Remuneration in respect of the corporate office will in no event be taken into consideration in the calculation of all benefits that may be due under the employment contract described above.
The reference remuneration to be taken into account for all rights attached to the employment contract, in particular, for the calculation of the aforementioned pension scheme, will be based on the amount of remuneration at the date of suspension of the employment contract. This reference remuneration is revised annually by applying the revaluation coefficient in respect of salaries and pension contributions published by the French state pension fund (Caisse Nationale d'Assurance Vieillesse). The seniority applied will cover the entire career, including the years spent as a corporate officer.
Information on the benefits that could be owed under the suspended employment contract are discussed in section 2.4.3.
The executive corporate officer is also considered in the same way as senior executives during the term of his corporate office, which allows him to continue to benefit from the supplementary social protection schemes and, in particular, from the defined contribution pension scheme, and the employee benefit and healthcare schemes applicable to the Company's employees.
The remuneration policy for the executive corporate officer is, where applicable, in line with the policy which was applied to them as senior executives.
Their level of remuneration as an executive corporate officer is set on the basis of the level of responsibilities they exercised in the Company at the time of their appointment.
The remuneration policy is based on the same foundations and instruments as those applied to the Company's senior executives. The remuneration principles are therefore stable and durable.
The Board of Directors is informed every year of the Group's Human Resources policy. The Board is in a position to verify the consistency between the remuneration of the executive corporate officer and procedures in place, particularly for the members of the Group's Executive Committee, based on the work by the Human Resources and Remuneration Committee and the Nominations and Governance Committee.
The remuneration of the executive corporate officer must be competitive in order to attract, motivate and retain the best talents in the Company's top positions.
This remuneration is assessed as a whole, namely by taking into account all the components that make it up(1).
To assess the competitiveness of this remuneration, a coherent and stable reference panel is put in place, with the assistance of an external independent consulting firm.
The panel is made up of a range of leading global French and international companies that must operate on similar markets and are L'Oréal's direct competitors in the cosmetics sector, or operate on the wider consumer goods, luxury or pharmacy markets for all or a portion of their business activities.
This panel is re-examined each year by the Human Resources and Remuneration Committee to ensure that it continues to be relevant, it being specified that some companies making up the panel may be changed, based on proposals by an independent consultancy firm, particularly if there are changes to their business or structure.
Accordingly, at the end of the reviews carried out in 2025 and 2026 with the assistance of an independent consultancy firm, the Committee recommended to the Board that a targeted change be made to the composition of the panel in order to:
The adjustment recommended by the Committee consists of removing Kenvue from the panel, as the acquisition of this company by Kimberley Clark (that the Board removed from the panel at the time of its 2025 review) has been announced for 2026, which is likely to compromise the panel's consistency over time. In view of this context, the Board decided to take action in advance of this acquisition in order to ensure stability in the methods used and preserve the panel's readability. The removal of Kenvue without replacing it also helps address the reservations expressed by certain shareholders regarding the weighting of US companies within the panel. At the same time it increases the relative proportion of European companies, while maintaining a robust and representative comparison basis that reflects L'Oréal's international dimension.
(1) Only recurring components of remuneration are taken into account in the Chief Executive Officer's competitiveness analysis, and any exceptional components paid to the executives of the companies that make up the panel are excluded.
