PERNOD RICARD - Universal Registration Document 2019-2020

2. CORPORATE GOVERNANCE Compensation policy

The Board of Directors, on the recommendation of the Compensation the Covid-19 pandemic has impacted only one of the three financial Committee, decided, in accordance with the plan rules, to adjust the years in question.

internal performance condition for all beneficiaries except for the Executive Director, for the performance share plans implemented in 2017, 2018 and 2019, to take into account the exceptional circumstances related to the Covid-19 pandemic. To prevent the impact of the Covid-19 crisis wiping out the awards under these three plans, which would be disproportionate in view of the objectives of profit-sharing and of attracting and retaining talent, the Board of Directors decided to limit the impact of this unprecedented health crisis. For each of these three plans, the FY20 profit from recurring operations prior to the health crisis will be taken into account, applying a discount on the number of shares that can vest of at least 34% of the amount initially awarded. This reflects the fact that to date, History of allocations of stock options – Situation at 30 June 2020 (Table 8 AMF nomenclature)

As a result, the Board of Directors adopted the following adjustments: for the 2017 plan, the internal performance condition assessed with — respect to profit from recurring operations in FY18, FY19 and FY20 was 66% met; for the 2018 and 2019 plans, the final achievement of the internal — performance condition will be determined at the close of the coming financial years, but may under no circumstances allow the vesting of more than 66% of the shares granted under each of the two plans. These adjustments affect all beneficiaries with the exception of the Executive Director.

Plan dated 06.11.2015

Plan dated 17.11.2016

Plan dated 09.11.2017

Plan dated 21.11.2018

Plan dated 08.11.2019

Date of authorisation by Shareholders’ Meeting

06.11.2015

06.11.2015

06.11.2015

06.11.2015

08.11.2019

Date of Board of Directors’ meeting

06.11.2015

17.11.2016

09.11.2017

21.11.2018

08.11.2019

Type of options

Purchase

Purchase

Purchase

Purchase

Purchase

Total number of options that can be subscribed or purchased

278,575

150,008

124,050

109,492

131,864

of which by the corporate officers of Pernod Ricard SA

28,200

39,445

39,445

32,006

28,831

of which by Mr Alexandre Ricard

20,700

31,400

25,050

26,143

22,545

of which by Mr César Giron

7,500

8,045

7,000

5,863

6,286

Commencement date for exercise of options

07.11.2019

18.11.2020

10.11.2021

22.11.2022

09.11.2023

Expiry date

06.11.2023

17.11.2024

09.11.2025

21.11.2026

08.11.2027

Subscription or purchase price (€) (1)

102.80

105.81

126.53

137.78

162.79

Number of shares subscribed or purchased

67,614

0

0

0

0

Total number of stock options cancelled or lapsed  (2)

96,068

25,506

0

0

0

of which allocated to Mr Alexandre Ricard

7,038

5,338

0

0

0

of which allocated to Mr César Giron

2,550

1,368

0

0

0

Subscription or purchase options remaining

114,893

124,502

124,050

109,492

131,864

N/A: not applicable. The purchase price of the shares by the beneficiaries corresponds to the average of the closing prices recorded during the 20 trading sessions preceding the day on (1) which the options were granted. Options cancelled after the beneficiaries failed to meet the continuous service and/or performance conditions. During FY20, 25,506 stock options granted under the (2) 17.11.2016 plan were cancelled in application of the external performance condition (83% of the amounts initially awarded). On 30 June 2020, 604,801 options (all for share purchases) were in circulation, corresponding to approximately 0.23% of the Company’s share capital; all these options were “in the money” (at the Pernod Ricard share closing price on 30 June 2020 = €140.05). At present, there are no Pernod Ricard “subscription” stock options in circulation. Stock options granted to the Group’s top 10 employees other than corporate officers and options exercised by these employees during FY20 (Table 9 AMF nomenclature)

Number of options granted / exercised

Exercise price (in euros)

Plans

Options granted during the financial year by the issuer and any companies within its Group granting options to the top 10 employees (1) of the issuer and any such Group company, receiving the highest number of options Options held on the issuer and the companies included in the scope of allocation of the options exercised, during the year by the top 10 employees of the issuer and any company included in this scope, exercising the highest number of options

45,095

€162.79

08.11.2019

11,032

€102.80

06.11.2015

In FY20, only 7 employees of Pernod Ricard SA received options. (1)

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Pernod Ricard Universal Registration Document 2019-2020

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