general meeting of 2022. According to a person close to Danone, discussions are underway with the members of the board to assess the situation. This is a point on which Artisan Partners and Bluebell Capital, the two funds which campaigned for the departure of Mr. Faber, will necessarily be very vigilant.
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