Legal action concerning the STIP : The CFTC will appeal the lower court’s dismissal of its case

13 juin 2022

After two and a half years of discussions and many documents provided, the Grenoble court’s verdict was announced on May 30th: the CFTC’s case has been dismissed.
The CFTC will not comment on the very (too!) complex content of the case, but it cannot be satisfied with the judge’s findings.

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To resume: following an “overly” generous STIP payment (in 2016 and 2017), management presented an overhaul of allocation rules in February 2018, with the introduction of two major changes to circumscribe payouts:

 

  • Limiting the personal share to 100% at the business’s level

Many of you have been denouncing this unjust rule year after year. It is made particularly penalising by the fact that, for example, in giving 150% to an employee, management gives only 50% to another.
Individual distribution becomes theoretical, since employees receive their personal share relative to the share their colleagues have obtained.

  • Advent of arbitrariness for the collective share

Whether by chance or not, it is following two exceptional distributions that management decided to amend this system. Since then, collective goals have been much more ambitious than those given to markets. The introduction of a “management call” with subjective and arbitrary criteria allows for adjusting results (increased or decreased) relative to EBIT performance achieved, but especially relative to the budget


The court’s decision has not taken into account all the case’s details, and some points have even been misunderstood. Thus, there are grounds for an appeal.
After 3 years of this system being applied, it continues to be just as misunderstood, frustrating and unjust.

The CFTC has decided to appeal this ruling.
New proceedings should last between 12 and 18 months



STIP Jugement première instance STIP Jugement première instance