Pursuant to the criterion relating to sales, in order for all the free shares granted to be fully vested by the beneficiaries at the end of the vesting period, L’Oréal must outperform the average growth in sales of the panel of competitors. Below this level, the grant decreases. If L’Oréal’s comparable growth in net sales is less than the average growth in sales of the panel of competitors over the period, no share will be allocated for this criterion. The Board of Directors defines a threshold, not made public for confidentiality reasons, below which no share will finally vest pursuant to this criterion.
Pursuant to the criterion relating to operating profit, in order for all the free shares granted to be fully vested by the beneficiaries at the end of the vesting period, a level of growth defined by the Board of Directors, but not made public for confidentiality reasons, must be met or exceeded. Below this level, the grant decreases. If the operating profit does not increase in absolute value over the period, no share will finally vest pursuant to this criterion.
Pursuant to the criterion relating to the achievement of the L’Oréal for the Future Commitments, in order for all the free shares granted to be fully vested by the beneficiaries at the end of the vesting period, an average of 65% of the L’Oréal for the Future Commitments must be achieved during the vesting period. Below this level, the grant decreases. No shares will vest if the average level of achievement for the L’Oréal for the Future Commitments falls below 50%.
Pursuant to the criterion relating to gender balance in strategic positions, in order for all the free shares granted to be fully vested by the beneficiaries at the end of the vesting period, the average representation of one of the sexes must account for at least 40% of employees in strategic positions.
Below this level, the grant decreases. No shares will vest in relation to this criterion if the average representation of one of the sexes is less than 35% over the vesting period.
The Human Resources and Remuneration Committee is responsible for communicating to the Board of Directors the level of indicators recorded for the years to be used for the calculation of the performance conditions. The Board of Directors records, at the appropriate time, the level of performance achieved on which the number of shares that finally vests depends.
The figures recorded each year to determine the levels of performance achieved are published in sections 7.4.3.5. and 7.4.3.6.
The vesting of the first 100 conditional grants of shares is not subject to fulfilment of the performance conditions except for beneficiaries who were members of the Executive Committee on the date they were granted, including the Chief Executive Officer.
The total number of shares granted in 2022 to the ten employees other than directors or corporate officers who received the largest number of shares was 78,400 shares.
| Date of authorisation by the Extraordinary General Meeting | 17.04.2018 | 30.06.2020 | 30.06.2020 | 21.04.2022 |
|---|---|---|---|---|
| Date of grant by the Board of Directors | 18.04.2019 | 14.10.2020 | 07.10.2021 | 13.10.2022 |
| Total number of shares conditionally granted | 843,075 | 713,660 | 588,750 | 700,000 |
|
Of which the ten employees other than directors or corporate officers granted the largest number of shares(1) |
128,000 | 111,250 | 72,400 | 78,400 |
| Number of beneficiaries | 2,107 | 2,208 | 2,408 | 2,647 |
| Performance conditions |
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|
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| Date of final vesting | 19.04.2023 | 15.10.2024 | 08.10.2025 | 14.10.2026 |
| End of lock-in period | N/A | N/A | N/A | N/A |
(1)Employees who are not directors or corporate officers of L’Oréal or employees of companies included within the scope of the grant of shares.
(2)The panel consists of the following companies: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Johnson & Johnson, Henkel, LVMH, Kao and Coty.
