TF1 announced in a statement the retirement package granted to its CEO, Nonce Paolini.
He will benefit from a double system: firstly a yearly supplementary pension of € 186,700 and secondly a retirement allowance accordingly to the collective labour agreement. TF1 controlling shareholder, Bouygues, will invoice TF1 € 1,315,000 for the latter.
Proxinvest believes that it is not good practice to grant retirement allowance to a chairman-CEO of a listed company. French collective labour agreements should protect employees, not helping chairmen-CEO to be granted additional indemnities when leaving the group. In the case of Nonce Paolini, it does not seem reasonable to grant such retirement indemnities as ther eis absolutely no damage assoicated with retirement and he has been decently paid for many years (€ 920,000 of base salary + € 1.38 million of annual variable remuneration related to FY 2014). Thta's exactly why the French AFEP-MEDEF corporate governance Code states that "It is recommended, where an employee becomes executive officer of the company, to terminate the employment contract binding him to the Company."
According to Proxinvest voting policy, a retirement allowance is acceptable only if it is not combined with a supplementary pension scheme. Consequently TF1 does not respect Proxinvest recommendation.
