Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 223

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 223
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% on an annual basis over the last three years), and (ii) increase th e quantum of his allocation of equity-based compensation for 2025, subject to the ceiling set by the compensation policy (see above). The other components of his compensation would remain unchanged. That overall increase is in line with the average increase for Sanofi employee salaries between 2022 and 2024 in the countries where Sanofi employs the highest number of people (a 13.9% increase across a group of countries representing approximately two-thirds of our workforce). Following that increase, Paul Hudson's short-term compensation (fixed + variable) would remain below the median compensation of the panel of pharmaceutical companies (based on compensation paid in respect of 2023). His equity-based compensation would be slightly above the first quartile. His target overall compensation (fixed + variable + equity-based) would be in the second quartile of the panel . The Board of Directors takes the view that the proposed increase would keep Paul Hudson's compensation competitive relative to practices in the pharmaceutical industry while remaining consistent with practices adopted by the CAC 40 panel. During the decision-making process, our Board of Directors was careful to take into account not only our positioning relative to our peers (size, market capitalization, etc.), but also the specific characteristics of certain markets. Unlike the practices adopted by some pharmaceutical companies, (i) the long-term component, representing 60%-65% of our Chief Executive Officer's overall compensation, is awarded solely in the form of performance shares and (ii) the final number of shares vesting may not exceed 100% of the initial award. Moreover, the overall compensation of our Chief Executive Officer will remain predominantly variable (85%) and subject to the attainment of stringent performance conditions (as illustrated by the historical rates of attainment of annual variable compensation and equity-based compensation since his appointment). To achieve further alignment between the respective interests of Sanofi, the Chief Executive Officer and our shareholders, and to reinforce the stringent nature of the performance conditions, the weighting of the Total Shareholder Return (TSR) criterion for the Chief Executive Officer's performance share plan would be increased from 20% to 30% with effect from 2025. In addition, the Chief Executive Officer is obliged to ret ain, until he ceases to hold office, a number of Sanofi shares equivalent to 50% of the capital gain as calculated on the vesting date, net of associated taxes and contributions. At present, the number of shares that the Chief Executive Officer is obliged