3 _135 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 3 CORPORATE GOVERNANCE REPORT Information about the components of compensation paid or awarded to the corporate officers For this reason, the Company has chosen to disclose these ratios for the Group's four main French companies(1), which together employed over 82% of the Michelin Group's total workforce in France as of December 31, 2022. These subsidiaries are engaged in manufacturing, sales, and research and development activities and one of them hosts the vast majority of the Michelin Group's corporate departments. Like the previous year’s report, the 2023 report has been prepared by applying the “Guidelines on Compensation Multiples” published by the AFEP in February 2021. The two performance indicators selected at the level of the Michelin group are total sales and segment operating income (“SOI”) excluding changes in exchange rates, which measures the performance of the Group's operating segments. The ratios presented below have been calculated in such a way as to disclose information related to the function, in order to guarantee, as far as possible, the relevance and consistency of comparative information across the entire reporting period. They are based on the fixed and variable compensation and benefits in kind and other bonuses paid during the years indicated (i) to the corporate officers and (ii) to employees who were present throughout the year, as well as on the performance shares awarded in those years, measured at fair value. The 2023 increases and ratios for the Chair of the Supervisory Board should be considered in the light of the 2023 compensation policy(2) approved by the Annual Shareholders Meeting of May 12, 2023 by a majority of 99.65% of the votes cast. This policy provided for an increase in her annual compensation to €400,000, which is less than the median compensation of €450,000 paid by CAC 40 companies to a nonexecutive Chair of the Board who did not previously hold an executive position. The total amount paid in 2023 to the Chair of the Board (€470,000) represented the sum of: ● €120,000 paid in consideration of her duties as both member and Chair of the Supervisory Board in the previous year (2022), as provided for in the 2022 compensation policy (note that under the 2023 compensation policy, only the amount in consideration of her duties as member of the Supervisory Board (€50,000) is payable the following year); ● €350,000 paid in consideration of her duties as Chair of the Supervisory Board during the year (2023). (1) Manufacture Française des Pneumatiques Michelin, Compagnie Générale des Établissements Michelin, Pneu Laurent, Caoutchouc Synthétique Michelin. (2) Described on pages 114 and 115 of the 2022 Universal Registration Document. The policy states that, of the total, €350,000 concerns her duties as Chair of the Supervisory Board (payable during the year), and €50,000 concerns her duties as Board member (payable the following year).
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