PERNOD-RICARD - URD 2020-21

____ 2. CORPORATE GOVERNANCE COMPENSATION POLICY

Fixed annual compensation The fixed portion of the Executive Director’s compensation is determined based on: the level and complexity of his responsibilities; his experience and career history, particularly within the Group; market analyses for comparable functions (study conducted with the help of specialised firms on the positioning of the compensation of the Executive Director in relation to the practices of CAC 40 companies and international companies in the beverage sector for similar positions); individual performance. The possibility of a review of fixed compensation is analysed in detail at each reappointment. However, an early review might occur in the event of significant changes to their scope of responsibilities or a major deviation compared to the market positioning. In these specific situations, the adjustment of the fixed compensation and the reasons for it will be made public. Finally, the Board of Directors has decided that, in the event of the appointment of a new Chairman and CEO, a new Chief Executive Officer or new Deputy Chief Executive Officer(s), these same principles will apply. In light of the exceptional circumstances in 2020, on the recommendation of the Compensation Committee, the Board of Directors decided, on 1 September 2020, to postpone the review of Mr Alexandre Ricard’s compensation by one year, despite the exceedingly high quality of his performance and the renewal of his term of office. Accordingly, on 31 August 2021, the Board of Directors decided, on the proposal of the Compensation Committee, to increase the fixed annual compensation of Mr Alexandre Ricard to €1,250,000 until the end of his term of office, so that it is more closely aligned with the median practices of the CAC 40, given that Pernod Ricard’s market capitalisation is above the median of the CAC 40. In this decision, the Board of Directors took into consideration: the acceleration of Group Pernod Ricard’s financial performance since his appointment in 2015; the excellent management during the health crisis which confirmed Mr Alexandre Ricard's leadership;

the analyses carried out by two independent external firms which revealed a gap between his compensation (both fixed and total) compared to the median practice of CAC 40 companies and a greater gap with companies in the beverage sector (i.e. external condition panel); and fixed compensation of Mr Alexandre Ricard unchanged since August 2018. The Board of Directors also ensured that this review was coherent with the compensation and salary conditions of the Group’s employees, particularly in France. Compensation as Chairman of the Board of Directors The Executive Director does not receive compensation for offices he or she holds in the Company or in Group companies. Variable annual portion The purpose of variable annual compensation is to compensate the performance achieved during the financial year by the Executive Director in terms of the annual performance objectives set by the Board of Directors in accordance with the corporate strategy. Pursuant to the provisions of article L. 22-10-34 of the French Commercial Code, the payment of variable annual compensation is conditional upon its prior approval by the Ordinary Shareholders’ Meeting (“ex-post” vote). The Board of Directors and the Compensation Committee strive to strengthen the link between performance and compensation and to integrate corporate social responsibility. More specifically, this variable portion is based on performance levels applying to financial and non-financial parameters, representative of expected overall performance. This variable portion is expressed as a percentage of the fixed annual portion. It may vary between 0% and 110% if the quantitative and qualitative objectives are achieved (target level) and may rise to a maximum of 180% if the Group records exceptional financial and non-financial performance in relation to the objectives.

66

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021