Universal Registration Document 2021

Chapter 3. Governance and compensation

Type of plan LTIP 2019-2021 Directoire    
Performance conditions

Performance conditions

LTIP 2019-2021 Directoire

Organic growth rate of Publicis Groupe compared to the 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 performances compared to the reference group Omnicom, WPP, IPG, Publicis Groupe

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
  • Highest organic growth rate compared to the peer group: 100% of the shares delivered;
  • Growth rate in 2nd position: 75% of the shares delivered;
  • Growth rate in 3rd position: 50% or 30% of the shares delivered depending on the difference with the 2nd: if the difference is small (<10%), 50% of the shares will be delivered and if the difference is significant (>15%), 30% of the shares will be delivered. For a difference between 10% and 15%, the Compensation Committee, with the approval of the Supervisory Board, will decide the percentage of the shares that may be delivered.

Acquisition

 
  • Highest operating margin compared to the peer group: 100% of the shares delivered;
  • Margin in 2nd position: 75% of the shares delivered;
  • Margin in 3rd position: 50% or 30% of the shares will be delivered depending on the difference with the 2nd: if the difference is small (<10%), 50% of the shares will be delivered and if the difference is significant (> 15%), 30% of the shares will be delivered. For a difference between 10% and 15%, the Compensation Committee, with the approval of the Supervisory Board, will decide the percentage of the shares that may be delivered.

Acquisition

 
  • 100% of the shares awarded will be delivered if the CSR performance condition is met: at least 40% of women on the Executive Committees of the Groupe, Solutions and major countries.
Performance period

Performance period

LTIP 2019-2021 Directoire

Following a three-year period at the end of which performance is calculated
Stringent criteria

Publicis Groupe strives to use appropriate, transparent 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, 2016 and 2019 demonstrate that grants are based on strict conditions and that they are consistent with shareholders’ interests over the long-term.

Plan 2013-2015 LionLead2 LTIP 2013-2015 Directoire 2016-2018 LTIP Directoire 2016-2018 LionLead3 2019-2021 LTIP Directoire
Achievement rate

Achievement rate

2013-2015 LionLead2

50%

Achievement rate

LTIP 2013-2015 Directoire

53,2%

Achievement rate

2016-2018 LTIP Directoire

50%

Achievement rate

2016-2018 LionLead3

75%

Achievement rate

2019-2021 LTIP Directoire

68,5%

(1)

(1) La performance est de 68,50 % compte tenu des résultats suivants: (i) la croissance organique comparée aux pairs : atteinte partielle (13,50 %), (ii) le taux de marge opérationnelle par rapport aux pairs: atteint (45 %) et (iii) RSE : atteint (10 %).