BIC : Corporate officers compensation

BIC Group - Press Release
Clichy - 16 JUNE 2016
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Board of Directors of May 18^th, 2016
Corporate officers compensation

On Wednesday, May 18th, 2016, the SOCIÉTÉ BIC Board of Directors made the following decisions.

·         Bruno Bich, Chairman and Chief Executive Officer, will continue receiving 200,000 euros per year in fixed compensation and no variable compensation.

·         Gonzalve Bich, Executive Vice-President, will receive an annual fixed remuneration of 400,000 US dollars from June 2016, with a target bonus of 70%.

·         Jim DiPietro, Executive Vice-President, will receive an annual fixed remuneration of 500,000 US dollars from June 2016, with a target bonus of 75%.

·         The fixed and variable parts of the compensation 2016 for Mrs Marie-Aimée Bich-Dufour had previously been set and have not been changed. (see the press release published on March 10, 2016)

Each of the following beneficiaries has been granted performance-based BIC shares:
·         25,000 shares to Mr Mario Guevara, Chief Executive Officer;

·         3,250 shares to Mrs Marie-Aimée Bich-Dufour, Executive Vice-President;

·         5,000 shares to Mr Gonzalve Bich, Executive Vice-President;

·         8,000 shares to Mr Jim DiPietro, Executive Vice-President.

The acquisition period for these performance shares is fixed at three years. The shares will become fully vested provided that the following two objectives are achieved: Net Sales increase and Cash Flow From Operations and Change in Inventory (CFO &I), as a percentage of net sales. Subsequent to vesting, the shares will be non-transferable until March 31, 2022.

Following Mario Guevara's decision to retire on June 2nd, 2016, the SOCIÉTÉ BIC Board of Directors has determined the terms and conditions of his termination :
·         The fixed part of the compensation 2016 had previously been set at 810,000 US dollars ; it is paid prorata temporis until June 1, 2016;

·         No variable compensation will be paid for 2016;

·         No exceptional compensation will be paid;

·         No termination allowance or non-competition allowance will be paid;

·         Mario Guevara retains the rights associated with the performance shares award which are not yet vested, subject to the satisfaction of the performance conditions stipulated by the plans rules. The vesting and holding periods will continue to be applicable. The value of these rights is equivalent to 70,000 performance shares (including the grant of May 18, 2016) or 7,170,000 euros in accounting value;

·         Mario Guevara has elected to receive his American supplementary pension benefit as a lump sum. On May 31, 2016, he will receive 121,933 US dollars representing the retirement benefit acquired in Mexico. Then on January 1, 2017, he will receive a lump sum of 13,595,188 US dollars representing the retirement benefit acquired in the United States.

In addition to the press release published on March 10, 2016, the supplementary pension for François Bich amounts to approximately 210,000 euros per year.

For more information, please consult the corporate website: www.bicworld.com

BIC is a world leader in stationery, lighters, shavers and promotional products. For more than 60 years, BIC has honored the tradition of providing high-quality, affordable products to consumers everywhere. Through this unwavering dedication, BIC has become one of the most recognized brands in the world. BIC products are sold in more than 160 countries around the world. In 2015, BIC recorded Net Sales of 2,241.7 million euros. The Company is listed on "Euronext Paris" and is part of the SBF120 and CAC Mid 60 indexes. BIC is also part of the following SRI indexes: Carbon Disclosure Leadership Index (CDLI), FTSE4Good Europe, Euronext Vigeo Europe 120, Ethibel Sustainability Excellence Europe, STOXX ESG Leaders and Gaia Index.