Mr Jean-Paul Agon did not receive any performance shares in 2021.
Mr Jean-Paul Agon does not receive any remuneration as a Director.
Mr Jean-Paul Agon does not receive any remuneration as a Director of Group companies.
Mr Jean-Paul Agon continued to benefit, because of his classification as a senior manager during his term of corporate office and until the termination of his employment contract, from the additional social protection schemes and, in particular, the defined contribution pension scheme, and the employee benefit and healthcare schemes applicable to the Company’s employees.
The amount of the employer’s contributions to the employee benefit and healthcare schemes for the period from 1 January to 30 April 2021 amounted to €1,392, and the amount of the employer’s contribution to the Defined Contribution Pension scheme amounted to €2,125.
As for all other senior managers of the Group, the pension amount resulting from the employer contributions of the L’Oréal RCD must be deducted from the amount of the Pension Cover for the calculation of the life annuity potentially due under this plan so that these benefits are not combined (see section 2.4.3.4. “Application of the related-party agreements scheme” of this document).
As a reminder, the lifetime risk related to the plans resulting from Article 83, 2° of the French General Tax Code is borne by the insurer.
At its meeting of 11 February 2021, and on the recommendation of the Human Resources and Remuneration Committee, the Board of Directors decided to set Mr Nicolas Hieronimus’ fixed annual remuneration at the gross amount of €2,000,000, paid on a proportional basis for the period from 1 May to 31 December 2021.
With regard to Nicolas Hieronimus’ annual variable remuneration for 2021, the target was set at €2,000,000 gross on an annual basis, or 100% of his fixed remuneration, with a maximum of 120% of fixed remuneration in the event of out performance, or €2,400,000 gross. This sum represents the maximum amount of variable remuneration that may be paid to him.
At its meeting on 11 February 2021, the Board of Directors had set the variable remuneration criteria applicable for 2021 and the respective weighting of such criteria. The financial criteria represent 60% of the variable remuneration while the non-financial criteria represent 40%. These financial criteria are directly correlated with the Company’s economic performance indicators: growth in sales and market share as compared to its main competitors, in operating profit, earnings per share (EPS) and cash-flow.
On 9 February 2022, the Board of Directors, on the basis of the recommendations of the Human Resources and Remuneration Committee, assessed the performance of Mr Nicolas Hieronimus. The rate of achievement was 116.45% of objectives. It was thus decided that, in respect of annual variable remuneration for 2021, Mr Nicolas Hieronimus would be awarded an amount of €1,552,667 for the period between 1 May and 31 December 2021.
| Financial criteria | Weighting | 2021 Results |
Payment rate Target 100% of the fixed amount Maximum 120% |
Board appraisal |
|---|---|---|---|---|
| Like-for-like sales as compared to the budget(1) | Like-for-like sales as compared to the budget(1) Weighting 15% |
Like-for-like sales as compared to the budget(1) 2021 Results €32,287.6 million |
Like-for-like sales as compared to the budget(1)
Payment rate Target 100% of the fixed amount Maximum 120% 118% |
Like-for-like sales as compared to the budget(1) Board appraisal Performance well above the budget. |
| Sales growth differential compared to main competitors(2) | Sales growth differential compared to main competitors(2) Weighting 15% |
Sales growth differential compared to main competitors(2) 2021 Results +6.9 points |
Sales growth differential compared to main competitors(2)
Payment rate Target 100% of the fixed amount Maximum 120% 120% |
Sales growth differential compared to main competitors(2) Board appraisal Maximum objective reached. |
| Operating profit as compared to the budget(1) | Operating profit as compared to the budget(1) Weighting 10% |
Operating profit as compared to the budget(1) 2021 Results €6,160.3 million |
Operating profit as compared to the budget(1)
Payment rate Target 100% of the fixed amount Maximum 120% 120% |
Operating profit as compared to the budget(1) Board appraisal Maximum objective reached. |
| Earnings per share(3) as compared to the budget(1) | Earnings per share(3) as compared to the budget(1) Weighting 10% |
Earnings per share(3) as compared to the budget(1) 2021 Results €8.82 |
Earnings per share(3) as compared to the budget(1)
Payment rate Target 100% of the fixed amount Maximum 120% 120% |
Earnings per share(3) as compared to the budget(1) Board appraisal Maximum objective reached. |
| Cash flow(4) as compared to the budget(1) | Cash flow(4) as compared to the budget(1) Weighting 10% |
Cash flow(4) as compared to the budget(1) 2021 Results €5,653.3 million |
Cash flow(4) as compared to the budget(1)
Payment rate Target 100% of the fixed amount Maximum 120% 119% |
Cash flow(4) as compared to the budget(1) Board appraisal Performance well above the budget. |
| RATE OF ACHIEVEMENT OF 2021 FINANCIAL TARGETS | RATE OF ACHIEVEMENT OF 2021 FINANCIAL TARGETS Weighting
|
RATE OF ACHIEVEMENT OF 2021 FINANCIAL TARGETS 2021 Results
|
RATE OF ACHIEVEMENT OF 2021 FINANCIAL TARGETS Payment rate Target 100% of the fixed amount Maximum 120% 119.3% |
RATE OF ACHIEVEMENT OF 2021 FINANCIAL TARGETS Board appraisal
|
(1) Budget not provided for reasons of confidentiality.
(2) Panel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Johnson & Johnson, Henkel, LVMH, Kao and Coty.
(3) Diluted share attributable to owners of the company per share excluding non-recurring items.
(4) Cumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets.
