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4.2 FINANCIAL STATEMENTS OF DANONE SA, THE DANONE PARENT COMPANY
Note 17. Post-employment benefit commitments and commitments to management bodies and the Board of Directors
DANONE
REGISTRATION DOCUMENT 2015
160
NOTE 17. POST-EMPLOYMENT BENEFIT COMMITMENTS AND COMMITMENTS TO
MANAGEMENT BODIES AND THE BOARD OF DIRECTORS
Post-employment benefit commitments
As of December 31
(in € millions)
2014
2015
Supplementary benefits in addition to defined benefit retirement plans
(a)
Gross commitments
539
493
Commitments net of retirement plan assets
340
299
(a) Commitments measured using the actuarial method.
These net commitments are presented off-balance sheet (see Note 18 of the Notes to the financial statements of the parent company
Danone). The main commitment involves the retirement plan granted to some Danone executives.
Retirement plan granted to some Danone executives
Commitments measured using the actuarial method
As of December 31
Retirement plan for executives
(in € millions)
2014
2015
Gross commitments
468
418
Commitments net of plan assets
296
254
The €42 million decrease in commitments net of plan assets was mainly due to the increase in discount rates.
Main actuarial assumptions
Year ended December 31
Retirement plan for executives
(as a percentage, except for age in years)
2014
2015
Discount rate
2.2%
2.4%
Expected rate of return on plan assets
2.2%
2.4%
Salary growth rate
3.0%
3.0%
Retirement age
60-65
60-66
Commitments to management bodies and the Board of Directors
Post-employment benefit commitments for corporate officers and Executive Committee members
As of December 31
(in € millions)
2014
2015
Supplementary benefits in addition to defined benefit retirement plans
(a)
Gross commitments
67
47
(a) Commitments measured using the actuarial method.
Severance pay for Executive Committee members
Severance pay for members of the Executive Committee in certain cases where they cease to continue their terms of office or exercise
their functions were set at twice the annual gross compensation (fixed, variable, and in-kind) they received over the 12 months preceding
the date on which they cease to continue their functions, and, in the case of the Company's two corporate officers, the Board of Directors
decided on February 22, 2016 that the severance pay would be subject to the fulfillment of defined performance conditions.