2021 UNIVERSAL REGISTRATION DOCUMENT

8. Annual general meeting

SUMMARY TABLE OF THE COMPONENTS OF REMUNERATION PAID IN 2021 OR ALLOCATED FOR THAT YEAR TO MR JEAN‑PAUL AGON, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, FOR THE PERIOD FROM 1 JANUARY 2021 TO 30 APRIL 2021

Remuneration components submitted for a vote Amounts allocated for the 2021 financial year 
or accounting valuation		 Amounts paid in 2021 or accounting valuation Description
Fixed remuneration Fixed remunerationAmounts allocated for the 2021 financial year 
or accounting valuation

€733,333
Prorated portion of the annual €2,200,000, over the period from 01/01/2021 to 
30/04/2021

 Fixed remunerationAmounts paid in 2021 or accounting valuation

At its meeting of 11 February 2021, on the recommendation of the Human Resources and Remuneration Committee, the Board of Directors decided to maintain the amount of Mr Jean-Paul Agon’s fixed remuneration at the gross amount of €2,200,000 on an annual basis. This amount has not changed since 2014.

A prorated portion of €733,333 (gross) for the period from 1 January 2021 to 30 April 2021 was paid.
Annual variable remuneration Annual variable remunerationAmounts allocated for the 2021 financial year 
or accounting valuation

€730,400

i.e. 99.6% out of €733,333

(€733,333 is the prorated portion of the €2,200,000 maximum annual variable remuneration over the period from 01/01/2021 to 30/04/2021)

 Annual variable remunerationAmounts paid in 2021 or accounting valuation

 

 Annual variable remunerationDescription

The annual variable remuneration is designed to align the executive corporate officer’s remuneration with the Group’s annual performance and to promote the implementation of its strategy year after year. The Board of Directors strives to encourage the executive corporate officer both to maximise performance for each financial year and to ensure that it is repeated and regular year-on-year.


Annual variable remuneration can amount to a maximum of 100% of the fixed remuneration.


A prorated portion for the period from 1 January 2021 to 30 April 2021 will be paid.


CRITERIA FOR ASSESSMENT OF PERFORMANCE FOR 2021

Remuneration components submitted for a vote
  • Financial criteria
 Amounts allocated for the 2021 financial year 
or accounting valuation60%
Remuneration components submitted for a vote
  • Evolution in like-for-like sales as compared to the budget

 Amounts allocated for the 2021 financial year 
or accounting valuation

15%
Remuneration components submitted for a vote
  • Evolution in market share as compared to the main competitors
 Amounts allocated for the 2021 financial year 
or accounting valuation

15%
Remuneration components submitted for a vote
  • Evolution in operating profit as compared to the budget
 Amounts allocated for the 2021 financial year 
or accounting valuation

10%
Remuneration components submitted for a vote
  • Evolution in net earnings per share as compared to the budget
 Amounts allocated for the 2021 financial year 
or accounting valuation

10%
Remuneration components submitted for a vote
  • Evolution in cash flow as compared to the budget
 Amounts allocated for the 2021 financial year 
or accounting valuation

10%
Remuneration components submitted for a vote
  • Non-financial and qualitative criteria
 Amounts allocated for the 2021 financial year 
or accounting valuation40%
Remuneration components submitted for a vote
  • Quantifiable criteria: 
 Amounts allocated for the 2021 financial year 
or accounting valuation

25%
Remuneration components submitted for a vote
  • -  L’Oréal for the Future: sustainable development commitments for 2030

 Amounts allocated for the 2021 financial year 
or accounting valuation

10%
Remuneration components submitted for a vote
  • -  Human Resources: gender parity, development of talented employees, access to training

 Amounts allocated for the 2021 financial year 
or accounting valuation

7,5%
Remuneration components submitted for a vote
  • -  Digital development
 Amounts allocated for the 2021 financial year 
or accounting valuation

7,5%
Remuneration components submitted for a vote
  • Individual qualitative performance: 
 Amounts allocated for the 2021 financial year 
or accounting valuation

15%
Remuneration components submitted for a vote
  • - Management
 Amounts allocated for the 2021 financial year 
or accounting valuation

7,5%
Remuneration components submitted for a vote
  • - Image, company reputation, dialogue with stakeholders
 Amounts allocated for the 2021 financial year 
or accounting valuation

7,5%
Remuneration components submitted for a vote

The assessment is carried out on a criterion-by-criterion basis without offsetting among the criteria. A summary of the achievements for 2021 is available in section 2.4.2.2. of Chapter 2 of this document.
Remuneration components submitted for a vote
ASSESSMENT FOR 2021 BY THE BOARD OF DIRECTORS’ MEETING OF 9 FEBRUARY 2022
Remuneration components submitted for a vote

On the basis of the aforementioned assessment criteria, the Board of Directors decided, on the recommendation of the Human Resources and Remuneration Committee, to award gross variable remuneration of €730,400  for 2021, or 99.6% of the maximum target, given the level of achievement of the financial criteria and the qualitative and non-financial criteria of 100%  and 99%, respectively. The assessment elements are detailed in section 2.4.2.2. of Chapter 2 of this document.
Remuneration components submitted for a vote

 

 Amounts allocated for the 2021 financial year 
or accounting valuation

 

 Amounts paid in 2021 or accounting valuation€859,831

97.71% out of a maximum target of 40% of the fixed remuneration, i.e. €880,000

 Description

As a reminder, following the approval by the Annual General Meeting of 20 April 2021 of the tenth resolution, an annual variable remuneration was paid for the 2020 financial year amounting to a total of €859,831, since the Board of Directors decided on 11 February 2021, as proposed by the Human Resources and Remuneration Committee, that 97.71% of the maximum objective had been achieved.

It should be noted that Mr Jean-Paul Agon had informed the Board of Directors, which accepted it, that he would waive all remuneration for 2020 relating to the financial targets for his annual variable remuneration, which could have reached up to 40% of the fixed remuneration if non-financial and qualitative targets were achieved (instead of a maximum of 100% for  which he was eligible under the  remuneration policy detailed in section 2.4.1. of Chapter 2 of the 2020 Universal Registration Document).