2022 Universal Registration Document

Illustration of the compensation policy in 2023: Components of remuneration attributable to Mr Nicolas Hieronimus, Chief Executive Officer

The structure of Mr Nicolas Hieronimus’ remuneration is in line with the principles developed in section 2.4.1.2.1. of the remuneration policy applicable to the executive corporate officer, and forms a balanced whole with a breakdown that is approximately:

50/50 between fixed remuneration and target annual variable remuneration;
50/50 between annual remuneration and long-term remuneration (performance shares);
50/50 between cash remuneration and share-based remuneration; and
75/25 between remuneration subject to performance conditions and remuneration not subject to performance conditions.

Mr Nicolas Hieronimus’ annual variable remuneration may exceed 100% of his fixed remuneration and up to a maximum of 120% in order to be able to remunerate out performance. This out performance will be assessed on a criterion-by-criterion basis.

The Board of Directors will be called upon to decide on a granting of performance shares in 2023 in accordance with the remuneration policy submitted for the approval of the Annual General Meeting of 21 April 2023.

	Amount	Description
Fixed remuneration	Fixed remunerationAmount €2,000,000	Fixed remunerationDescription At its meeting of 9 February 2023, on the recommendation of the Human Resources and Remuneration Committee, the Board of Directors is proposing to the Annual General Meeting of 21 April 2023 to maintain the fixed remuneration of Mr Nicolas Hieronimus at the gross amount of €2,000,000 on an annual basis.
2022-2023 changes	2022-2023 changes Amount 0%	2022-2023 changes Description This amount has not changed since 2021.
Annual variable remuneration	Annual variable remunerationAmount €2,000,000 (target 100% of the fixed amount) Maximum 120% of the fixed amount, or €2,400,000	Annual variable remunerationDescription The annual variable remuneration is designed to align the executive corporate officer’s remuneration with the Group’s annual performance and to promote the implementation of its strategy year after year. The Board of Directors strives to encourage the executive corporate officer both to maximise performance for each financial year and to ensure that it is repeated and regular year-on-year. The annual variable remuneration may reach 120% of the fixed remuneration if there is out performance on the objectives; the target is set at 100% of the fixed remuneration.
	Amount	Description The annual variable remuneration may reach 120% of the fixed remuneration if there is out performance on the objectives; the target is set at 100% of the fixed remuneration.
	Amount	DescriptionCriteria for assessment of performance for 2023 Weightings
	Amount	Description Financial criteria 60% Evolution in like-for-like sales as compared to the budget 15% Evolution in market share as compared to the main competitors 15% Evolution in operating profit as compared to the budget 10% Evolution in net earnings per share as compared to the budget 10% Evolution in cash flow as compared to the budget 10% Non-financial and qualitative criteria 40% Quantifiable criteria: 25% - L’Oréal for the Future: sustainable development commitments for 2030 10% - L’Oréal for the Future: sustainable development commitments for 2030 training 7,5% - Digital development 7,5% Individual qualitative performance: 15% - Management 7,5% - Image, company reputation, dialogue with stakeholders 7,5%
	Amount	Description The quantifiable, financial (60%) and non-financial (25%) criteria account for 85% of annual variable remuneration. The weighting of each of these criteria, both financial, non-financial and qualitative, and the targets to be met were set at the start of the year and communicated to the executive corporate officer. The assessment is made without offsetting among criteria.