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 NICOLAS HIERONIMUS, CHIEF EXECUTIVE OFFICER, AS FROM 1 MAY 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 remuneration

Amounts allocated for the 2021 financial year or accounting valuation

€1,333,333

Prorated portion of the annual €2,000,000, over the period from 01/05/2021 to 31/12/2021

 Fixed remuneration

Amounts paid in 2021 or accounting valuation

 

 Fixed remuneration

Description

At its meeting of 11 February 2021, on the recommendation of the Human Resources and Remuneration Committee, the Board of Directors set the amount of the fixed remuneration of Mr Nicolas Hieronimus at the gross amount of €2,000,000 on an annual basis. A prorated portion for the period from 1 May to 31 December 2021 was paid, i.e. a gross amount of €1,333,333.
Annual variable remuneration Annual variable remuneration

Amounts allocated for the 2021 financial year or accounting valuation

€1,552,667

i.e. 116.45% out of €1,333,333 (€1,333,333 is the prorated portion of the €2,000,000 target annual variable remuneration over the period from 01/05/2021 to 31/12/2021)

 Annual variable remuneration

Amounts paid in 2021 or accounting valuation

 

 Annual variable remuneration

Description

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.

The target is set at 100% of the fixed remuneration (or €2,000,000 gross); the annual variable remuneration may reach up to 120% of the fixed remuneration (€2,400,000 gross) if there is outperformance on the objectives. A prorated portion for the period from 1 May 2021 to 31 December 2021 will be paid.

Remuneration components submitted for a vote

CRITERIA FOR ASSESSMENT OF PERFORMANCE FOR 2021

Remuneration components submitted for a vote
  • Financial criteria

Amounts allocated for the 2021 financial year or accounting valuation

60 %

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 valuation

40 %

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 off setting among the criteria. A summary of the achievements for 2021 is available in section 2.4.2.3. 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 €1,552,667 for 2021, or 116.45% of the maximum target, given the level of achievement of the financial criteria and the qualitative and non-financial criteria of 119.3% and 112.1%, respectively. The assessment elements are detailed in section 2.4.2.3. of Chapter 2 of this document.