L'Oréal: News release: "Decisions of the L’Oréal Board of Directors
of 12 May 2020"
Decisions of the L’Oréal Board of
Directors of 12 May 2020
- The Annual General Meeting will take place on 30 June
2020 behind closed doors
- L’Oréal renounces an increase of the
dividend
- The Chairman & CEO’s remuneration will be reduced
by 30% for the whole of 2020
- L’Oréal announces the launch of the social and
environmental solidarity programme: "L’Oréal for the
future"
The Board of Directors of L’Oréal gathered for a
meeting on 12 May 2020.
The Board determined the agenda for the Annual
General Meeting of Shareholders on 30 June 2020. Exceptionally, in
the context of the Covid-19 pandemic and in accordance with Order
no. 2020-321 of 25 March 2020, the Board of Directors has decided
that this Annual General Meeting will be held behind closed
doors.
The Board will notably submit the
following resolutions for approval at the Annual General
Meeting:
In the exceptional context of the Covid-19
crisis, the Board of Directors has decided to renounce the planned
increase in the dividend of 10.4%, and consequently to propose to
the Annual General Meeting a dividend of €3.85, identical to the
amount paid in 2019. The dividend will be paid on Tuesday 7 July
2020, with an ex–dividend date of Friday 3 July at
00h00 (CEST).
The Board has also decided to renounce to any
share buyback operations for the whole of 2020, which amounted to
750 million euros in 2019.
-
Remuneration of the
Executive Officer
In view of the exceptional circumstances, and in
a spirit of solidarity, Mr Agon informed the Board that he would
renounce with immediate effect all remuneration for 2020 relating
to the financial targets of his annual variable remuneration, which
represents a reduction of 30% of the maximum amount of his annual
fixed and variable remuneration for 2020, and all attribution of
performance shares, if a plan were to be decided in 2020. The Board
accepted.
Launch of the “L’Oréal for the future”
programme
Furthermore, in the exceptional context of the
Covid-19 pandemic and its consequences, L’Oréal has decided to
create a new social and environmental solidarity programme under
the name of “L’Oréal for the future”.
Fully aware of the challenges that lie ahead and
of the need for active involvement to make tomorrow’s world more
inclusive and sustainable, and in line with its sustainability
programme, LOréal has decided via this new programme:
- to create a philanthropic endowment
fund of 50 million euros to support non-profit organisations that
help women all over the world who are in highly vulnerable
situations, victims of the social and economic crisis;
- to reaffirm its commitment to the
environment and to sustainable development by creating an impact
investing fund of 100 million euros for the regeneration of damaged
natural ecosystems and for combating climate change.
Jean-Paul Agon, Chairman and CEO of
L’Oréal, said: “Over the coming months, our societies will
face social crises giving rise to situations of great human
suffering, particularly for the most vulnerable. At the same time,
we are fully aware that environmental challenges are increasingly
pressing. It is essential not to step back from the sustainable
transformation that the world needs. We therefore wish to reaffirm
our commitment to the environment and to the preservation of
biodiversity, and to help mitigate the social crisis for women.
These two causes reflect the values and the historic commitment of
L’Oréal.”
L’Oréal and the Covid-19
pandemic
Strongly mobilised since the start of the
crisis, L’Oréal has implemented a major solidarity programme. It is
fulfilling its responsibility to take action on behalf of its
stakeholders, with the first priority being Group employees, whose
jobs and salaries have been guaranteed. L’Oréal is also actively
supporting healthcare, its customers and suppliers in more than 40
countries, by providing close to 14 million units of hand sanitiser
and more than 4.3 million units of products, mainly hand cream and
shampoo, produced by 70% of its factories worldwide. Numerous
healthcare initiatives have thus been put in place in the countries
where L’Oréal operates, as well as money donations up to close to 3
million euros. L’Oréal employees have also taken part by giving
more than 1,200 hours of their time to L’Oréal citizenship
programmes. The Group is also providing support to its partners: it
has frozen payments receivable for more than 100,000 clients and
shortened the leadtime for payments for close to 9,000 suppliers.
As for non-profit organisations, the L’Oréal Foundation has made
1 million euros available to support people in need.
Information
about the holding of the Annual General MeetingThe Annual
General Meeting will be held on 30 June 2020 behind closed doors,
without the physical presence of the shareholders and other persons
entitled to attend, at the headquarters of L’Oréal, 41 rue Martre,
Clichy at 10 a.m. The Meeting will be broadcasted on the website
www.loreal-finance.comIn accordance with Decree no. 2020-418 of 10
April 2020, the Board of Directors has designated the companies
Téthys and Nestlé as scrutineers.The notice to attend the meeting,
containing all the information relating to participation in the
Annual General Meeting, will be published in the Bulletin des
annonces légales et obligatoires (BALO) on 25 May 2020 and will be
available online at www.loreal-finance.com, in the “Regulated
Information / Annual General Meeting Documents” section.
Participation terms and conditions and all information relating to
the Annual General Meeting will be available for consultation in
this section of the website.
“This news release does not constitute an offer
to sell, or a solicitation of an offer to buy L’Oréal shares. If
you wish to obtain more comprehensive information about L’Oréal,
please refer to the public documents registered in France with the
Autorité des Marchés Financiers, also available in English on our
Internet site www.loreal-finance.com.This news release may contain
some forward-looking statements. Although the Company considers
that these statements are based on reasonable hypotheses at the
date of publication of this release, they are by their nature
subject to risks and uncertainties which could cause actual results
to differ materially from those indicated or projected in these
statements.”This is a free translation into English of the news
release issued in the French language and is provided solely for
the convenience of English-speaking readers. In case of
discrepancy, the French version prevails.
Contacts at L'Oréal
Individual shareholders and market
authoritiesMr Jean Régis CAROFTel: +33 1 47 56 83 02
jean-regis.carof@loreal.com
Financial analysts and Institutional
investorsMs Françoise LAUVIN Tel: +33 1 47 56 86
82francoise.lauvin@loreal.com
Journalists Ms Domitille FAFIN Tel: +33 1
47 56 76 71
domitille.fafin@loreal.com
Switchboard: +33 1 47 56 70 00
For more information, please contact your bank,
broker or financial institution (I.S.I.N. code: FR0000120321), and
consult your usual newspapers, the Internet site for shareholders
and investors, www.loreal-finance.com or the L’Oréal Finance app,
alternatively, call +33 1 40 14 80 50.
www.loreal-finance.com - Follow us on Twitter
@loreal
- LOREAL_News_release_12_May_2020_EN
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