Mr Jean-Paul Agon notified the company of the termination of his employment contract on 30 April 2021, in order to benefit from his retirement rights as from 1 May 2021, at the end of a 42-year career in the Company.
All provisions relating to the retirement of Mr Jean-Paul Agon were approved by the Annual General Meeting on 27 April 2010.
A retirement indemnity, attached solely to the termination of the employment contract, was paid to Mr Agon over the month of May 2021 in strict application of the public order rules of French Labour law, the National Collective Bargaining Agreement for the Chemical Industries (Convention Collective Nationale des Industries Chimiques) and the collective agreements applicable to all L’Oréal’s senior managers.
This indemnity was based on the amount of remuneration at the date of suspension of the employment contract in 2006, after applying the revaluation coefficient in respect of salaries and pension contributions published by the French state pension fund (Caisse Nationale d’Assurance Vieillesse). As of 1 January 2021, this revalued remuneration amounted to €1,731,000 for fixed remuneration and €1,442,500 for variable remuneration.
The retirement indemnity was a gross amount of €2.12 million, representing eight months of the aforementioned revalued remuneration.
The implementation of the non-compete clause is not applicable in the event of retirement: no non-compete indemnity will be paid to Mr Jean-Paul Agon.
The gross amount of the pension that would be paid to Mr Jean-Paul Agon, under L’Oréal’s “Garantie de Retraite des Membres du Comité de Conjoncture” (Pension Cover of Members of the Comité de Conjoncture) scheme, represents €1.59 million, i.e. around 36% of the fixed and variable remuneration he received as corporate officer.
The Board of Directors agreed to Mr Jean-Paul Agon’s wish to waive this supplementary pension during his term of office as Chairman of the Board of Directors so as not to combine it with the remuneration of €1,600,000 proposed by the Board of Directors on 11 February 2021, approved by the Annual General Meeting of 20 April 2021 in the context of the vote on the 14th resolution.
The pensions that could have been paid for the period of his office as Chairman will be definitively lost for Mr Jean-Paul Agon without any increase in pension or any other subsequent compensation.
