PERNOD-RICARD - URD 2021-22 EN

2. Corporate governance Compensation report

The table below has been drawn up taking into account the model circulated by the AFEP in its guidelines updated in February 2021.

Table of ratios for I. 6° and 7° of article L. 22-10-9 of the French Commercial Code

FY22

FY18

FY19

FY20

FY21

Change (%) in the compensation of Mr Alexandre Ricard, Chairman and CEO (1)

17%

19%

5%

-33%

80%

Information on the scope of the listed company

Change (%) in average employee compensation Change (%) in median employee compensation Ratio compared to average employee compensation Change (%) compared to the previous financial year Ratio compared to median employee compensation Change (%) compared to the previous financial year Change (%) in average employee compensation Change (%) in median employee compensation Ratio compared to average employee compensation Change (%) compared to the previous financial year Ratio compared to median employee compensation Change (%) compared to the previous financial year Additional information on the extended scope

-8.1% -1.4% 33.76

-0.4%

7.8% 4.5% 39.12 -2.6% 67.68

2.9%

18.5% 18.5% 38.60 52.1% 67.38

-1.2% 40.17 19.0% 67.43 20.0%

2.1%

25.38

-29.8%

-35.1%

56.21

44.31

-34.6%

0.4%

-34.5%

52%

N.C. N.C.

-0.5%

6.4%

0.6% 4.2% 42.24 -33.7%

4.5% 6.1% 72.87 72.5%

0.1%

-2.9% 63.71 -1.2% 89.86

54.15

64.49 19.1% 83.15 18.4%

N.C.

70.25

57.58

97.81

N.C.

8.2%

-36.0%

69.9%

Company performance

Profit from recurring operations

2,358

2,581

2,260 -13.7%

2,423 18.3%

3,024 19.0%

Change (%) compared to the previous financial year (2)

6.3%

8.7%

N.C. Not calculable. Elements explaining the variation of the ratio as regards the compensation of the Chairman and CEO taken into account: (1) FY18: payment of the FY17 bonus with an achievement rate of 131%, whereas the bonus paid in FY17 in respect of FY16 represented 96%; FY19: increase in the fixed compensation and payment of the bonus for FY18, with an achievement rate of 161%; FY20: payment of the bonus due in respect of FY19, with an achievement rate of 159%; FY21: impact of the Covid-19 crisis on the FY20 variable compensation paid during the financial year; FY22: increase in the fixed compensation and payment of the bonus for FY21, with an achievement rate of 180%. In organic growth, restated for foreign exchange and scope effects. (2)

quantitative criteria depend firstly on the financial performance of the entity they manage and secondly on the Group’s results, with a view to strengthening solidarity and collegiality. The Chairmen are also evaluated using individual qualitative criteria. The same performance indicators thus apply to the key players in the Group’s business development, through the structure of and the method for evaluating the variable portion of their annual compensation. For a number of years, all members of the Executive Committee, including the Executive Director, have also been evaluated on the implementation of Corporate Social Responsibility (CSR) projects. Total fixed compensation awarded to the members of the Executive Committee, including the Executive Director, amounted to €7.9 million for FY22 (compared to €7.3 million for FY21). In addition to this, variable compensation (relating to FY21) of €8.3 million was paid (compared with €3.1 million paid in FY21). This significant change in variable compensation between the two financial years is due to the negative impact of the health crisis on the Group’s financial results, i.e. the quantitative portion of variable compensation, which sharply reduced the amounts paid out in FY21 (relating to FY20). The amount paid during this financial year is similar to that of year N-2 (€7.1 million) and marks a return to a normal situation.

Compensation of Executive Committee members The Compensation Committee members are kept regularly informed of changes in the compensation given to members of the Executive Committee. They ensure consistency between the compensation policy for Executive Directors and the members of the Executive Committee and the integration of social responsibility criteria in their variable compensation. In regularly reviewing the various aspects of compensation, the members of the Compensation Committee pay particular attention to ensuring that the policy applied to the Executive Director is consistent with the policy applied to the Group’s Senior Management both in France and internationally. The compensation of the members of the Executive Board (excluding the Chairman and CEO), which is set by Senior Management, comprises a fixed annual portion, plus a variable portion representing an attractive incentive, for which the criteria are largely based on the Group’s financial performance, as is the case for the Executive Director. Qualitative criteria to evaluate individual performance are also applied to this variable financial portion. The Chairmen of the Group’s direct affiliates, who are members of the Executive Committee, also receive compensation comprising a fixed portion, which is set in proportion to individual responsibilities, plus a variable portion, for which the

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Pernod Ricard Universal Registration Document 2021-2022

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