Registration document 2007 - Total.com

Pensions and other commitments (Article
L 225-102-1, paragraph 3, of the
French Commercial Code)
The Group does not have a specific pension plan for the
Chairman and the Chief Executive Officer.
The Chairman and the Chief Executive Officer are entitled to a
retirement benefit calculated pursuant to the same formula used
for all employees of TOTAL S.A. The method for calculating this
benefit is determined by the National Collective Bargaining
Agreement for the Petroleum Industry and is based on the annual
gross compensation (including fixed and variable portions) paid
to the Chairman or the Chief Executive Officer, as the case may
be.
The Chairman and the Chief Executive Officer are also eligible for
a complementary pension plan open to all employees of the
Group whose annual compensation is greater than the annual
social security threshold multiplied by eight. There are no French
legal or collective bargaining provisions that apply to
remuneration above this social security ceiling.
This complimentary pension plan is financed and managed by
TOTAL S.A. to award a pension that is based on the period of
employment (up to a limit of 20 years) and the portion of annual
gross compensation (including fixed and variable portions) that
exceeds the annual social security threshold multiplied by eight.
This pension is indexed to the French Association for
Complementary Pensions Schemes (ARRCO) index.
As of December 31, 2006, the Group’s pension obligations
related to the Chairman are the equivalent of an annual pension
of 15.46% of the Chairman’s 2006 compensation.
For Mr. de Margerie, the Group’s pension obligations are, as of
December 31, 2006, the equivalent of an annual pension of
26.10% of his 2006 compensation.
The Company also funds a life insurance policy which guarantees
a payment, upon death, equal to two years’ compensation (both
fixed and variable), increased to three years upon accidental
death, as well as, in case of disability, a payment proportional to
the degree of disability.
If the Chairman or the Chief Executive Officer’s employment is
terminated or his term of office is not renewed, he is eligible for
severance benefits calculated according to terms of the National
Corporate Governance
Compensation of the Board of Directors and Executive Officers
5
Collective Bargaining Agreement for the Petroleum Industry that
applies to employees of TOTAL S.A. The maximum severance
benefit, based upon thirty years of employment with the Group, is
equal to two times an individual’s annual pay, based upon the gross
compensation (both fixed and variable) paid in the previous twelvemonth
period.
These severance benefits may be increased by an amount equal to
an additional year’s gross pay (calculated as specified above) if the
Chairman or the Chief Executive Officer enters into a non-compete
agreement or, in the case of a change in control of the ownership of
the Company, if termination occurs within the two-year period
following the change in control.
These provisions for severance benefits are not applicable if, at the
time of severance or non-renewal, the Chairman or the Chief
Executive Officer is eligible to receive full retirement benefits. The
benefits mentioned above are considered to cover any amounts
due to the Chairman or the Chief Executive Officer, as the case may
be, for all functions he may have performed for the Group. If the
Group terminates employment or does not renew a term of office
for reason (faute grave or faute lourde), these provisions for benefits
do not apply.
In addition to the pension commitments described above, the
Company has the following commitments to Messrs. Tchuruk and
Vaillaud:
• The Company has funded a complementary pension for
Mr. Tchuruk related to his previous employment by the Group.
After retirement, the amount paid per year to Mr. Tchuruk under
this complementary pension would amount to approximately
71,150 euros, based upon calculations as of December 31,
2006. This pension is indexed to the ARRCO index.
• The Company has funded a complementary pension for
Mr. Vaillaud related to his previous employment by the Group.
Mr. Vaillaud receives an annual complementary pension of
approximately 137,450 euros, based upon calculations as of
December 31, 2006. This pension is indexed to the ARRCO
index
TOTAL – Registration Document 2006 103