Universal Registration Document 2025

3.2.5 General principles applicable to the compensation of Groupe employees

Publicis Groupe has introduced a stringent compensation policy designed to motivate employees so that they make their best contribution to the achievement of the Groupe’s strategic objectives and to ensure long-term performance.

The compensation policy for employees is based the following principles: clarity, competitiveness (vis-à-vis competitors and in the markets in which Publicis Groupe operates), internal fairness, performance incentives and gender equality. The structure of compensation is based on the position and responsibilities within the Groupe and may combine the following elements: the base salary (reflecting experience and responsibilities), the variable compensation (which compensates performance during the year) and awards of performance shares, in particular (recognizing and encouraging the contribution to the Groupe’s medium- and long-term performance on the basis of measurable criteria).

The compensation policy applicable to the Groupe’s employees is based on the following objectives:

• attract, develop, retain and motivate the most talented individuals in a business sector/ industry fundamentally based on the quality of employees, and where competition for talent is particularly fierce, especially in the context of the digital transformation, underway throughout the industry and taking place in an extremely competitive general and international environment;
• encourage employees and in particular senior executives to achieve a level of performance which is high, growing and long-lasting within an increasingly competitive environment, where new players from consulting or technological firms have become direct competitors of Publicis Groupe.

3.2.5.1 Key principles

The compensation of Groupe employees is based on the following key principles:

• Pay equity, which must be applied in all agencies and in all markets, without exception and without discrimination;
• Competitiveness and local attractiveness Given the Groupe’s activities, compensation levels are defined according to local market practices and regularly reviewed to remain attractive and competitive. All positions are paid at least the applicable statutory minimum wage and take into account the applicable living wage thresholds.
• Benefits & wellness Complementary social benefits reinforce social security provisions or well-being solutions when necessary.

These principles apply to all employees and senior executives, with adaptations depending on the geographical location to take into account the differences in regulations, market practices and the competitive environment.

They are guided by three objectives:

1. ensure the consistency and competitiveness of compensation on the market;
2. guarantee internal equity, based on individual and collective performance;
3. support the achievement of short-, medium- and long-term financial and operating results, in line with strategic objectives and the interests of all stakeholders.

3.2.5.2 Focus on the “Living wage” and pay equity

Compensation is an essential part of the employment relationship and must guarantee fair and equitable treatment.

Living wage

The living wage definition was presented to the Compensation Committee in 2023:

“Living wage, based on the base wage and supplemented by recurring indirect benefits and long-term recurring benefits such as health and welfare plans and supplementary pension plans, enable employees to purchase the goods and services necessary for them and their families to maintain a healthy and comfortable standard of living. They must cover their needs in terms of food, health, clothing, housing, education and transportation.”

The living wage thresholds from the Wage Indicator database, defined at city level, are compared with the legal minimum wages. The highest threshold is used as a reference for the analysis of employees’ fixed compensation (base salary and fixed allowances).

In 2025, the analysis, which covered all permanent and fixed-term contracts > 1 year in all countries > 1% of the Groupe’s workforce (18 in total), shows that 99.88% of employees receive fixed compensation higher than or equal to the threshold used. For the remaining 0.12%:

• 0.06% have a specific compensation structure: their fixed compensation is below the threshold but their total compensation (including specific and recurring additional elements) is higher than the threshold.
• 0.06% of employees have compensation below the threshold set and action plans are being rolled out to adjust their compensation within a maximum period of 12 months.

Almost all of the Groupe’s employees are professionals who have benefited from extensive initial training and qualifications, and their compensation is therefore generally well above the adequate wage thresholds in all countries.

Analyses will continue to cover the full workforce by 2027 (see the 2024-2027 roadmap table in Section 4.3.8.1 of this document).