Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 221

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 221
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. He may be removed from office on legitimate grounds at any time by the Board of Directors. The compensation policy for the Chief Executive Officer is established by the Board of Directors, acting on the recommendation of the Compensation Committee. The compensation structure is not subject to annual review and is applicable for as long as it remains unchanged. The arrangements for implementing the policy may vary from year to year; a table showing the changes made to those arrangements in 2025 and 2024 is provided at the end of the present section. The overall compensation of the Chief Executive Officer is determined with reference to practices adopted by (i) a panel of companies in the CAC 40 and (ii) a panel of pharmaceutical companies with which Sanofi is in competition. Because Sanofi operates in a particularly competitive international environment and has broad geographical reach (with over three-quarters of its net sales generated in the United States and non-European countries), a panel is used comprising the Chief Executive Officer compensation of 12 leading global pharmaceutical companies with comparable levels of net sales to Sanofi, but with no limitation as to geography (1) . That panel has remained unchanged since 2020. This consistency with market practice is fundamental in order to attract and retain the talents necessary to our success, but does not imply that Sanofi should adopt in every respect practices that are in some cases widely divergent, especially as regards the level of long term compensation. Panel of CAC 40 companies Local practices are reviewed by reference to a panel of 14 CAC 40 companies (2) with a comparable profile to Sanofi in terms of market capitalization, net sales, market presence, return on capital employed, etc; the panel was selected with assistance from an independent consultant (3) . This study showed that Sanofi is in the fourth quartile of the panel in terms of market capitalization, and close to the panel median in terms of net sales. Based on the panel, the fixed compensation of our Chief Executive Officer is above the median, while his target short-term compensation (fixed plus variable) is in the third quartile. His equity-based compensation is in the fourth quartile of the panel, largely because our Compensation Committee takes into account practices adopted by our pharmaceutical industry competitors (see below). His target overall compensation (fixed, variable and equity-based) is in the lower range of the fourth quartile. Panel of pharmaceutical companies In 2024, on the basis of information published as of the date of this annual report, the median fixed compe nsation of the Chief