PERNOD RICARD - Universal Registration Document 2019-2020

2. CORPORATE GOVERNANCE Compensation policy

Components of the compensation paid or allocated during FY20 2.8.3 to Mr Alexandre RICARD, Chairman & CEO (10 th  resolution) The compensation paid or allocated for FY20 to Mr Alexandre Ricard, Chairman and Chief Executive Officer, was approved by the Board of Directors at its meetings of 28 August 2019, 8 November 2019 and 1 September 2020 on the proposal of the Compensation Committee. The total compensation decided complies with the compensation policy as approved by the Shareholders’ Meeting of 8 November 2019 (10 th  resolution), and in particular with the relationship between the amounts of variable compensation and the assessment of both the short- and long-term performance of the Company, to which the Chairman & CEO has made a significant contribution.

Amounts paid during the past financial year

Amounts allocated during the past financial year

Components of compensation Fixed compensation

Remarks

€1,100,000

€1,100,000

At its meeting held on 28 August 2019, the Board of Directors, — on the recommendation of the Compensation Committee, decided to maintain Mr Alexandre Ricard’s gross annual fixed compensation at €1,100,000 for FY20 and until the end of his term. At its meeting held on 1 September 2020, the Board of Directors, — on the recommendation of the Compensation Committee and after approval of the financial elements by the Audit Committee, assessed the amount of the variable portion of Mr Alexandre Ricard’s compensation for FY20. Considering the quantitative and qualitative criteria set by the Board meeting — on 28 August 2019 and the achievements recognised as of 30 June 2020, the amount of the variable portion was assessed as follows: for the quantitative criteria, the variable portion amounted to 0% — of Mr Alexandre Ricard’s fixed annual compensation, versus a target of 80% and a maximum of 150%, breaking down as follows: achievement of the budgeted Profit from Recurring Operations — (target 20%, maximum 37.5%): 0%, achievement of the budgeted Group net Profit from Recurring Operations — (target 20%, maximum 37.5%): 0%, achievement of the budgeted Recurring Free Cash Flow — (target 20%, maximum 37.5%): 0%; operating leverage (target 20%, maximum 37.5%): 0% — As a result, as a preliminary step, the qualitative criteria were assessed on — the basis of objectives defined at the beginning of the financial year, i.e. before the health crisis. Thus, they do not take into account the excellent performance of Mr Alexandre Ricard and in particular his very good management of the crisis, which the Board wishes to highlight. The variable portion approved amounted to 27% of Mr Alexandre Ricard’s annual fixed compensation, versus a target of 30% and a maximum of 45%, breaking down as follows: United States: sales growth in value above the market for FY20 (6%/9%): 3%. — Pernod Ricard is broadly in line with the market in both the On-trade and Off-trade channels but impacted in its overall market share by its higher exposure to the On-trade. Robust growth for the drivers in Asia , with India (continuation of strong — double-digit growth and the aggressive value strategy) and China (delivering solid growth with Martell and the premium portfolio) (6%/9%): 6%. Very good performance relative to the market of the Asian growth engines, with continued market share gain in India and continued leadership in China. Improved performance of Absolut (6%/9%): 0%. Slight growth in pre-Covid-19 — sales and continued international development with market share gains. Nevertheless, the brand has not yet stabilised in the United States.

Annual variable compensation

€1,745,810

€297,000

66

Pernod Ricard Universal Registration Document 2019-2020