Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 247

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 247
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 shares were awarded in 2024 to members of the Executive Committee (excluding the award to the Chief Executive Officer). No stock options were awarded to members of the Executive Committee or the Chief Executive Officer in 2024. In compliance with the AFEP-MEDEF Code, all awards are contingent upon four internal criteria: business earnings per share (Business EPS), free cash flow (FCF), a CSR criterion, and a new criterion linked to the R&D pipeline. An external criterion based on total shareholder return (TSR) is also applied. Those criteria were selected because they align equity-based compensation with the strategy adopted by Sanofi. The Board believes that the performance conditions applied are good indicators of shareholder value creation in terms of the quality of investment decisions and the commitment to deliver exacting financial results in a difficult economic environment. The arrangements relating to these awards are as follows: • The performance criterion based on business earnings per share (Business EPS) accounts for 35% of the award. Business EPS represents Sanofi's “business net income” divided by the number of Sanofi shares; this criterion corresponds to the average actual-to-budget ratio of Business EPS attained over the entire period. Budgeted business net income is derived from the budget as approved by the Board of Directors at the beginning of each financial year. The Business EPS objective may not be lower than the bottom end of the full-year guidance range publicly announced by Sanofi at the beginning of each year. If the ratio is less than 95% of the objective, the corresponding performance shares are forfeited.

| Business EPS actual-to-budget attainment level (B) | Business EPS  allocation rate |
| If B is < 95%                                      | 0%                            |
| If B = 95%                                         | 50%                           |
| If B is > 95% but < 98%                            | (50 + [(B –95) x 16])%        |
| If B is ≥ 98% but ≤ 105%                           | B%                            |
| If B is > 105% but < 110%                          | (105 + [(B –105) x 3])%       |
| If B is ≥ 110%                                     | 120%                          |

• The FCF criterion accounts for 25% of the award. It represents the average actual-to-budget ratio of FCF attained over the entire period. The award is based on a target FCF, below which some or all performance shares are forfeited.

| FCF actual-to