/ Arthur Sadoun, Chairman and Chief Executive Officer Structure of the 2026 target compensation(1)
This donut chart presents the executive compensation structure, broken down into two main categories.
Fixed compensation with no performance conditions: 17%.
Variable compensation subject to performance conditions: 83%, comprising annual variable compensation (33%) and long-term compensation (50%).
Performance conditions for long-term compensation, measured over 3 years.
100% financial criteria benchmarked against competitors: 50% Organic Growth and 50% Operating Margin.
Performance conditions for annual variable compensation.
80% financial conditions relative to targets set by the Board: 40% Organic Growth and 40% Operating Margin.
20% non-financial conditions: 10% Impact & Equity and 10% Climate Change Action.
Fixed compensation
The fixed compensation of the Chairman and Chief Executive Officer is determined taking into account several criteria aimed at ensuring internal equity, external competitiveness and recognition of the responsibilities exercised. In particular, it reflects:
- the scope of responsibility and the complexity of tasks;
- the career path and experience of the person holding the position;
- consistency with the levels of compensation for other executive functions (internal equity);
- market practices observed for comparable positions within the CAC 40 and among the Groupe's international competitors (external competitiveness);
- consistency in the achievement of performance objectives, as well as regular surpassing of them.
The fixed compensation of the Chairman and Chief Executive Officer is reviewed every two years, as for other Groupe senior executives, in order to assess its relevance and competitiveness over time.
In accordance with the recommendations of the Afep-Medef Code, the fixed compensation of the Chairman and Chief Executive Officer is in principle only reassessed at relatively long intervals. Any such revision is only made when it is objectively justified, for example by a change in the scope of responsibilities attaching to the position or by the need to reposition compensation in light of market practices and internal comparisons.
The Compensation Committee carried out an in-depth analysis of the positioning of this compensation, compared to that of the executives corporate officers of the CAC 24(2) and with the Groupe’s main international competitors.
As a result, the Committee concluded that Publicis Groupe’s sustained growth, its sustainable outperformance and the strategic transformation carried out in recent years, have positioned Publicis as the leader in the sector and justify a review of the level of fixed compensation of the Chairman and Chief Executive Officer, unchanged since 2022.