TOULOUSE, France--(BUSINESS WIRE)--Regulatory News:
Latécoère (hereafter the ”Company”) (Paris:LAT) discloses hereafter the financial terms relating to Yannick Assouad’s departure, following the meeting of the Board of Directors dated March 17,2019 which decided Yannick Assouad’s dismissal from his position as Chief Executive Officer of the Company with effect dated March 17,2019.
Following the recommendation of the Appointments and Compensation Committee, the Board of Directors decided the following (in addition to the 2019 variable compensation decided by the Board of Directors on March 6, 2020 and which will be submitted to the 2020 shareholders’ meeting):
- Fixed Compensation
Mrs. Yannick Assouad fixed compensation of 550.000 EUR would be paid pro rata temporis until the date of termination of her duties.
- Variable Compensation
It is reminded that, pursuant to the decision taken by the Board of Directors on March 6, 2020, Mrs. Yannick Assouad 2020 variable compensation is composed with financial objectives and individual objectives.
Given the date of departure, which would take place in the beginning of the year 2020, the Board of Directors decided not to allocate any variable compensation to Mrs. Yannick Assouad with respect to 2020.
- Severance Package
It is recalled that Mrs. Yannick Assouad benefits from a severance payment, equal to 18 months of the gross compensation (fixed, variable and benefits in kind) received during the fiscal year preceding the departure, subject to performance condition.
It is reminded that Mrs. Yannick Assouad has received during 2019:
- EUR 550,000 for her fixed compensation;
- EUR 300,905 for her variable compensation;
- EUR 36,699.29 for benefits in kind (composed of EUR 4,421.93 for company vehicle and EUR 32,277.36 for GSC guarantee).
On this basis, Mrs. Yannick Assouad is entitled to receive EUR 1,331,406.44 subject to performance condition. Performance is measured by assessing if the Company has recorded positive consolidated net income, adjusted for the change in fair value of financial instruments, during one of the Company's two consecutive fiscal years preceding the fiscal year in which Mrs. Yannick Assouad ceases her functions. This condition performance is met with respect to 2018.
Consequently, the Board of Directors decided to award a severance package to Mrs. Yannick Assouad for a total amount of EUR 1,331,406.44.
- Non-competition Agreement
It is recalled that Mrs. Yannick Assouad does not benefit from an indemnity relating to a non-competition clause as part of the terms of her corporate mandate.
- Performance Share
Finally, with regard to the performance shares granted to it should be acknowledged that Mrs. Yannick Assouad will retain the rights attached to the performance shares already vested (e.g. 321,278 performance shares granted to her with respect to the third tranche of the performance share plan dated September 22, 2015 (amended on May 19, 2017) and to the first tranche of the performance share plan dated January 16, 2018)1.
It should also be acknowledged that the presence condition relating to the 44,500 performance shares granted to her with respect to the second tranche of the performance share plan dated January 16, 2018 which are not yet vested is already satisfied in accordance with the terms of the plans and that Mrs. Yannick Assouad will retain the rights attached to these shares which will vest according to the terms of the relevant plans.
- Benefits in kind
All other benefit in kind granted to Mrs. Yannick Assouad will be terminated immediately.
It is recalled that if the GSC guarantee from which Yannick Assouad benefits was to provide for a waiting period between the date of her departure and the date when she can benefit from an indemnity under the GSC guarantee, the Company would pay her an indemnity corresponding to the amount to which she would have been entitled under said GSC if it was applicable immediately as from her departure date and until the end of said waiting period.
In addition, if, given the circumstances of the termination of her duties as Chief Executive Officer and her departure from the Group, the GSC guarantee from which Yannick Assouad benefits were to not apply, the Company would pay her a specific indemnity corresponding to the amount to which she would have been entitled under said GSC guarantee up to a maximum amount of one hundred and fifty thousand euros (€150,000) per year. This specific indemnity shall be cumulated, where applicable, with the severance package mentioned above.
This information is established and posted on the Company's website (https://www.latecoere.aero/), notably in accordance with articles L.225-42-1 and
Latécoère is a tier 1 partner to major international aircraft manufacturers (Airbus, Embraer, Dassault, Boeing and Bombardier), in all segments of the aeronautical market (commercial, regional, corporate and military aircraft), specializing in two fields:
- Aerostructures (58% of total revenue): fuselage sections and doors.
- Interconnection systems (42% of total revenue): onboard wiring, electrical harnesses and avionics bays.
At 31 December 2019, Latécoère employed 5,187 people in 13 different countries. Latécoère, a French corporation (société anonyme) with capital of €189,637,036 divided into 94,818,518 shares with a par value of €2, is listed on Euronext Paris - Compartment B. ISIN codes: FR0000032278 - Reuters: LAEP.PA - Bloomberg: LAT.FP
1 It being specified that 71,278 of these shares remain subject to a holding period expiring on March 5, 2021 per the terms and conditions of the relevant performance shares plans.