Sanofi's executive compensation policy is designed to align the interests of corporate officers with the company's long-term objectives and shareholder value creation. It comprises fixed and variable components, including equity-based compensation that reflects financial, operational, and non-financial performance. The policy emphasizes simplicity, long-term performance, competitiveness, and a fair balance between corporate interests and stakeholder expectations. The Compensation Committee, which includes independent members, reviews and recommends compensation structures annually, considering market practices and strategic objectives.
In line with our compensation policy for the Chief Executive Officer, and as approved by the Board of Directors meeting of April 30, 2024, Paul Hudson’s annual compensation for 2024 comprised (i) annual fixed gross compensation of €1,400,000 and (ii) annual variable compensation in a range from 0% to 250% of his annual fixed compensation, with a target of 150%, and subject to both quantitative and qualitative criteria. These objectives were 60% based on financial indicators, and 40% based on specific individual objectives.
The compensation policy of our CEO is designed to motivate and reward performance, and to ensure that a significant portion of his compensation is contingent on the attainment of financial, operational and social criteria that are aligned with our corporate interest and with creating shareholder value. A specific individual sustainability performance criterion (short-term incentive – STI) represents 10% of his annual variable compensation package.
The sustainability criteria for equity-based compensation (long-term incentive – LTI) also represent 10%:
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Access to healthcare: providing essential medicines for the treatment of non-communicable diseases through Sanofi Global Health Unit;
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Planet Care: reduction of carbon emissions in scopes 1 & 2 (reduction of emissions vs 2019)
Furthermore, all Executive Committee members also have collective sustainability objectives covering people and climate topics in their annual variable compensation package.