PERFORMANCE CONDITIONS
The proportion of the performance shares that will vest depends on the achievement of both internal and external performance conditions, as measured over a three-year period. The achievement rates will be disclosed on a criterion-by-criterion basis once the Board of Directors has assessed whether the performance targets have been reached.
The performance conditions reflect a good balance between operating performance, investor confidence and the Group’s corporate responsibility performance. They are fully in line with Sodexo’s long-term value creation model aimed at achieving sustainable and profitable growth that benefits all of the Company’s stakeholders.
The selected criteria, which are all quantitative, are designed to measure overall performance and are directly related to the Group’s main strategic objectives, as follows:
- financial performance: 50%, assessed based on organic revenue growth and underlying operating profit margin targets. These targets strengthen the long-term vision given to these criteria, which are also part of the annual variable compensation;
- stock market performance: 30%, measured by the Total Shareholder Return (TSR) achieved by Sodexo as compared with a peer group of international companies of comparable sector and size (comprising the companies included in the international peer group). As a reminder, no shares vest if performance is below the median;
- corporate responsibility performance: 20%, including gender diversity targets met within Group's senior executives (Top 300) and an internal sustainable development scorecard. The latter is made up of three internal, quantitative operational criteria which are ambitious (more information is provided in Chapter 2 of this document).
- Relative TSR: 30%.
- Financial criteria: 50%.
- Organic sales growth: 20%.
- Underlying Operating profit margin: 30%.
- CSR criteria: 20%. Sustainable development scorecard: 10%.
- Gender diversity: 10%.
- External: 30%.
- Internal: 70%.
Sodexo Sustainable development scorecard
The Sustainable development scorecard for Fiscal 2025 is unchanged from the Fiscal 2024 plan.
This diagram shows the Sustainable development scorecard for Fiscal 2025 is unchanged from the Fiscal 2024 plan.
Our climate action levers are :
- Energy, reducing the direct carbon footprint, 3 measurable criteria at group level for fiscal year 2025 is the % of hybrid, electric & alternative fuel vehicles. The impact on Sodexo's carbon footprint* (see note*) is the reduction in scope 1 & 2.
- Cooking, reducing the footprint of the meals served, the measurable criteria at group level for fiscal year 2025 is the % of plant-based and/or vegetarian dishes in menus. The impact on Sodexo's carbon footprint* (see note *) is the reduction of the scope 3.
- Products, building a low-carbon supply chain, the measurable criteria for 2025 is the % of plant-based and/or vegetarian dishes in menus. The impact on Sodexo's carbon footprint* (see note *) is the reduction of the scope 3.
- Waste, reducing the carbon footprint, linked to food waste, the measurable criteria for the 2025 financial year is the % reduction in food waste. The impact on Sodexo's carbon footprint* (see note *) is the reduction of the scope 3.
(*) More information on Sodexo's carbon footprint and its impact on scopes 1, 2 and 3 is provided in Chapter 2.