Type of plan | LTIP 2019-2021 Directoire | ||
---|---|---|---|
Performance conditions | Performance conditions LTIP 2019-2021 Directoire Organic growth rate of Publicis Groupe compared to a peer group | Performance conditions
Operating margin of Publicis Groupe compared to a peer group | Performance conditions
A CSR criterion |
Type of performance conditions | Type of performance conditions LTIP 2019-2021 Directoire Relative performance compared with the peer group Omnicom, WPP, IPG, Publicis Groupe | Type of performance conditions
| Type of performance conditions
|
Weighting | Weighting LTIP 2019-2021 Directoire 45% of shares awarded | Weighting
45% of shares awarded | Weighting
10% of shares awarded |
Acquisition | Acquisition LTIP 2019-2021 Directoire
| Acquisition
| Acquisition
|
Performance period | Performance period LTIP 2019-2021 Directoire Following a three-year period at the end of which performance is calculated | Performance period
| Performance period
|
Publicis Groupe strives to use appropriate and ambitious criteria. These criteria are based on a quantifiable, performance-related assessment (encouraging Publicis Groupe management to deliver the best results in the market) as well as complete transparency, results being measured against public data. These decisions turn the plans into a tool for motivating and retaining Publicis Groupe management. The historic rates of achievement of performance conditions for the various plans that have been established show how relevant and extremely ambitious the criteria used are, making it possible to align Groupe and shareholder interests over the long term.
As an illustration, the rates of achievement of performance conditions for plans awarded in 2013 and 2016 demonstrate that grants are based on strict conditions and that they are consistent with shareholders’ interests over the long-term.
Plan | 2013-2015 LionLead2 | 2013-2015 LTIP Directoire | 2016-2018 LTIP Directoire | 2016-2018 LionLead3 |
---|---|---|---|---|
Achievement rate | Achievement rate 2013-2015 LionLead2 50% | Achievement rate 2013-2015 LTIP Directoire 53.2 % | Achievement rate 2016-2018 LTIP Directoire 50% | Achievement rate 2016-2018 LionLead3 75% |
The shares of the LTIP 2019-2021 Directoire and LTIP 2021 Directoire plans will be delivered, subject to final validation and external appraisal of the performance conditions, on June 14, 2022 for the LTIP 2019-2021 Directoire and March 16, 2024 with respect to the LTIP 2021 Directoire.
The Supervisory Board considers that consistency in the performance conditions helps to create long-term value. This is why the performance criteria concerning organic revenue growth and the Groupe’s operating margin have been used since 2003 in long-term compensation programs and for annual variable portions.
In accordance with the Afep-Medef Corporate Governance Code revised in June 2018, a CSR criterion was introduced in 2019.
The same performance conditions have been used to date for all of the Groupe’s long-term compensation programs, whether they relate to Management Board members or other executives. The main objective is to align the interests of the entire management team with the Groupe’s strategic objectives.