Danone // 2020 Universal Registration Document

6 corporate governance 6.3 Compensation and benefits of governance bodies DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 253 Compensation of the Chairman and Chief Executive Officer in 2020 Annual fixed compensation The fixed compensation of Mr. Emmanuel FABER, amounting to €1,000,000, has not changed since 2014 when he became Danone’s Chief Executive Officer. This compensation takes into account his experience and his level of responsibility. On May 19, 2020, the Board of Directors decided, in a spirit of solidarity given the Covid-19 health crisis, to reduce the annual fixed compen- sation of the Chairman and Chief Executive Officer by 30% on a one-time basis from July 1 to December 31, 2020. The fixed compensation of Mr. Emmanuel FABER due for 2020 therefore amounts to €850,000. Annual variable compensation Compensation target and annual cap set for 2020 Target amount of annual variable compensation: €1,000,000 Performance conditions and cap Performance indicators Portion of the target amount Potential variation after weighting Economic Quantifiable portion, calculated on the basis of Danone’s economic targets Like-for-like sales growth 25% 0% to 50% Recurring operating margin growth 25% 0% to 50% Free cash flow generation 10% 0% to 20% Total 60% 0% to 120% Social, societal and environmental Reference to Danone’s social, societal and environmental targets Employee engagement 10% 0% to 20% Fulfillment of climate ambitions 10% 0% to 20% Total 20% 0% to 40% Managerial Reference to specific annual targets Organizational leadership 20% 0% to 40% Total 20% 0% to 40% Total 100% 0% to 200% Review of the achievement of objectives by the Board of Directors at its meeting of February 18, 2021, on the recommendation of the Governance Committee The annual variable compensation of Mr. Emmanuel FABER for 2020, amounting to €500,000, represents 50% of the target compensation (compared with €1,025,000 for 2019; this compensation received 97.36% approval at the Shareholders’ Meeting on June 26, 2020 in the 10 th resolution). This compensation represents 50% of the annual fixed compensation and takes into account the following components: Indicators Weighting Percentage of fulfillment Weighted Performance amount (in euros) Economic 60% 16.6% 10% 100,000 Social, societal and environmental 20% 100% 20% 200,000 Managerial 20% 100% 20% 200,000 Total 100% – 50% 500,000