2019 Annual financial report

Chapter 3. Governance and Compensation

Annual variable compensation to be paid in 2020 for financial year 2019

The variable compensation of Jean-Michel Etienne, which, if targets are met, may be as much as 100% of fixed compensation, would be based on:

  • two quantitative criteria linked to the Groupe’s financial performance, each counting equally, for 40% of the variable compensation:
  • organic growth, compared to a peer group. If Publicis Groupe posts the best growth, 100% of the variable compensation on this criterion will be attributed. If Publicis Groupe reports the second-best margin, 75% of the variable compensation will be attributed. If Publicis Groupe reports the third-best margin, 50% or 30% of the variable compensation will be attributed depending on the difference with the second-best performance: if the difference is low (< 10%), 50% of the variable compensation may be attributed and if the difference is high (> 15%), 30% will be attributed. For a difference between 10% and 15%, the Committee will decide the variable compensation percentage that may be attributed,
  • operating margin, compared to a peer group. If Publicis Groupe posts the best margin, 100% of the variable compensation for this criterion will be attributed. If Publicis Groupe reports the second-best margin, 75% of the variable compensation will be attributed. If Publicis Groupe reports the third-best margin, 50% or 30% of the variable compensation will be attributed depending on the difference with the second-best performance: if the difference is low (< 10%), 50% of the variable compensation may be attributed and if the difference is high (> 15%), 30% will be attributed. For a difference between 10% and 15%, the Committee will decide the variable compensation percentage that may be attributed; and
  • four individual financial and non-financial criteria (including three governed by precise quantitative objectives), for 60% of the variable part, each one being taken into account on an equal basis:
  • management and execution of the savings plan,
  • Implementation of the country model,
  • cash flow management, and
  • personnel costs.