2020 Annual Financial Report

Chapter 3 : Governance and compensation

Annual variable compensation to be paid in 2021 for financial year 2020

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 criteria linked to the Groupe’s financial performance, each counting equally, for 20% of the variable compensation:
  • organic growth based on the Commitment submitted to the Supervisory Board, and
  • operating margin compared to a peer group;
  • three criteria linked to the financial performance of Publicis Media and PMX in relation to the objectives, for 30% of variable compensation, each being taken into account on an equal basis:
  • organic growth,
  • operating margin, and
  • cash generation;
  • three individual criteria in line with his new role in Europe, each being taken into account on an equal basis and accounting for 45% of variable compensation:
  • setting up effective, clear and robust management in Europe, with clear objectives for each individual,
  • impact on growth of cross-fertilization of skills between countries and disciplines, and
  • setting up global services with the aim of creating clear, value-added services and impacting growth;
  • two CSR criteria, accounting for 5% of variable compensation:
  • 40% women on Executive Committees in Europe, and
  • 6% increase in the Groupe’s consumption of renewable energy to the detriment of fossil fuels (compared with 2019 – 31.3%)

In addition, as indicated in the compensation policy for the 2020 financial year, in the 2019 Universal Registration Document (see Section 3.2.1.1 “Exceptional items related to the Covid-19 pandemic”), the valuation of the performance of Steve King takes into account, for the year 2020, without modifying his overall variable portion as a percentage of the fixed amount, his ability to manage the crisis by ensuring the health and safety of employees, maintaining smooth operations, protecting revenue and the client portfolios, rigorously managing costs, taking appropriate measures for the strict management of resources and the protection of the Groupe’s assets.

In accordance with the compensation policy adopted for the 2020 financial year, the Supervisory Board, after consulting the Compensation Committee, decided to take into account, in its assessment of the performance of Steve King, the way in which the Covid-19 crisis was managed for the fundamental aspects set out in Section 3.2.2.3 of this document.