SCH2017_DRF_EN_Livre.indb

3 Corporate governance report

Interests and compensation of Group Senior Management

Positioning in relation to the Company’s performance As illustrated by the graphs below, the Chairman and CEO Mr. Tricoire’s actual compensation has consistently tracked the trend of shareholder returns in terms of share price and enterprise value: Pay-for-performance: analysis for the Chairman and CEO

CEO COMPENSATION VS SHAREHOLDER RETURNS (BASE 100)

CEO COMP. (K€) VS SE SHARE PRICE (€)

k€

€

180

8,000

80

144 153 159

160

6,000

60

140

4,000

40

120

2,000

20

100

0

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 0

80

Comp. after reduction

SE Share Price

60

40

CEO COMP. (K€) VS ENTERPRISE VALUE (MLN€)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

k€

€m

8,000

50,000

Comp. after reduction SE Share Price

Enterprise Value

40,000

6,000

30,000

Note:

the “compensation after reduction” includes, except for 2016 and 2017 which are presented “at target”: - The base salary - The short term incentive earned for the year in reference - The value at grant (IFRS) of the long term inventive (performance shares/ stock options) granted on the year in reference, multiplied by the actual achievement rate.

4;000

20,000

2,000

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 0 10,000

0

Comp. after reduction

Enterprise Value

Pay-for-performance: analysis for the Deputy CEO

The same is true for Mr. Babeau:

DEPUTY-CEO COMPENSATION VS SHAREHOLDER RETURNS (BASE 100)

DEPUTY-CEO COMP. (K€) VS SE SHARE PRICE (€)

k€

€

180

80

4,000

154 166 163

160

3,000

60

140

2,000

40

120

20

1,000

100

0

0

2016 2015 SE Share Price

2010

2011

2012

2013

2014

2017

80

Comp. after reduction

60

2010

2011

2012

2013

2014

2015

2016

2017

DEPUTY-CEO COMP. (K€) VS ENTERPRISE VALUE (MLN€)

€K

€m

Comp. after reduction

Enterprise value

4,000

50,000

SE Share Price

40,000

3,000

Note:

the “compensation after reduction” includes, except for 2016 and 2017 which are presented “at target”: - The base salary - The short term incentive earned for the year in reference - The value at grant (IFRS) of the long term inventive (performance shares/ stock options) granted on the year in reference, multiplied by the actual achievement rate.

30,000

2,000

20,000

1,000

10,000

0

0

2010

2012 2011

2013

2014

2017 2016 2015

Comp. after reduction

Enterprise Value

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