Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 242

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 242
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 R&D pipeline, and (ii) an external criterion based on improvement in total shareholder return (TSR) relative to that of a benchmark panel of 12 leading global pharmaceutical companies (plus Sanofi): Amgen, AstraZeneca plc, Bayer AG, Bristol-Myers Squibb Inc., Eli Lilly and Company Inc., GlaxoSmithKline plc, Johnson & Johnson Inc., Merck Inc., Novartis AG, Novo Nordisk, Pfizer Inc., and Roche Holding Ltd. To align equity-based compensation on our medium-term performance, a three-year period (2024-2026) is used to measure performance. The above criteria were selected because they align medium-term equity-based compensation on the strategy adopted by Sanofi. The arrangements relating to these awards are as follows: • The Business EPS criterion accounts for 35% of the award (Business EPS represents Sanofi's “business net income” divided by the number of Sanofi shares), and is determined as the average actual-to-budget ratio of Business EPS attained over the entire vesting period at constant exchange rates. The objective cannot be less than the lower end of the range of the annual guidance announced publicly by Sanofi at the start of each year. If the attainment level is less than 95%, no payment will be made for this criterion.

| Business EPS actual-to-budget attainment level (B) | Business EPS  allocation rate |
| If B < 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. This criterion was selected because it is aligned with Sanofi’s current strategic objectives, and is transparent both within and outside the company.

| SANOFIFORM 20-F2024 | 141 |

| PART I                                             |
| ITEM 6. Directors, Senior Management and Employees |

The FCF criterion represents the average actual-to-budget FCF ratio attained over the entire period. The award is based on a target FCF, below which