PERNOD-RICARD - URD 2021-22 EN

Corporate governance Compensation report

Breakdown of the achievement levels of the variable annual compensation criteria

Quantitative criteria: target 80% and maximum 150%

Level of achievement

Objective

Minimum

Target

Maximum

Achievement of budgeted profit from recurring operations , restated for exchange rate and scope effects. This criterion, intended to provide an incentive to exceed the target for profit from recurring operations, is one of the key elements of the Group’s decentralised structure. This concept of commitment to the budgeted profit from recurring operations helps to bring together all of the structures, which are rewarded according to the extent to which they meet their own targets for profit from recurring operations. This criterion rewards the management performance of the Executive Director Achievement of budgeted Group share of net profit from recurring operations , restated for exchange rate and scope effects. This criterion takes into account all of the Group’s financial data that fall under the Executive Director’s responsibility for the financial year and thus makes it possible for his compensation to be aligned with that of the shareholders Achievement of budgeted recurring free cash flow , restated for exchange rate and scope effects. This criterion measures the Group’s financial performance and value creation Rate of cash conversion for profit from recurring operations , restated for exchange rate and scope effects. The inclusion of this criterion in the calculation of the variable portion of the Executive Director’s compensation is in line with the Group’s strategy in that it rewards good cash management, regardless of the level of achievement of profit from recurring operations

2.

0%

20%

37.5%

37.5%

0%

20%

37.5%

37.5%

0%

20%

37.5%

37.5%

0%

20%

37.5%

37.5%

71

Pernod Ricard Universal Registration Document 2021-2022