2019 Annual financial report

Chapter 3. Governance and Compensation

These financial and stock exchange performance criteria were chosen by the Supervisory Board, following the proposal of the Compensation Committee, because they best express the quality of the Company’s performance. Three of them are measured in comparison with the main competitors of Publicis Groupe, they encourage overperformance;

  • non-financial individual criteria corresponding to 25% of the overall weight of the criteria in order to value the implementation of strategic actions which will yield long-term effects on the Groupe’s development:
    • implementation of the “Sprint to the Future 2020” plan for 9%,
    • dissemination of the “Power of One” throughout the entities for 8%, and
    • development of the Publicis PeopleCloud for 8%.

/ Criteria linked to the financial performance of Publicis Groupe

Objectives
Results
Percentage of objective met
Amount of target variable compensation
Amount of variable compensation to be paid
Objectives

Organic growth
Results

With organic growth of -2.3%, Publicis Groupe is at the bottom of the peer group.
Percentage of objective met

Not met
Amount of target variable compensation

€500,000
Amount of variable compensation to be paid

€-
Objectives

Operating margin
Results

With an operating margin of 17.3%, Publicis Groupe is number one in the peer group.
Percentage of objective met

100% met
Amount of target variable compensation

€500,000
Amount of variable compensation to be paid

€500,000
Objectives

Rate of change of diluted earnings per share for the Groupe and Total Shareholder Return (TSR)
Results

Current diluted EPS (2019 growth vs. 2018-2017 average) of Publicis Groupe: 10.2%.

Average of the Group of 4: 4.4%.

Average of the Group of 3: 2.4%.
Percentage of objective met

100% met
Amount of target variable compensation

€400,000
Amount of variable compensation to be paid

€400,000
Objectives

 
Results

TSR: -10.04
Percentage of objective met

Not met
Amount of target variable compensation

€100,000
Amount of variable compensation to be paid

€-

 

/Non-financial individual criteria

Objectives & Results
Percentage of objective met
Amount of target variable compensation
Amount of variable compensation to be paid
Objectives & Results

Implementation of the “Sprint to the Future 2020” plan

The implementation of the Sprint to the Future plan is ahead of schedule with regard to the strategic and operating objectives: very strong growth thanks to the integration of game changers, 80 clients now benefit from the Groupe Client Lead organization, the country model has been implemented in ten markets or regions (which is in line with the objectives), investment in our strategic expertise has reached 100 million in 2019.
Percentage of objective met

100% met
Amount of target variable compensation

€180,000
Amount of variable compensation to be paid

€180,000
Objectives & Results

Roll out of the Power of One

The Power of One model led to new account wins, including GSK, Disney, Beiersdorf, Novartis, AXA, Mondelez.
Percentage of objective met

100% met
Amount of target variable compensation

€160,000
Amount of variable compensation to be paid

€160,000
Objectives & Results

Development of the Publicis PeopleCloud

With regard to PeopleCloud, the acquisition of Epsilon has led to a transformation on an even greater scale than expected, to make Epsilon PeopleCloud.
Percentage of objective met

100% met
Amount of target variable compensation

€160,000
Amount of variable compensation to be paid

€160,000
Objectives & Results

Total (Financial and non-financial criteria)
Percentage of objective met

 
Amount of target variable compensation

 
Amount of variable compensation to be paid

€1,400,000