The Board of Directors has taken into account Jean-Paul Agon’s full commitment to serving the governance of the Company and performing the specific duties set out in section 2.1.2.3. The Board is fully aware of the challenges of sustainable governance, notably in light of European legislative initiatives and the growing expectations of authorities and stakeholders.
It is essential for the Board that the Chairman remains committed and experienced with in-depth knowledge of the business, its environment and strategic challenges, and recognised for their expertise in governance issues and stakeholder relations.
The Board is satisfied that the fixed remuneration is competitive in comparison with an international reference panel that was put in place with the assistance of independent consultancy firm Mercer, by ensuring that it is higher than the median remuneration paid to the chairs of the Boards of Directors of 16 international benchmark companies.
Illustration of the remuneration policy in 2025: components of remuneration attributable to Jean-Paul Agon, Chairman of the Board of Directors
| Amount | Description | |
|---|---|---|
| Fixed remuneration |
Fixed remunerationAmount
€950,000 |
Fixed remuneration Description At its meeting of 13 March 2025, on the recommendation of the Human Resources and Remuneration Committee, the Board of Directors proposed to the Annual General Meeting of 29 April 2025 that Jean-Paul Agon’s annual fixed remuneration be maintained at a gross amount of €950,000. |
| Benefits in addition to remuneration |
Benefits in addition to remuneration Amount
|
Benefits in addition to remuneration Description Benefits in kind Jean-Paul Agon will benefit from the material resources needed to carry out his duties such as, for example, the provision of a car with a driver. These arrangements, which are strictly limited to professional use and may not be used for any private use, are not benefits in kind. Additional social protection schemes The Chairman of the Board will benefit from the same employee benefit scheme as the company's senior executives. |
Remuneration is established in such a way as to guarantee the due and proper application of the policy and rules set by the Board of Directors. The Board relies on the work and recommendations of the Human Resources and Remuneration Committee, comprising six Directors, 60% of whom are independent Directors(1), including its Chairwoman, and one member who is a Director representing the employees. The executive corporate officer is not a member of the Committee. The Committee’s recommendations are made taking into account the studies carried out at its request by an independent consultant.
The Human Resources and Remuneration Committee met five times in 2024 (see section 2.3.3 for details of its work during the year).
The Committee has the necessary information to prepare its recommendations and more particularly to assess the performance of the executive corporate officer in light of the Group’s short- and long-term objectives.
This organisation and process are designed to prevent any conflicts of interest.
The Human Resources and Remuneration Committee uses the studies conducted by an independent consultancy firm
These studies were based on an international panel of leading global companies, which serves as a benchmark for comparative remuneration studies.
Executive corporate officer
This panel is made up of a range of leading global French and international companies that operate on similar markets and are L’Oréal's direct competitors in the cosmetics sector, or operate on the wider consumer goods, luxury or pharmacy markets for all or a portion of their business activities.
The panel applicable comprised executive corporate officers from the following 13 companies:
| PANEL SELECTED FOR ANALYSIS OF THE POSITIONING OF THE REMUNERATION FOR THE CHIEF EXECUTIVE OFFICER | |||
|---|---|---|---|
| Beiersdorf | Colgate Palmolive | EssilorLuxottica | Estée Lauder |
| GSK | Henkel | Kenvue | Kering |
| LVMH | Novartis | Pepsico |
Procter & Gamble |
| Unilever | |||
It is used to assess the competitiveness and structure of the executive corporate officer’s total remuneration. This panel reports an overall average remuneration of €11,482,800 and an overall median remuneration of €10,420,500.
It should be noted that the Company’s remuneration policy, especially that in place for senior executives, aims to position their remuneration between the median and the third quartile.
