Compensations

In 2019, the Board of Directors reviewed its policy on equity compensation, which is a reserved power, and decided not to grant any more stock options from 2020 onwards. It wished to standardize the conditions for granting shares to the Board of Directors within the group. Therefore, equity compensation is made up of performance shares only both for the employees and the Chief Executive Officer. It serves to align employee and shareholder interests and reinforce employees’ ties to the Company. All performance shares granted are subject in their entirety to the achievement of multi-year performance criteria. The plans put in place by the Board of Directors in 2019, 2020 and 2021 are conditioned, for employees (except the Chief Executive Officer and Senior Executives, i.e. around 6,000 beneficiaries in 2021) on two internal performance criteria based on the Net Result of Activities and Free Cash Flow (FCF) and, for the Chief Executive Officer and around 450 Senior Executives, on the two aforementioned performance criteria and on a third external criterion (Total Shareholder Return compared to a panel of pharmaceutical companies). The Board of Directors commits to report to its shareholders on the level of performance achieved under these conditions in Sanofi's annual reports (Universal Registration Document and U.S. Form 20-F).

For additional information concerning the equity compensation policies of the Board of Directors, please refer to the following documents: