PERNOD-RICARD - URD 2021-22 EN

2. Corporate governance Compensation report

Presentation of the fundamental principles of the compensation policy

The Board of Directors follows the general guidelines, drawn up within the framework of the recommendations of the AFEP-MEDEF Code, for the determination, review and implementation of its compensation policy. It thus ensures that the compensation policy is consistent with the principles of compliance, comparability, competitiveness, comprehensiveness, motivation, performance, intelligibility and measurement. This is reflected in the following manner:

WHAT WE DO Align the compensation of the Executive Director with the short- and long-term interests of shareholders

Balance short- and long-term compensation, discouraging short-term risk-taking without compromising long-term results Monitor the compensation levels and structures observed in the CAC 40 and our main competitors on an annual basis Use the support of an independent external consulting firm Implement the performance criteria linked to the Group’s long-term strategy, taking CSR issues into account Expect high standards in terms of shareholding and capital ownership for Executive Directors Ensure that the compensation policy for the Executive Director is consistent with the compensation policy for the Group’s employees, and in particular that of the members of the Executive Committee.

Compensate performance

Performance conditions prevail in the compensation of the Executive Director

Total target compensation including supplementary pension

27% Fixed compensation

30% Target variable compensation

43% Long-term incentive

73% Compensation with performance conditions

Maximum Total compensation including supplementary pension

22% Fixed compensation

41% Maximum variable compensation

37% Long-term incentive

78% Compensation with performance conditions

Ambitious short- and long-term performance objectives

History of the rate of achievement of the performance conditions for the annual variable compensation of the Executive Director in line with the Group’s results

History of the vesting rates for long-term incentive plans

VARIABLE

PRO

Plans for the Executive Director

€2,500,000

€3,000M

€2,000,000

€2,500M

2018 Plans 2022 Vesting

84%

€1,500,000

€2,000M

€1,000,000

€1,500M

2017 Plans 2021 Vesting

45%

€500,000

€1,000M

2016 Plans 2020 Vesting

85%

€0

€0M

FY18

FY19

FY20

FY21

FY22

0%

50%

100%

● Target variable ● Maximum variable

Variable paid

● Internal condition ● External condition ● Internal & external condition

Profit from recurring operations in €M

66

Pernod Ricard Universal Registration Document 2021-2022