Session 8.1 How to Put in Place a Worldwide Free Share Plan for 110,000 Employees

8/6/2019 Session 8.1 How to Put in Place a Worldwide Free Share Plan for 110,000 Employees

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How to put in place aworldwide free share plan

for 110,000 employees

Frank PotardGlobal Head Comp&Ben, AXA

[email protected]

AXA MilesMaking every employee a shareholder


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AXA conquers the world

AXA consolidates andprofessionalizes

2001 - 20041992 2000

Sell off non-core business

AXA Way/six -sigma to encourageconsistency and reduction of costs

Launch of international platforms

Selected external growth

Additional focus on organic growthmaximizing value

2012 goal to become the Preferredcompanyamong stakeholders

2005 2012 (And Beyond)

AXA sets a globalcustomer centered vision

Rapid external growth

Many large international and smalleracquisitions

Become No1 in France throughacquisition of UAP in 1997

Ambition 2012

Becoming the Preferred Company

To gain the preference, we need to stand outfrom the crowd in these three areas

The third is an outcome of the first two

For ClientsCustomer

Centricity

For EmployeesMutual

Commitments

For Shareholders Value Creation


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Objectives

Celebrate our progress towards Ambition 2012

Foster our collective confidence in the future

Further engage every employee in the 2012 company journey

Contribute to answer the Whats in it for me ? question

Connect with Passport 2012 and the Employee Value Proposition

Global, simple and symbolic scheme, in addition to existingremuneration packages

Seek to create a significant employer brand differentiation, by makingevery employee a shareholder

We are all part of the journey.

Everybody is a sailor, nobody is a passenger

Becoming a Preferred Employer

Although separate, the two programs dovetail seamlessly with one another

Both of them are serving Ambition 2012 and helping make AXA a preferredemployer

While Passport 2012 focuses on how individual contributions are linked to ourcollective performance, the AXA Miles program provides every individualemployee with an opportunity to benefitfrom our collectivesuccess

Passport 2012

Gett ing each member of staff on board for

the shared journey towards 2012 means thateveryone must understand their role withinAmbition 2012 and must be able to see howtheir own contributions are linked to

progress made by AXA.Passport 2012 provides an opportunity tostrengthen the two-way relationship betweeneach employee and the company, and tosatisfy mutual expectations.

AXA Miles

The AXA Miles program aims to meet twogoals:

- Celebrating the progress made byAXA

- Symbolizing our collective confidence inthe future

By making every employee a shareholder

Employee Value Proposition


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AXA Miles program 2007

Award date : July 1st, 2007

Individual award : 50 AXA Miles

2+2 Plan :

2-yearacquisition period : July 1st, 2007 July 1st, 2009 Conversion of 50AXAMiles into 50AXA shares : July 1st, 2009

2-yearrestriction period : July 1st, 2009 July 1st, 2011

24 countries : Algeria, Bahrain, Cameroon, Czech Republic, France, Greece,Hungary, India, Indonesia, Italy, Ivory Coast, Morocco, Oman, Panama,Poland, Portugal, Qatar, Saudi Arabia, Singapore, Slovakia, Spain,Switzerland, Turkey, UAE

4+0 Plan :

4-yearacquisition period : July 1st, 2007 July 1st, 2011 Conversion of 50AXAMiles into 50AXA shares : July 1st, 2011

No restriction period

Other 30 countries


Award Conversion

July 1st, 2007 July 1st, 2009

Acquisition period

July 1st, 2007

2+2

Plan

4+0

Plan

July 1st, 2011

Award Conversion

Restriction periodAcquisition period

July 1st, 2011

50

AXA Miles

50

AXA Shares

50

AXA Miles

50

AXA Shares


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Rules in case of departure

During the acquisition period :

Death or permanent disability : AXA Miles convert immediately to AXA shares

which can be freely disposed

Retirement : AXA Miles are maintained and convert to AXA shares at the end

of the acquisition period. The restriction period (in case of a 2+2 plan) applies.

Any other reason (resignation, termination, divestiture) : AXA Miles are lost

During the restriction period (in case of a 2+2 plan) :

Death or permanent disability : AXA shares can be freely disposed

Any other reason : AXA shares cannot be disposed before the end of the

restriction period

Communication plan

MARCH

JU

NE

June: global communications campaign targeting all employees

Local communication based on communications tools provided by Group HRandGroup InternalCommunications

1. Communications kit : sent to HR and communications professionals andpublishedon the ComWeb and Global HR Network

2. DVD pack with 2 films, 2 explanatory leaflets and 1 toolbox containinggraphics:sent out to HR andcommunications managers

JULY

NOV.

November: individual communication to eligible employees

AXA Miles award certifi cate sent to each eligible employee

May 14, 2007 : AXA annual Shareholders meeting

Group communications confirms shareholder approval

Information published online: axa.com / ComWeb / Global HRNetwork

Information relayed within companies

July 1, 2007: award of AXA Miles

Global Group communications relayed by companies Information published: ComWeb / Global HR Network

March 27, 2007 : CEO letter to all employees

AXA Miles concept, subject to shareholder approval

MAY


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Results

AXA Miles database

In accordance with applicable French legislation, the award of AXA Miles to aBeneficiary is subject to an individual grant by the Management Board of theCompany

It was therefore necessary to identify each beneficiary and create a global AXAMiles database

Group HR and AXA Group Solutions have been designing a simple reportingtool (Excel)

Companies have been requested to submit by end of July 2007 the list of their

eligible employees as at July 1st, 2007

Lists have been checked and consolidated during August/September

The final list of beneficiaries has been closed on September 17 th, 2007

Individual AXA Miles award certificates (Boarding Pass) have been issued andsent out on November 7th 2007


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AXA Miles boarding pass

Jean DUPONT

AXA France


IfAXA meets the following objectives by the end of 2008 :

Underlying earnings per share : 2.41 (1.91 in 2006)

Customer scope index : 82 (79 in 2006)

a new AXA Miles program will be launched in 2009 :

Grant date : July 1, 2009

Individual award : 50 AXA Miles

AXA did not meet these objectives in 2008

Actual underlying earnings per share : 1.83

Customer scope index : 81.7

No new grant of AXA Miles in 2009

AXA Miles program in 2011, based on 2010 objectives


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Thank you

Session 8.1 How to Put in Place a Worldwide Free Share Plan for 110,000 Employees

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