Regulations already in place for this: “The remuneration policy shall contribute to the company’s business strategy and long-term interests and sustainability and shall explain how it does so” (European Directive Article 9a, of the May 17, 2017). “Companies are permitted to present non-GAAP performance measures on a per-share basis, such as adjusted EPS (Adjusted earnings per share), but they are prohibited from presenting non-GAAP measures of liquidity or cash flow, such as free cash flow, on a “per-share basis” (SEC non-GAAP Financial Measures of April 4, 2018)”. | ||||
1 | Current average workforce | (a) | 341,179 | |
2 | Current average net income (group share) | (b) | $346,000,000 | |
3 | Current contribution per employee to average net income (Group share) | (b)/(a) | $1014 | |
4 | Estimated Absolute VaR (EL + UL) | $7,705,990,410 | ||
5 | Potentially Recoverable Losses (PRL) = Absolute VaR - Risk Appetite Threshold Calibrated at 4.5% (Standard Threshold) for a PRL at 95.5%: the application can be custom-calibrated to 99.5% | $7,359,220,842 | ||
3-year plan to recover historical absolute VaR losses (UL + EL) of the last five years based on the risk appetite threshold | N: 30% | N + 1: 60% | N + 2: 100% | |
6 |
| $6471 | $12,942 | $21,570 |
7 | Cash surplus planned on 67% of PRLs (E) | $4,930,677,964 | ||
8 | Employee incentive bonus planned on 33% of PRLs | $2,428,542,878 | ||
9 | SOX ratio of the capital structure (Economic Capital/Variable Salary or Incentivized Pay) securing investments and the predictability of variable salaries over a 3-year plan | 2.03 | ||
10 | Fixed salary future financial performance measurement data for salary negotiations in year N or 1st year of the plan [Average of the last five years in millions in accordance with the logical historical basis of the new standardized approach to operational risk | $72,649,000,000 |