2024 universal registration document

The variable remuneration is based on precise performance appraisal criteria determined at the beginning of the year by the Board of Directors.

These criteria are financial, non-financial and qualitative.

The financial and non-financial criteria are simple and quantifiable. They represent a predominant portion of the annual variable remuneration. A limit is set on the qualitative portion.

The weighting of each of the criteria and the objectives to be met are set at the beginning of the year in question and communicated to the executive corporate officer.

These criteria are the following:

• for 60% of the annual variable remuneration:
  • financial criteria directly correlated with the Company’s performance indicators:
    • change in like-for-like sales as compared to the budget (15%);
    • change in market share compared to that of key competitors (15%);
    • change in operating profit as compared to the budget (10%);
    • change in earnings per share as compared to the budget (10%); and
    • changes in cash flow as a proportion of net profit (10%).

• for 40% of the annual variable remuneration:

  • non-financial criteria, linked in particular to:
    • the progress of the L’Oréal for the Future programme, which combines L’Oréal’s sustainability commitments for 2030 (10%),
    • the implementation of the Human Resources policy with special attention to the development of gender balance in management bodies (7.5%), and
    • the digital development policy (7.5%);
  • qualitative criteria (15%).

The quantifiable, financial (60%) and non-financial (25%) criteria account for 85% of annual variable remuneration.