Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 219

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 219
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 annual variable compensation and equity-based compensation, the Compensation Committee aims to achieve convergence between the performance criteria applied to our Senior Leaders and those applied to the Chief Executive Officer. Our equity-based compensation policy, which aims to align employee and shareholder interests and reinforce loyalty to Sanofi, is a critical tool for our worldwide attractiveness as an employer. Grantees of equity-based compensation plans (including our Chief Executive Officer) can only be awarded performance shares. Awarding performance shares reduces the dilutive effect of equity-based compensation plans while maintaining the same level of motivation for grantees.

| 126 | SANOFIFORM 20-F2024 |

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

Acting on the recommendation of the Compensation Committee, the Board of Directors determines the performance conditions attached to equity-based compensation for all grantees at Sanofi and its subsidiaries worldwide, thereby furthering the attainment of our objectives. The Board of Directors makes any grant of performance shares contingent on multiple, exacting multi-year performance criteria in order to ensure that our equity-based compensation plans incentivize overall performance. Failure to achieve those criteria over the entire performance measurement period results in a reduction or loss of the initial grant. In order to align equity-based compensation with our long-term performance, performance is measured over three financial years (the “vesting period”). Awards of performance shares are also contingent on continued employment in the Sanofi group during the vesting period, followed by stringent lock-up obligations in the case of the Chief Executive Officer (see below). The terms of prior awards cannot be reset subsequently, for instance with less exacting performance conditions. Compensation policy for directors Directors hold office for a four-year term, as specified in our Articles of Association. They may be removed from office by a shareholders’ meeting, at any time and without restriction. The maximum annual amount of overall compensation allocated to the directors was set at €2,500,000 by the Annual General Meeting of May 25, 2023. The arrangements for allocating the overall annual amount set by the Annual General Meeting between the directors are determined by the Board of Directors, acting on a recommendation from the Compensation Committee. Directors’ compensation comprises an annual fixed amount of €30,000, apportioned on a time basis for directors who assumed or left office during the year; and a variable amount, allocated by the Board according to actual attendance at Board and Committee meetings. As required by the AFEP-MEDEF Code, directors’ compensation is allocated predominantly on a variable basis.