PERNOD RICARD - 2018-2019 Universal registration document

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CORPORATE GOVERNANCE Compensation policy

Pernod Ricard has not issued any other options granting access to shares reserved for its Executive Directors or the top 10 employees of the Company and all companies within its Group granting options. Employee share ownership plan During the 2018/19 financial year, the Group launched its first Employee Share Ownership Plan (“Accelerate 2019”), rolled out in 18 countries representing approximately 75% of the Group’s workforce. Following the reservation period (from 29 April to 13 May 2019) and the cancellation period (from 19 to 21 June 2019), 5,840 employees had subscribed to the plan, representing an overall participation rate of 41.5%; exceptionally high subscription rates were recorded in India (76.39%), France (56.89%) and China (48.06%). The substantial participation of eligible employees in this plan is a source of genuine satisfaction for Pernod Ricard. It underlines their confidence All employees of the Group’s French companies are eligible for profit-sharing and incentive agreements based on the results of each specific entity. In line with the Group’s decentralised structure, the terms and conditions of each of these agreements are negotiated at the level of each entity concerned. Similarly, outside France, the Group encourages all affiliates to implement local agreements enabling employees to share in the profits of the entity to which they belong. Profit-sharing agreements of this type exist in countries including Ireland and the United Kingdom: in each of these countries, employees may potentially receive Pernod Ricard shares based on their entity’s annual results. Provisions for pension benefits Details of the total amount of provisions recorded or otherwise recognised by the issuer for the payment of pensions are set out in Note 4.7 – Provisions in the Notes to the consolidated financial statements. Compensation of Executive Committeemembers The members of the Compensation Committee are kept regularly informed of changes in the compensation given to members of the Executive Committee. in the Group and its growth prospects. Employee profit-sharing plans

In regularly reviewing the various aspects of compensation, the members of the Compensation Committee pay particular attention to ensuring that the policy applied to the Group’s Executive Director is consistent with the policy applied to the members of the Group’s Senior Management both in France and internationally. The compensation of the members of the Executive Board (excluding the Chairman & CEO), which is set by General Management, comprises a fixed annual portion, plus a variable portion representing an attractive incentive, for which the criteria are largely based on the Group’s financial performance, as is the case for the Executive Director. Qualitative criteria to evaluate individual performance are also applied to this variable financial portion. The Chairmen of the Group’s direct affiliates, who are members of the Executive Committee, also receive compensation comprising a fixed portion, which is set in proportion to individual responsibilities, plus a variable portion, for which the quantitative criteria depend firstly on the financial performance of the entity they manage and secondly on the Group’s results, with a view to strengthening solidarity and collegiality. The Chairmen are also evaluated using individual qualitative criteria. The same performance indicators thus apply to the key players in the Group’s business development, through the structure of and the method for evaluating the variable portion of their annual compensation. For a number of years, all members of the Executive Committee, including the Chairman & CEO, have also been evaluated on the basis of their employee development and management performance and the implementation of Sustainability & Responsibility (S&R) projects. The total amount of fixed compensation awarded to the members of the Executive Committee, including the Executive Director, amounted to €7.7 million for FY19 (the same amount as in FY18). In addition to this, variable compensation (relating to FY18) of €6.5 million was paid (compared with €6.4 million in FY18). The total recurring expense in respect of pension commitments for members of the Executive Committee, including the Executive Director, was €5 million in the financial statements for the year ended 30 June 2019 (compared with €4.4 million as at 30 June 2018).

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT