Speaking in an interview with with French weekly Le Journal du Dimanche, Agon stated the decision will see L’Oréal switch to a ‘more transparent and less uncertain’ (translated – original interview in French) form of incentivising based on performance awarding free shares to managers when goals are met.
The L’Oréal boss currently holds 400,000 stock-options with an estimated value of €6.8m, which Agon insists is irrelevant until he exercises the options.
Agon will return half of the options and “keep 200 000 in order to share a performance dynamic with our stockholders.”