2 2.4.2.5. Remuneration ratios and annual changes in L’Oréal’s remuneration, ratios  and performance over five years   2017 2018 2019 2020 2021 Remuneration of the CEO, Mr Jean-Paul Agon (€) 9,532,900 9,523,832 9,675,998 4,368,831 (1) 3,059,831 (2) Change/N-1 + 6.90% -0.10% + 1.60% -54.80% -29.96% Average ratio 103 100 96 42 30 Change/N-1 + 5 points -3 points -4 points -54 points -12 points Median ratio 149 144 141 61 43 Change/N-1 + 7 points -5 points -3 points -80 points -18 points Remuneration of the CEO, Nicolas Hieronimus (€) Not applicable   7,768,780 (3) Change/N-1 Not disclosed Average ratio 77 Change/N-1 Not disclosed Median ratio 110 Change/N-1 Not disclosed Remuneration of the Chairman, Mr Jean-Paul Agon (€) Not applicable   1,600,000 (4) Change/N-1 Not disclosed Average ratio Change/N-1 16 Not disclosed Median ratio Change/N-1 23 Not disclosed L’Oréal company average remuneration (€) 92,745 95,207 100,959 104,896 100,694 Change/N-1 + 2.30% + 2.70% + 6.00% + 3.90% -4.01% L’Oréal company median remuneration (€) 64,148 66,167 68,709 72,216 70,729 Change/N-1 + 1.80% + 3.10% + 3.80% + 5.10% -2.06% Group net sales (€bn) 26,023 26,937 29,873.60 27,992.10 32,287.6 Change/N-1 (like-for-like) + 4.80% + 7.10% + 8.00% -4.10% +16.1% Group operating profit (€bn) 4,676 4,922 5,547.50 5,209.00 6,160.3 Change/N-1   + 3.00% + 5.30% + 12.70% -6.10% +18.3% (1) For information purposes, Mr Agon waived any grants of performance shares for which he was eligible in 2020 according to the remuneration policy approved by the Annual General Meeting. (2) The remuneration of Mr Jean-Paul Agon, Chairman and Chief Executive Officer until 30 April 2021, consists of the fixed remuneration for 2021 expressed on an annual basis and the 2020 annual variable remuneration paid in April 2021. Mr Agon did not receive any performance shares in 2021. (3) The remuneration of Nicolas Hieronimus, Chief Executive Officer from 1 May 2021, comprises a fixed remuneration component expressed on an annual basis and a performance share award. (4) The remuneration of Mr Jean-Paul Agon, Chairman of the Board from 1 May 2021, comprises a fixed remuneration component expressed on an annual basis. Methodology used for calculating ratios The ratios presented above take into account the separation of the functions of Chairman and Chief Executive Officer, which took place on 1 May 2021, as the Board of Directors decided to renew the position of Mr Jean-Paul Agon as Chairman of the Board and appoint Nicolas Hieronimus as Chief Executive Officer. Pursuant to Article L. 22-10-9 of the French Commercial Code, for the calculation of average and median remuneration, the scope used is that of L’Oréal S.A., which comprises 9,183 employees as at 31 December 2021 (i.e. 64% of the workforce at L’Oréal France) of whom 6,641 are managers and sales representatives, 2,080 are technicians and supervisors and 462 employees and manual workers. This scope is representative of the various business lines of L’Oréal: Operations (plants and distribution centres), Sales, Marketing, Digital, Research, Support functions, etc. For reasons of comparability, and in accordance with the recommendations of the AFEP, the number of employees selected for the calculation of average and median remuneration corresponds to a full-time equivalent workforce continuously present over 24 months, excluding corporate officers. Remuneration is calculated on the basis of all amounts paid and performance shares granted during the financial year in question. The elements composing the executives’ remuneration used in the calculation are: ● the annual fixed remuneration paid in 2021 ( on an annual basis); ● the annual variable remuneration paid in 2021 ( on an annual basis); and ● the performance shares valued on the grant date in 2021 in  accordance with the IFRS applied for the preparation of the consolidated financial statements. The elements composing employee remuneration used in the calculation are: ● annual fixed remuneration paid in 2021; ● annual variable remuneration paid in 2021; ● other elements of annual remuneration paid in 2021 (excluding exceptional factors); ● the performance shares granted in 2021 valued in accordance with the IFRS applied for the preparation of the consolidated financial statements; and ● the gross Profit-sharing and Incentives paid in 2021. L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 119 CORPORATE GOVERNANCE Remuneration of directors and corporate officers