PERNOD-RICARD - URD 2020-21

____ 2. CORPORATE GOVERNANCE COMPENSATION POLICY

Taking into account the last vote of the Shareholders’ Meeting of 27 November 2020 The Board of Directors, on the recommendation of the Compensation Committee, took into account the vote of the Shareholders’ Meeting of 27 November 2020, which saw strong shareholder support (97.19% for the “ex post” vote and 94.23% for the “ex ante” vote) for the compensation policy put in place within the Group, and therefore decided to continue this policy according to the same principles and arrangements for FY22. policy (not subject to shareholder vote) Overall stock option and performance-based share allocation policy During FY21, the Board of Directors reaffirmed its desire to give key personnel an interest in the performance of Pernod Ricard shares, and during its meeting of 27 November 2020, it decided to introduce a combined allocation plan made up of stock options and performance shares. The Board’s aim is therefore to continue to align the interests of Pernod Ricard employees with those of the shareholders, by encouraging them to hold shares of the Company. Just over 750 employees were rewarded, making it possible to target not only executives in management positions, but also to retain young high-potential managers (Talents) in all of the Group’s affiliates around the world. The 27 November 2020 allocation plan consists of stock options with performance conditions and performance shares. The Board of Directors confirmed the following plan features on the recommendation of the Compensation Committee: subject all allocations (stock options and performance shares) to performance criteria; retain the external performance criterion applicable to stock options and a portion of the performance shares allocated to the Executive Director: positioning of the overall performance of Pernod Ricard shares compared with the overall performance of a panel of 12 comparable companies over three years, only considering positioning on the median or higher; maintain the internal performance criterion applicable to performance shares, i.e. the average achievement of annual targets for profit from recurring operations, assessed over three consecutive financial years; Other aspects of the compensation 2.8.4

maintain a balanced allocation between stock options and performance shares for the members of the Executive Committee, including the Executive Director, thus allowing fair compensation based on the achievement of internal and external criteria; and maintain allocations of performance shares for all beneficiaries, with the volume varying according to the classification of their position within the Group. ALLOCATION OF STOCK OPTIONS WITH EXTERNAL PERFORMANCE CONDITIONS The volume of stock options with performance conditions allocated by the Board of Directors’ meeting of 27 November 2020 stood at 136,711 stock options. All of the stock options under the plan are subject to an external performance condition and will become exercisable from November 2024 depending on the positioning of the overall performance of Pernod Ricard shares compared to the overall performance of a panel of 12 comparable companies. This condition will be evaluated over a three-year period following the plan allocation. The number of shares that will ultimately be granted will be determined by comparing the overall performance of the Pernod Ricard share and the overall performance of a Panel from 27 November 2020 to 27 November 2023 inclusive (three years). Accordingly, if the total performance of the Pernod Ricard shares (TSR) is: below the median (8 th to 13 th position), no options will be exercisable; at the median (7 th position), 66% of the options will be exercisable; in 6 th , 5 th or 4 th position, 83% of the stock options will be exercisable; and in 3 rd , 2 nd or 1 st position, 100% of the stock options will be exercisable. At the grant date, the Board of Directors decided that the Panel shall comprise, in addition to Pernod Ricard, the following 12 companies: AB InBev, Brown Forman, Campari, Carlsberg, Coca-Cola, Constellation Brands, Danone, Diageo, Heineken, LVMH, PepsiCo and Rémy Cointreau. The Panel’s composition is subject to change, based on the above-mentioned companies’ development. The Board of Directors shall, with a duly reasoned decision and following the recommendation of the Compensation Committee, exclude a company from or add a new company to the Panel, for example, in the case of an acquisition, absorption, dissolution, spin-off, merger or change of business of one or more of the Panel’s members, subject to maintaining the overall consistency of the Panel and enabling the application of the external performance condition in line with the performance objective set upon allocation. The vesting period for the stock options is four years followed by an exercise period of four years.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021