The Edmond de Rothschild group is convinced that strengthening the link between performance (individual and collective) and compensation, whatever its components (remuneration, promotion, internal mobility), as well as having communication channels established on the basis of mutual and sincere trust, contributes to strengthening transparency and fairness but also to fostering the motivation and commitment of employees, essential conditions for the achievement of all our collective objectives.
The remuneration policies of Edmond de Rothschild Asset Management (France), Edmond de Rothschild Private Equity (France) and Edmond de Rothschild (France) have been updated in accordance with AIFMD, UCITS V and CRD IV regulations. They entered into force on January 1, 2018 and were validated by the Supervisory Board of each of the entities concerned, on the recommendation of the Remuneration Committee.
The variable remuneration of executives, risk takers as well as professionals in the compliance, internal control and risk control functions is paid in part on a deferred basis. Specific rules for applying this principle of deferred compensation are set each year, after analysis by the Finance Department, the Human Resources Department and the Compliance and Risk Control Departments, and are subject to validation of the Supervisory Board of Edmond de Rothschild France on the proposal of its Remuneration Committee.
Within the framework of CRD IV, a Group Employee Share Plan (formerly known as the Long Term Incentive Plan), in the form of restricted shares units from the Swiss Holding of the Edmond de Rothschild Group, was established in March 2016, as a deferred compensation instrument. In addition, a second instrument was implemented in March 2018, in the form of deferred cash indexed to the share price of the Group's Swiss Holding. As part of AIFMD, a new tool was implemented in March 2016 for the payment of the deferred part (if any) of the variable remuneration of risk takers in asset management. This instrument makes it possible to index both half of the deferred compensation and half of the "immediate" compensation of these employees on the weighted average performance of a basket of Edmond de Rothschild Asset Management funds representative of their expertise.
The UCITS V regulations for UCITs (Undertakings for the Collective Investment in Transferable Securities) have been in force since January 1, 2017 and include provisions very similar to those of the AIFMD regulations. The Group anticipated this directive by applying, several years ago, a principle of deferred compensation, including to managers of UCITS. The aforementioned instrument, in the form of cash indexed to a basket of funds, has been the subject of adaptations within the framework of the entry into force of the UCITS V directive since the financial year 2017.
In accordance with these regulations, the Edmond de Rothschild group aims for optimal quality of risk management and control of the risks taken by the persons and companies concerned in continuous improvement, as well as an alignment of its interests with those of its customers.
Given the small size (<50 employees at 31/12/2019, assets under management of less than 1,250 million euros) of Edmond de Rothschild Private Equity (France), the company applies the principle of proportionality with regard to the publication of the principles of its remuneration policy, which are made available on request.