Annual variable compensation to be paid in 2020 for financial year 2019
The variable compensation of Steve King, which, if targets are met, may represent up to 160% of his fixed compensation, without exceeding this percentage, is based on:
- two quantitative criteria linked to the Groupe’s financial performance, each counting equally, for 20% 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
- three quantitative criteria linked to the financial performance of Publicis Media in relation to the objectives, for 60% of the variable part, each being taken into account on an equal basis:
- organic growth,
- operating margin, and
- cash generation;
- two individual criteria consistent with his main areas of responsibility, for 20% of the variable part, each being taken into account on an equal basis:
- preparation for the successful implementation of five Marketing Transformation practices by January 2020, and
- the development of PeopleCloud and the training of teams capable of managing it in key countries.
