DETAILS OF NON-FINANCIAL CRITERIA LINKED TO THE PROGRESS OF THE L'ORÉAL FOR THE FUTURE PROGRAMME USED TO ASSESS THE PERFORMANCE OF THE EXECUTIVE CORPORATE OFFICER, AND FOR WHICH THE 2030 OBJECTIVES ARE SET OUT IN CHAPTER 1
% of renewable energy use on operated sites and stores (1).
% reduction in the use of virgin plastic for product packaging in absolute terms compared to 2019.
Number of people from disadvantaged communities helped to gain access to employment(2).
| Financial criteria | Weighting (out of 100) | As a % of fixed remuneration | ||
|---|---|---|---|---|
| Min | Cible | Max | ||
| CRITÈRES FINANCIERS | ||||
| Like-for-like sales as compared to budget(1) | 15% | 0% | 17% | 19.5% |
| Sales growth differential as compared to main competitors(2) | 15% | 0% | 17% | 19.5% |
| Trigger threshold for the “Sales growth differential as compared to main competitors” criterion | lower than the panel | +1 pt vs panel | +3 pts vs panel | |
| Operating profit as compared to the budget(1) | 10% | 0% | 11.25% | 13.1% |
| Earnings per share(3) as compared to the budget(1) | 10% | 0% | 11.25% | 13.1% |
| Cash flow(4) as compared to net profit | 10% | 0% | 11.25% | 13.1% |
| TOTAL FINANCIAL CRITERIA | 60% | 0% | 67.8% | 78.3% |
| NON-FINANCIAL AND QUALITATIVE CRITERIAS | ||||
| CSR criteria: L'Oréal for the Future programme | 10% | 0% | 11.25% | 13.1% |
| Human Resources criteria | 7.5% | 0% | 8.5% | 9.75% |
| Digital development criteria | 7.5% | 0% | 8.5% | 9.75% |
| Qualitative criteria: Management | 7.5% | 0% | 8.5% | 9.75% |
| Qualitative criteria: Image, company reputation, dialogue with stakeholders | 7.5% | 0% | 8.5% | 9.75% |
| TOTAL NON-FINANCIAL AND QUALITATIVE CRITERIA | 40% | 0% | 45.2% | 52.1% |
| TOTAL | 100% | 0% | 113% | 130.4% |
Since 2009, the Board of Directors has granted performance shares to employees of the Group and, since 2012, also to its executive corporate officer, under Articles L. 225-197-1 et seq., L. 22-10-59, L. 22-10-60 and L. 22‑10-8 of the French Commercial Code and the authorisations granted by the General Meeting.
These grants are linked to performance and their aim is to encourage achievement of the Group's long-term objectives and the resulting value creation for shareholders. Consequently, vesting is subject to performance conditions which are recorded at the end of a vesting period of four years from the grant date.
