PERNOD-RICARD - URD 2021-22 EN
Corporate governance Compensation report
Payment method In accordance with the law, the payment of variable annual compensation will be conditional upon prior approval by the Ordinary General Meeting.
During FY22, 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 10 November 2021, it decided to introduce a share allocation plan (with or without performance conditions, depending on the categories of beneficiaries). 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 conditions of the performance share allocation plan for FY23 will be identical to those of the previous financial year, in accordance with the resolution voted at the General Meeting of 10 November 2021 (resolutions 22).
Long-term incentive policy: allocation of performance shares
The Board of Directors considers that share-based compensation mechanisms, which also benefit other key functions of the Company, are particularly appropriate for the Executive Director, given the level of responsibility of this function and his or her ability to contribute directly to long-term corporate performance in a way that is aligned with shareholders’ interests. In addition, the Board of Directors ensures that the performance conditions are consistent with those applied to the Group’s Senior Managers, particularly the members of the Executive Committee.
2.
Performance conditions The performance shares granted will have a vesting period of three years and will be subject to the following performance conditions:
Breakdown of performance conditions by value
PRO 50%
30%
CSR 20%
TSR
Presence of performance condition PRO (Profit from Recurring Operations)
Relative weight
Criterion detail
Performance assessment methods
50% of the allocation in IFRS value
Average annual achievement of the Group’s Profit from Recurring Operations ( PRO ) budget over three consecutive financial years, restated for scope and exchange rate effects Positioning of the overall performance of the Pernod Ricard share ( TSR ) compared to that of the panel of 12 peers* over a period of three years following the grant of the plan
average ≤ 0.95: 0% of the shares average between 0.95 and 1: linear increase between 0% and 100% of the shares average ≥ 1: 100% of the shares below the median (8 th to 13 th position): 0% of the shares at the median (7 th position): 66% of the shares 6 th , 5 th or 4 th position: 83% of the shares 3 rd , 2 nd or 1 st position: 100% of the shares
TSR (Total Shareholder Return)
30% of the allocation in IFRS value
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Pernod Ricard Universal Registration Document 2021-2022
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