Special Bonus for Pernod Ricard Managing Director's
« At its meeting held on January 23, 2008 the Board of Directors of Pernod Ricard approved the implementation of a Special Bonus for Patrick Ricard and Pierre Pringuet. The Special Bonus relates to financial commitments made in the past and it involves a commitment to compensate Patrick Ricard and Pierre Pringuet upon their retiring, whether deliberately or not; as such, it is a commitment under the provisions of the French TEPA Act No. 2007 - 1223 dated August 21, 2007.
Should their careers end upon their retiring from Pernod Ricard after at least 20 years’ seniority within Pernod Ricard and at least 5 years in a Managing Director’s position, Patrick Ricard and Pierre Pringuet would each be given a Special Bonus upon or after the end of their Managing Director’s service; the amount of the Special Bonus would not exceed the annual compensation (fixed and variable portions) paid to them for the year prior to their retirement.
The amount shall be calculated after deducting any other compensation owed to them for leaving their positions (namely, end-of-career compensation - “indemnité de fin de carrière (IFC)” - as per any previous working contract).
By the same token, if an exceptional bonus is paid out during the year of retirement, the Board may replace a portion or the whole amount of the Special Bonus with the exceptional bonus.
The Special Bonus is exceptional in nature and it shaIl not be factored into the calculations of post-employment benefits such as additional pension benefits.
In all instances, the Special Bonus as described above shall be capped at 2 million Euros and it shall be dependent on the achievement of performance criteria.
The performance criteria set by the Board relate to the mean growth in net profit from recurring operations over the ten years prior to retirement and the mean growth in net profit from recurring operations over the three full fiscal years prior to retirement, which takes into consideration both long term and recent performance.
Depending on the actual performance achieved, the Special Bonus may be decreased or even equal to zero ».
In compliance with the French Act dated August 21, 2007 the above shall be submitted to the next Annual General Meeting, i.e. on November 7, 2008.
