LOREAL_Registration_Document_2017

4 2017 Consolidated Financial Statements* NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Number of employees, personnel costs and employee benefits

NOTE 5

Number of employees 5.1.

31.12.2017

31.12.2016 31.12.2015

Western Europe North America

28,555 14,363 39,688 82,606

27,579 14,118 38,044 79,741

26,445 12,915 33,909 73,269

New Markets TOTAL (1) (2)

Excluding employees of equity-accounted companies. (1) Excluding the impact of The Body Shop which accounted for 9,590 employees in 2016 and 9,612 in 2015. (2)

Personnel costs 5.2.

2017

2016

2015

€ millions

Personnel costs (including welfare contributions) (1) (2)

5,433.5

5,182.6

4,967.5

Excluding personnel costs of equity-accounted companies. (1) Excluding personnel costs related to The Body Shop which amounted to €255.3 million in 2016 and €255.5 million in 2015. (2)

Personnel costs include the pension expense (excluding the interest component), the cost of any share-based payments (stock options and free shares), and payroll taxes.

Executive compensation 5.3. Costs recorded in respect of compensation and similar benefits granted to the Management Committee and the Board of Directors can be analysed as follows:

2017

2016

2015

€ millions

Directors’ fees

1.3

1.2

1.2

Salaries and benefits including employer welfare contributions

32.3

29.9 15.6 24.1

30.6 17.3 25.8

Employee retirement obligation charges

9.7

Share-based payment (stock option and free shares)

26.1

The number of executives who were members of the Management Committee was 15 at 31 December 2017, the same as at 31 December 2016 and compared to 16 at 31 December 2015.

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